Just like your map on your phone redirects you to a faster route to your ending destination, an IUL can direct you to a faster route to your financial goals.
Indexed Universal life (IULs) is a type of life policy where a small part of the premium goes to pay for the cost of life insurance and the rest goes into a cash-value account. The invested money has the potential to earn interest based on the indexes selected.
Indexed Universal Life Products Offer Unique Value
An IUL is tied to an index, such as the S&P 500 which has a 40-year rolling average return of 7.5%. For example, the IUL may earn a floor of 0% and a cap of 13.5% with a guaranteed minimum interest rate.
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Benefits of IUL’s
- Potential of above-average returns.
- Return earns between 0-13.5% but normally averages 7.5%.
- Your accumulated cash value is protected from negative market returns.
- A tax-free passive income stream!
- Generally, there are no limits to the amount you can contribute annually.
- IUL’s permit a tax-free exchange of one policy to another called a 1035 exchange.
- Death benefits are income tax-free.
Like any financial tool, understand the benefits and risks before making a decision. These policies may be good for someone who has capped out their annual ROTH IRA contributions and needs an alternative investment vehicle to create a tax-free passive income stream. It acts like a ROTH IRS on steroids!
These policies may be good for someone who has a certain level of financial sophistication and needs an alternative to more traditional life/investment products.
Contact Mountain Insurance: Longmont today with any questions about Indexed Universal Life (IUL) Insurance or for a free insurance evaluation.