Indexed Universal Life (IUL)
Permanent life insurance that offers a death benefit along with the potential to build tax-advantaged cash value over time.
Downside Protection
Unlike investing directly in the stock market, IULs have a "floor" (often 0%). When the market drops, your cash value doesn't lose money due to market performance.
Upside Potential
Your cash value growth is tied to a market index (like the S&P 500). When the index goes up, you participate in those gains up to a certain "cap".
How Does an IUL Work?
An IUL is a type of permanent life insurance. That means as long as you pay the required premiums, the coverage lasts your entire life.
What makes it unique is the cash value component. A portion of your premium goes toward the cost of insurance, and the rest goes into a cash value account. This account grows tax-deferred based on the performance of a stock market index.
Later in life, you can borrow against this cash value tax-free to supplement your retirement, pay for college, or handle emergencies.
Is an IUL Right For You?
IULs are powerful tools, but they aren't for everyone. They require proper funding and a long-term commitment. Let's look at your financial picture to see if it makes sense.