Why are so many people talking about IUL ( Indexed Universal Life)?
IUL is popular because it achieves two separate goals: death benefit protection, and the potential for a unique type of cash value accumulation. It is a balance of financial security snf the opportunity for growth.
Instead of set percentage of interest accumulation, IUL offers policy owners the chance to tie their interest accumulation to a particular index. When the index grows, they earn a certain percentage of interest. When the index drops, they earn less interest but they’re not going to lose any of the cash value they’ve already accumulated.
Some polices will guarantee a minimum rate of 1%-regardless of how the market fluctuates.
Best of all, policy owners can subdivide their account into segments, selecting multiple indexes or markets if they want.
Most have face amounts as low as $30,000 and are available up to Age 85.
Ideal IUL clients:
Need death benefit protection for their loved ones
Want to take advantage of market gains (upside potential)
Don’t want the risk involved in a market crash (downside protection)
Can afford higher premiums, as opposed to a term policy
See the benefits in cash value for supplemental retirement income
Want to be able to access cash value or death benefit for chronic illness or long-term care