Why IUL Indexed Universal Life Insurance?
Indexed Universal Life or IUL policies are a great option for individuals looking to grow their premiums while still enjoying the benefits of downside protection. Indexed Universal Life Insurance links the cash value to the performance of an index like the S&P 500, NASDAQ 100, or Russell 2000. You choose what percentage of the cash value should go into each investment, and the insurer tracks the performance within a defined floor & cap. There is typically a 0-2% floor along with an 8-12% cap. This way, the cash value grows alongside the performance of the index it’s linked to, but with downside protection.
What makes IUL policies appealing is the fact that they are tax-efficient. This means that any growth or earnings within the policy are not subject to immediate taxation, allowing policyholders to maximize the benefits of their investments.
So if you’re looking for a plan that combines growth potential, tax-efficiency, and downside protection an Indexed Universal Life policy may be the perfect choice for you. You can learn more in our post about “How IUL plans work: Floors, Caps & Compound Cash Value Accumulation”.