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Why didn’t my financial advisor or my CPA tell me about Index Universal Life Insurance?

It’s simply not in their area of expertise.


There are many financial advisor’s that are licensed life insurance agents. That originates from helping their clients insure they have enough death benefit coverage. While more and more financial advisors are being called upon to understand the value of cash value life insurance in the client’s portfolio. Studying another expertise isn’t all that appealing to many. Plus, it often runs counter to a traditional tax deferred approach. Similar for many CPA’s.

I don’t care about the death benefit; I just want to open an account—why can’t I just do that?

Using life insurance still requires the ability to be insured.


A life insurance policy is a contract. The death benefit is part of the contract, and it is what makes the policy a life insurance policy.  Because it is a life insurance policy, then the contract qualifies to be utilized to follow the tax codes that allow the owner to use the policy in one of the many be your own bank strategies. Fortunately, our skilled agents know how to minimize the death benefit and therefore keeping the focus on cash accumulation and growth.

When is the best time to start?

As soon as the funds going into the policy are over and above day-to-day living.

Once the policy owner is comfortable financially, the next move is the sooner the better. The younger the insured the lower the costs of insurance and the more years of compound interest. Plus, health, driving, and financial history play a role in getting approved so it’s best to time a policy when these factors are at their best.

Is my money safe in an IUL?

Life insurance is one of the safest industries within financial services.


Life insurance policies are contracts with the life insurance carriers. Carriers are subject to regulations and are required to have enough cash reserves to back all the outstanding policies. Moreover, during periods of financial crisis it’s banks that struggle and occasionally fail. During those tough times, banks tend to move toward more life insurance for the security.

Can’t I just go to an agent in my city?

Knowing how to write a policy to maximize cash value is not every life insurance agent’s area of expertise.

Life insurance agents are taught to write policies based on the need for death benefit coverage--which is still a highly valuable benefit to life insurance. An agent is taught to help determine coverage based on the potential hardship to loved ones in the event the insured dies.


Therefore, not just any agent can write the best policy designed to maximize the cash value because that requires the least amount of death benefit and that runs counter to the natural instincts of most life insurance agents.

Can I roll my 401k into an IUL?

Not directly, but there are options.


A 401k is a qualified plan—meaning the funds going into the 401k are pre-tax dollars.  A life insurance policy is a non-qualified plan funded by post-tax dollars. If your 401k is eligible to be rolled over and you are looking to have your 401k funds protected from market downturn and the growth that and indexing can provide, please connect with one of our agents to learn more about Fixed Indexed Annuities.

How young can the insured be for a policy be started?

As early as two weeks old.


Once there is a social security number a policy application for a youth can be submitted. Even at $50 a month a policy for a young person can take advantage of a long runway of compound interest.

Will the government ever take this away?

Not too likely.


When the IUL was designed the IRS regulations were already taken into consideration. Further, there are countless politicians that utilize life insurance as part of their own portfolio. The IRS and legislators do regularly look at life insurance whenever they are looking for ways to balance the budget so no one has a crystal ball. It’s important to note that whenever there is a legislative adjustment it applies to future policies and current in force policies are consider contracts and are left as is.

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