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Indexed Universal Life Insurance

Here are the specific features of the IUL that turn the focus to cash value growth. Call our team today and we can explain it even more!

Insurance Agent

Interest Crediting

Each carrier offers a selection of stock market indexes that the policy owner can choose from to track. The money in the account value is not invested in these indexes. The indexes are only used to calculate the earnings at the policy anniversary. On the policy anniversary the snapshot of the performance of the index that year is used to credit the account value with interest earned. This action is called the annual reset provision and locks in the new account value until the next year earnings are measured and credited again.

Image by Corinne Kutz

The 0% Floor

Because the funds are not actually invested in the market the life insurance carrier is not exposed to the risk if an index performs negatively—or worse yet, a significant stock market downturn—the carrier does not have to transfer losses to the policy owners. Therefore, the worst the policy earnings for the year are zero. The policy earns only on upward growth and is protected from losses.

Image by Scott Graham

Indexing and Contract

Indexing. In most cases, the owner can change which indexes for the policy to track at least on an annual basis. This allows for flexibility and diversification during market uncertainty.

Contract. A life insurance policy is a contract. While it might be seen to some as a personal investment choice over other ways to allocate funds, an IUL is subject to protections not available through investing in stocks, mutual funds, or crypto.

1 / Planned Use For The Policy, Some Examples Are:
  • Passive income or retirement income stream

  • Infinite Banking

  • Corporate Incentives 

  • Reducing taxes by moving tax deferred to tax advantaged

2 / Anticipated Funding
  • Amount of Funds 

  • Source of Funds - Personal, Business, Or Both

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