Indexed universal life insurance (or “IUL”) is a type of permanent life insurance, which means it has a cash value component in addition to a death benefit. The money in your cash value account can earn interest based on a stock market index, such as the S&P 500 or the Nasdaq Composite. Funds don't earn a fixed rate of interest but typically come with an interest rate guarantee and minimum performance guarantees.
One of the benefits to this type of policy, in addition to the death benefit, is its potential to build cash value. You can take cash value from your policy to use for anything you choose via policy loans and withdrawals. Interest is credited based on a fixed rate or how indexed accounts perform. While not directly invested in the stock market, the interest credited to an indexed account is based on the performance of the index.
Each indexed account includes a minimum crediting rate of 0% (the floor) that protects you from market-based loss; it may also include a maximum crediting rate that would limit growth as well (the cap).
There are many factors which separates this asset from others. A few of the highlights are related to the tax treatment, cash accumulation potential, and guarantee(s) these life insurance policies come with.
Everyone’s situation is different, and everyone requires personalized attention with ongoing financial strategy optimization.
That said, if you think stability, contractual performance guarantees, often tax-favorable treatment, legacy planning, and liquidity access are important to your picture, then yes!
We look at various strategies and asset components on a daily basis. We would be hard pressed to find another core component that suits the needs of so many of our clients better.
Like all life insurance, your beneficiaries will receive the death benefit typically free of federal income tax, and growth within the policy is tax-deferred.
Indexed accounts often include a minimum crediting rate of 0% (the floor) that protects you from market-based loss; it may also include a maximum crediting rate that would limit growth as well (the cap).
Guaranteed income-tax free death benefit to support your loved ones in time of need and beyond.
You also have the potential to build cash value (“living benefits”) with a portion of your monthly premiums earning interest based on either a fixed rate or on the performance of the indexed accounts.
You decide when (monthly, quarterly, bi-annually, annually) and how much to pay (provided you meet certain minimums).
A choice of riders or add-on benefits can be used to customize coverage.
2929 W. Navigator Dr. Suite 300, Meridian, ID 83642*
208-297-7168*
Support@USLifePro.com*
2929 W. Navigator Dr. Suite 300, Meridian, ID 83642*
208-297-7168*
Support@USLifePro.com*
The Flexmethod is a system designed to fully utilize the characteristics of insurance policies. Insurance services are offered through the Stafford Corporation (“Stafford”), doing business as “US Life”, which is a licensed insurance producer in Idaho and offers insurance products and services through its licensed insurance brokers. Certain eligibility restrictions may apply. In connection with the strategies you may discuss with your US Life advisor, Stafford may incorporate the services of affiliated service providers. The compensation earned by these entities presents a conflict of interest for Stafford because Stafford is incentivized to use or recommend that you use these affiliated service providers. The statements contained herein are aspirational in nature and for illustrative purposes only. The suitability of all US Life strategies and their potential results will depend on the facts and circumstances of the individual policyholder and future economic conditions that are impossible to know in advance.
There are risks associated with asset backed lending strategies that you should consider and discuss with your US Life representative and other financial professionals, including, but not limited to, policy performance, interest rate risk, and additional loan renewal requirements. Any guarantees and benefits of an insurance policy are subject to the claims-paying ability and financial strength of the issuing insurance company. No other guarantees by any other party should be assumed or implied. It is possible coverage will expire when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage. Distributions taken through loans and withdrawals will reduce a policy’s cash surrender value and death benefit and may affect policy coverage and performance. In addition, if the policyholder fails to repay any insurance-backed loan pursuant to its terms, the loan could default, the insurance contract could lapse, and the value of the policy could be forfeited. Certain strategies seek to provide access to potentially tax-free withdrawals because loans are generally not considered income; however, you should consult with your tax advisor regarding the specific tax implications of any strategy. Tax implications are possible if a life insurance policy is sold or surrendered. Not all US Life solutions are available in all states or jurisdictions. Please consult with your US Life professional and insurance agent for specific information related to your needs. US Life does business as USL Insurance Services for business conducted in the state of California, Insurance License #0K65443.
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