Indexed Universal Life Products Offer Unique Value
Just as in the case where you phone redirects you to a faster route to your ending destination, an IUL can direct you to a faster route to your financial goals.
Indexed Universal life (IULs) are a type of life policy where a part of the premium goes to pay for the cost of life insurance and the rest goes into a cash value account. The invested money has the potential to earn interest based on the indexes selected.
An IUL is tied to an index, such as the S&P 500 which has a 40-year rolling average return of 7.5%. For example, the IUL may earn a floor of 0% and a cap of 13.5% with a guaranteed minimum interest rate.
Benefits of IUL’s
Like any investment, understand the benefits and risks before making a decision. These policies may be good for someone who has capped out their annual ROTH IRA contributions and needs an alternative investment vehicle to create a tax-free passive income stream. It acts like a ROTH IRS on steroids!
Next newsletter will include an even more compelling reason to start an IUL…Long-Term Care benefits!
Contact Steve Longenecker to have a complete review your needs for life, disability, or long-term insurance in Longmont, CO or neighboring communities.
These policies may be good for someone who has a certain level of financial sophistication and needs an alternative to more traditional life/investment products.