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Have You Considered an Alternative Route?


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

  • Potential of above average returns
  • Return earn between 0-13.5% but normally averages 7.5%.
  • Your accumulated cash value is protected from negative market returns
  • A tax-free passive income stream!
  • Generally, there are no limits to the amount you can contribute annually
  • IUL’s permit tax free exchange of one policy to another, called a 1035 exchange
  • Death benefits are income tax free

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.


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