An IUL could be the missing piece in your financial strategy, offering growth, protection, and flexibility. If you’d like to learn more about how it works and whether it’s a fit for your goals, I’m here to help.
Accessing policy cash value through loans and surrenders may cause a permanent reduction of policy cash values and death benefit and negate any guarantees against lapse. The amount that can be borrowed or surrendered will be affected by the surrender charges applicable to the policy. Loans may be subject to interest charges. Although loans are generally not taxable, there may be tax consequences if the policy lapses or is surrendered with a loan.
Schedule a no-obligation call and, together, we’ll build a plan that protects your future and gives you confidence in your financial decisions.
Ready to Explore Your Options?
Like all financial tools, an IUL isn’t a one-size-fits-all solution. Your goals, risk tolerance, and overall financial picture will determine whether it makes sense for you. Some people use IULs to complement their 401(k) or IRA, while others see it as a way to diversify their savings.
Every person is different and your age, health, goals, tax situation, and more factors need to be considered before adding an IUL to your financial plan.
That’s why creating a comprehensive plan is so important. A good financial plan considers all your options and ensures everything works together to meet your unique goals. I’m Philip Sessoms (aka Financial Phil), and my role is to guide you through the available strategies, explain the pros and cons of each, and help you choose the ones that make the most sense for your situation.
Is an IUL Right for You?
- Tax-Advantaged Growth
The cash value in an IUL grows tax-deferred, meaning you don’t pay taxes on your earnings as long as the money stays in the policy. This can help your savings grow faster compared to taxable accounts. - Downside Protection
Unlike investing directly in the stock market, an IUL shields your cash value from losses. If the market drops, your principal is protected, ensuring you won’t lose what you’ve built. - Flexibility
An IUL allows you to adjust your premiums and coverage over time, making it a customizable solution that can evolve with your financial needs. - Supplemental Income
Once your cash value has grown, you can access it through policy loans or withdrawals. This can provide a tax-free source of income during retirement or help fund other financial goals.
Benefits of an IUL
An Indexed Universal Life Insurance policy combines two essential components: life insurance coverage and a cash value account.
You are probably familiar with life insurance. In its simplest form, when the insured person passes away, the family gets the cash value of the policy. With savings or investment accounts, money is deposited and then paid interest or invested to grow the overall value.
IULs mash these two things together. The premiums you pay are for life insurance coverage, but they aren’t just paid to the insurance company. The cash value grows over time based on the performance of a stock market index, such as the S&P 500. The key benefit? Your money grows when the market does well, but it’s also protected from losses during market downturns.
This combination of growth potential and downside protection makes IULs an attractive option for those who want to safeguard their wealth while pursuing steady, long-term growth.
What is an IUL?
When it comes to protecting and growing your wealth, there’s a financial tool that often goes overlooked: Indexed Universal Life Insurance (IUL). An IUL isn’t just life insurance—it’s a flexible strategy that can help you grow your money over time, while also providing protection for your family.
IULs first became available to investors in the late 1990’s. Today, there are dozens of companies offering them with options that can make them an excellent fit for investors.
Let’s explore how it works and why it could be a smart addition to your financial plan.
