BENEFITS FOR EMPLOYEES
APPRECIATION
The plan can show appreciation for hard work.
POST RETIREMENT BENEFITS
The plan can provide the executive with post-retirement benefits.
CASH SURRENDER VALUE
The employee can potentially receive income tax-free withdrawals and loans from the cash surrender value.
BENEFICIARY
The employee can name a beneficiary to receive the life insurance benefit at their death.
BENEFITS FOR EMPLOYERS
TAX DEDUCT-ABLE BONUSES
The business can deduct the bonus from its taxes.
RETAINING KEY EMPLOYEES
The plan can help reduce turnover by rewarding key employees with a unique benefit.
FINANCIAL INCENTIVES
The plan can provide long-term financial incentives.
COST – EFFECTIVE
The plan gives employees additional compensation with a lower current cost to the employer than some other types of benefits.
BENEFITS OF INDEXED UNIVERSAL LIFE INSURANCE
CASH VALUE GROWTH
Tax Advantage UL policies offer tax-advantaged cash value growth. A tax-free death benefit is distributed to your beneficiaries, which means it won’t face income or death taxes.
FLEXIBLE PREMIUM
IUL policies offer flexible premiums. A common guideline for purchasing an IUL policy is the 7 Pay rule, which stipulates that a purchaser should pay the initial premium over seven years rather than one lump sum. This allows the cash value to accumulate more quickly and helps to maximize the returns of the policy.
TAX ADVANTAGE
IUL policies offer tax-advantaged cash value growth. A tax-free death benefit is distributed to your beneficiaries, which means it won’t face income or death taxes.
LOAN AVAILABILITY
Depending on your policy and available cash, you can borrow money from your IUL without facing penalties, taxes or a credit check.
DEATH BENEFIT
IUL policies provide a death benefit that is tax-free for survivors. Policyholders can also access their death benefit early if they have a qualifying chronic, critical, or terminal illness.
NO LIMIT CONTRIBUTION
There is no contribution limit on an IUL policy, unlike an IRA or 401(k). You can put as much as you’d like into the contract and the amount will grow.
LIVING BENEFITS OF
Indexed Universal Life Policy
LIVING NEEDS BENEFITS
Can let you tap your death benefit if you become terminally or chronically ill.
CASH VALUE
IUL policies build cash value that can be used as a living benefit through policy loans. The cash value growth is based on the performance of a stock market index, such as the S&P 500.
INTEREST RATE PROTECTION
IUL policies ensure that your investment won’t dip below a certain interest rate.
UNLIMITED CONTRIBUTION
IUL policies allow unlimited annual contributions to broaden your earning potential.
FLEXIBLE CONTRIBUTION
IUL policies offer flexibility around the death benefit, and you can adjust the face amount and riders over time.
NO TAX
IUL policies can provide you with a way to access funds tax-free in retirement cash flow through policy loans.