IUL POLICY GUIDE indexeduniversal.life 1-800-743-9221 [email protected] IUL2022IULPolGuide
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 TABLE OF CONTENTS 04 05 08 09 10 10 11 12 13 17 16 19 What is IUL, and How Does It Work? Indexed Universal Life (IUL) Insurance Crediting Methods Growing Tax-Advantaged Wealth Using Indexed Universal Life (IUL) Insurance Ways to Further “Customize” Your Indexed Universal Life (IUL) Insurance Policy Income Riders How IUL Could Enhance Your Retirement Accessing Tax-Free Cash from Your Indexed Universal Life (IUL) Policy How Much Does Indexed Universal Life (IUL) Insurance Cost? Pros and Cons of Indexed Universal Life (IUL) How to Find the Best IUL Policy for Your Specific Objectives? What If You Don’t Qualify for an IUL Policy? Is Indexed Universal Life (IUL) Insurance Right for You? 2
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 How to Identify the Best Indexed Universal Life Insurance Policy for Your Needs? If you’re approaching retirement, you may be searching for a way to keep your money safe while at the same time allowing it to grow and increase your asset base. However, accomplishing this can be difficult, especially in a way that reduces or eliminates taxes, given the volatile stock market and current (2021) low-interest-rate environment. But attaining this “best of both worlds” scenario may not be as challenging as you might think. In fact, with the right financial tools and strategy in place, you could add to your tax-advantaged savings, keep your principal protected in any type of stock market environment, AND generate tax-free income or withdrawals in the future. Believe it or not, there is a financial vehicle called indexed universal life (IUL) insurance. It offers flexibility to accomplish all of these goals and more, provided that you set it up correctly. Why earn more? This guide will show you what you need to look for in an indexed universal life (IUL) plan and how to maximize the benefits for yourself and your loved ones. 3
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 An indexed universal life (IUL) is a permanent life insurance policy that provides death benefit protection and a cash value component. Whole life and regular universal life insurance generate low returns in their cash value accounts. On the other hand, indexed universal life (IUL) insurance generates its cash value return based on the performance of one or more underlying market indexes, such as the S&P 500 and the Dow Jones Industrial Average (DJIA). This means you have the opportunity to increase the returns in the policy’s cash component and possibly even double or triple them in comparison to other types of permanent life insurance (as well as compared to other “safe” money investments like certificates of deposits and bonds). Although IUL and regular universal life insurance are structured similarly, there is a big difference in how the return is calculated with IUL insurance. Since various market indexes are tracked, the account’s value could grow exponentially, primarily if the policy is held over a more extended period). In addition, there are no losses in the IUL cash-value account, even if the underlying index(es) performs poorly in a given period. Moreover, there may even be a guaranteed “floor” rate still credited depending on the policy. This protection of principal provision means that there are no losses to make up for when (or if) the tracked index(es) turns positive again. So, the policy’s cash value can continue to build up. What is IUL, and How Does It Work? The Best Results Come From Expert Advice. Discover How You Can Benefit From An IUL Expert. IndexedUniversal.Life 4
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 While they offer similar features and benefits, not all indexed universal life (IUL) insurance policies are the same. For instance, several different “crediting methods” may be used to determine the cash value return. Although these “caps,” participation rates, and spreads may put a limit on the potential upside growth of the account, though, the “tradeoff” of no losses in the account, even during a significant stock market correction, can be well worth it. The crediting methods used with indexed universal life (IUL) insurance may include one or more of the following factors. In some instances, a combination of more than one will be used by the insurance carrier: Cap(s) Participation Rate(s) Spread(s) Caps With IUL insurance, a “cap” represents the highest rate of growth that can be credited to the policy’s cash value. Even if the underlying index (or indexes) has a substantially high return performance during a given contract year. For example, if an IUL policy has a cap of 7% and the underlying index generates a 10% return for the year, 7% will be credited are a return on the cash value for that time period. Alternatively, suppose the cap on the IUL policy is 7%, and the underlying index (or indexes) returns 3% for a particular policy contract year. In that case, the 3% will be credited to the cash value component for that duration. Participation Rates The offering insurance company also sets the participation rate on an IUL policy. These rates refer to the percentage of the index’s gain credited to an IUL’s cash value. For instance, if the participation rate on a policy is 80%, and the underlying index(es) generates 10% in a given time frame, then the cash value would receive an 8% positive return. 80% participation rate X 10% return on the underlying index = 8% return credited to IUL cash value Indexed Universal Life (IUL) Insurance Crediting Methods 5
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 Spreads A spread may also be used as part of the formula for determining an IUL policy’s cash value return in a given duration. This is also expressed as a percentage. In this particular case, a certain amount will be subtracted from the return that is actually generated from the underlying index(es). For example, if there is a spread of 4%, and the tracked index returns 10% in a given contract year, 6% will be credited to the cash value because 10% minus a 4% spread equals 6%. 10% return on the underlying index – 4% spread = 6% return credited to the IUL cash value In return for the potential limits on the upside of an IUL policy’s cash value, if the underlying index performs poorly in a given contract year, there are no losses incurred. In fact, with many IUL policies, the cash value is still credited with a guaranteed minimum rate such as 1% or 2%. So, even if an index loses value, the cash in the IUL policy can still keep growing. Therefore, given that there are no losses incurred, there are no negative returns that the account has to “earn back” before the cash value gets back to even. As a result, the value can continue to build up over time. As an example, if an investment that you hold for ten years generates a positive 10% return in years 1, 3, 5, 7, and 9, and a negative 10% return in the alternate years, you would essentially lose money. It happens because any time there is a loss incurred, the value must get back to an even number before it can start generating gains again. End of Year Gain or Loss Value of Account 1 10% $1,000.00 2 (-10%) $990.00 3 10% $1,089.00 4 (-10%) $980.10 5 10% $1,078.11 6 (-10%) $970.30 7 10% $1,067.33 8 (-10%) $960.60 9 10% $1,056.66 10 (-10%) $950.99 Investment with Alternating 10% Positive and 10% Negative Returns Source: The Retirement Miracle. By Patrick Kelly. 6
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 In comparing those same returns to the funds in an IUL policy, though, if the underlying market index being tracked returns a gain of 10% every other year for ten years, but it also incurs a loss of 10% in the other five years, the cash value would continue to perform in the positive. In this case, all your previous gains, including your principal in the cash component, cannot be lost. The Best Results Come From Expert Advice. Discover How You Can Benefit From An IUL Expert. IndexedUniversal.Life End of Year Gain or Loss Value of Account 1 10% $1.000.00 2 0% $1,100.00 3 10% $1,210.00 4 0% $1,210.00 5 10% $1,331.00 6 0% $1,331.00 7 10% $1,464.10 8 0% $1,464.10 9 10% $1,610.51 10 0% $1,610.51 IUL Policy with Alternating 10% Positive and 10% Negative Returns 7
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 As with other types of permanent life insurance (and annuities), the funds inside the account grow on a tax-deferred basis. It means that there is no tax due each year on the growth, but rather it is taxed in the future when withdrawing. However, there are ways to access these funds tax-free. These strategies will be discussed in more detail further in this guide. It is yet another feature that can help the funds inside of an IUL policy grow and compound over time. Often, they outpace a fully taxable investment, with all other factors being equal. It is because the funds generate a return on the principal and the previous gains and a return on the amount that would have been paid out in taxes. Growing Tax-Advantaged Wealth Using Indexed Universal Life (IUL) Insurance Tax-Deferred versus Taxable Growth $300K $275K $250K $225K $200K $175K $150K $125K $100K 0 5 10 15 Years Tax Deferred Fully Taxable 20 25 8
The Best Results Come From Expert Advice. Discover How You Can Benefit From An IUL Expert. IndexedUniversal.Life Everyone’s needs are different. So there is no single IUL policy right for everyone across the board. The premium charged for these policies can differ based on where they are purchased, even if they offer the same benefits and coverage amounts. On top of that, several indexed universal life (IUL) insurance policies provide additional features and benefits that can help you to more closely “customize” the plan to fit your specific needs. For instance, depending on the particular IUL plan, some of the most common riders offered include: • Waiver of Premium Rider — The waiver of premium rider will allow the policyholder to stop paying premium payments if they become critically ill, seriously injured, or disabled. (Based on the actual policy and the rider, other criteria may also need to be met to trigger the waiver of premium). • Accelerated Death and Dismemberment (AD&D) Rider — With the accidental death and dismemberment, or AD&D, rider, a benefit is paid if the insured dies or loses a limb or digit (which may include eyesight, hearing, or speech) in an accident. • Disability Income Rider — This rider provides a supplemental income benefit if you become disabled—as defined in the policy. The income payment is usually a percentage of the policy’s death benefit. So, for instance, in this case, if the face amount of the policy is $100,000, then the monthly income paid out would be $1,000. • Guaranteed Insurability Rider — The guaranteed insurability rider allows you to purchase additional life insurance at a time in the future without proving your insurability (such as per your health condition). Generally, the guaranteed insurability rider will only allow the purchase option(s) to take place at pre-specified times or for various life events, such as the insured getting married or having a child. This rider may be a viable option if you cannot afford a large amount of life insurance at this time but will need to increase your coverage later on. • Terminal / Chronic Illness Waiver — With many IUL policies, you can access a portion of the funds penalty-free if you have been diagnosed with a terminal or chronic illness. • Long-Term Care Waiver — Many indexed universal life insurance policies will also allow accessing funds if you require care in a nursing home for at least a certain amount of time (such as 90 days). This can help you keep other assets intact and thus used for their originally intended purposes. Ways to Further “Customize” Your Indexed Universal Life (IUL) Insurance Policy 9 IUL2022IULPolGuide [email protected] • indexeduniversal.life • 800-743-9221
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 Before purchasing an indexed universal life (IUL) insurance policy, it is recommended that you work with a life insurance specialist well-versed in this type of plan. This way, you can be more assured that you choose the right tool for your specific needs and objectives. Although many people purchase life insurance for death benefit protection, they can also attain numerous benefits while the insured is alive. Due to this flexibility, policies like indexed universal life (IUL) are being purchased for a variety of other needs, such as supplementing retirement income, paying off high-interest debt, putting a down payment on a new home, or even taking a long-awaited vacation. A couple of options are available for accessing money from the cash value component of an IUL policy. These include making direct withdrawals and taking policy loans. Many IUL policies also offer penalty-free withdrawal waivers under certain circumstances, such as a terminal illness diagnosis or the need to reside in a nursing home for a minimum amount of time (such as 90 days). However, it is essential to note that withdrawing funds from the policy could “cost” you in taxes, surrender charges, or an additional 10% IRS “early withdrawal” penalty. Therefore, it is possible to net out only about 50% of the total withdrawal. The good news is that there are some solutions you could seek. For example, it can be “expensive” to withdraw funds from an IUL policy, which will reduce the amount of money you have to use from the withdrawal. Therefore, many policyholders take an alternate route for accessing money from the cash value, done through a tax-free loan. Income Riders How IUL Could Enhance Your Retirement 10
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 The word “loan” might not be very enticing to most people. But in the case of indexed universal life (IUL) insurance, taking a policy loan to pay off debt, make purchases, or supplement retirement income could be beneficial. One reason for this is that you will have use of 100% of the money you access, as there is no tax due on the borrowed funds. In addition, you are technically borrowing these funds from the insurance company and not directly from your IUL policy’s cash value. Therefore, interest will continue to generate on the total amount of the cash in your plan. In looking at a hypothetical example, if your IUL policy has a cash value of $80,000 and you borrow $40,000, the return on your cash component is still determined based on the total of $80,000. As an additional bonus, even though interest will accrue on the loan’s outstanding balance if the loan has not been paid back in full by the time the insured passes away, the balance will simply be paid off using the proceeds from the death benefit. (Afterward, the remaining death benefit funds will be paid to the beneficiary(ies) named in the policy). You could also have the opportunity to receive the money cost-free and tax-free. This is because, even though the insurance company will charge you an interest rate on the borrowed funds, this interest could essentially be offset by the interest that your money is continuing to earn. As an example, if the insurance carrier charges you 2% (which is quite possible, as life insurance policy loans will often have a lower interest rate than traditional loans from banks and other lenders), and the money that is sitting in your policy’s cash value is also earning a 2% rate of interest, then you have just secured a no-cost distribution. It is best that before you take any type of cash from an IUL policy, you work with a specialist to structure that loan provision so that it fits all of the required parameters and obtain the best rates possible. Accessing Tax-Free Cash from Your Indexed Universal Life (IUL) Policy 11 The Best Results Come From Expert Advice. Discover How You Can Benefit From An IUL Expert. IndexedUniversal.Life
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 Several factors go into pricing indexed universal life (IUL) insurance. In reality, policies with the same death benefit and other features could differ in price growth/return. Therefore, it is crucial to obtain more than just one quote before you purchase an IUL policy. You could do so by contacting several different insurance carriers or by working with a life insurance specialist who has access to multiple companies and can compare this information quickly and easily for you. The criteria typically included when determining the premium cost of an IUL policy are the following: Amount of the proceeds / death benefit coverage Age and gender of the insured at the time of application Health history of the proposed insured (as well as family health history) Prescription medications used Previous and/or upcoming surgeries or medical procedures Smoking status (including cigarettes, cigars, marijuana, and chewing tobacco) Occupation (particularly if it is risky, such as being a police officer or a firefighter) Marital status State of residence Other life insurance coverage that the insured has in force (and the amount of those proceeds) Insurance carrier that is offering the IUL policy In addition, you may also undergo a paramedical exam where you will provide additional health-related information and submit a blood and urine sample so that it can be tested for various health conditions. (This way, the insurance carrier can better understand how much risk it may be taking on if it approves you for the life insurance coverage). How Much Does Indexed Universal Life (IUL) Insurance Cost? The Best Results Come From Expert Advice. Discover How You Can Benefit From An IUL Expert. IndexedUniversal.Life 12
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 Many investors don’t realize how flexible life insurance can be, especially a vehicle like indexed universal life (IUL), which offers tax, income, and other financial-related advantages, even when the insured is alive. Some of the biggest advantages of indexed universal life (IUL) insurance include: Death Benefit Protection. Because it is a life insurance product, the death benefit paid out from an IUL policy is free of income tax to the beneficiary(ies). It means that the beneficiary(ies) can use this amount for debt payoff, income replacement, or final expenses like a funeral service, burial plot, and headstone. Opportunity for Additional Return. While most types of permanent life insurance policies offer a low return on the cash value component, indexed universal life (IUL) provides the opportunity to generate a higher amount based on the performance of one or more underlying market indexes. Protection of Principal. Coupled with the ability to generate a higher return is the safety of principal in the cash value component of an IUL policy. This is the case, regardless of whether the tracked index(es) performs in the positive or negative. Because there are no losses to make up for, the account’s value can continue to grow, based on both the contributions and the previous gains. Tax-Deferred Growth. The growth in an IUL policy’s cash value is tax-deferred, meaning that there is no need to pay tax on the gains in a given year. Moreover, tax is not due unless or until you withdraw cash. Flexibility. Like other universal life insurance policies, IULs can offer a degree of flexibility not typically found with other life insurance options. For instance, the policyholder may be allowed to alter the timing and amount of the premium payment and the allocation of premium that goes towards the insurance portion and the cash value portion of the policy (usually within certain guidelines). Liquidity. Typically, there is a surrender penalty if a policy is canceled in the early years or if more than a maximum amount of cash is accessed annually. Regardless, many IUL policies will allow for surrender penalty-free withdrawals (often up to 10% of the cash value per year) after the first policy year. Tax-Free Access to Cash via Loans. Cash from an indexed universal life (IUL) insurance policy can be accessed tax-free by taking a policy loan. This means that 100% of the funds may be used for the policyholder’s needs. In addition, if the loan is not fully repaid upon the insured’s death, the balance is simply deducted from the policy’s death benefit (with the remainder of the funds paid out to the beneficiary). Additional “Customization” with Riders. Adding certain riders to an IUL policy may customize the plan to meet specific needs and objectives. No income limit. Unlike a Roth IRA account, where you could earn “too much” income to open and fund an account, there are no income limits for indexed universal life (IUL) insurance policy participants. Resultantly, those who are higher income earners can still have the opportunity to use this type of savings and income planning for retirement. No age limit. When taking a tax-free loan from an IUL policy, the IRS will not penalize you for taking distributions before age 59 ½. Therefore, if you opt to retire early or you wish to use the funds for other purposes, you can do so without Uncle Sam coming for his share. Pros and Cons of Indexed Universal Life (IUL) 13
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 No contribution limit. Also, unlike IRAs and employer-sponsored qualified retirement accounts, there is no limit on how much you can contribute to a life insurance policy each year. So, even if you have “maxed out” your yearly contributions to these other plans, you can still contribute to your life insurance policy with no upper limit. No Required Minimum Distribution requirements. Unlike the traditional IRA and 401(k) plans, which now require that you start taking distributions from the plan at age 72, there is no such rule with indexed universal life (IUL) insurance. So, if you don’t need the money, it can remain in the policy’s cash value and continue to grow on a tax-advantaged basis. Protection from creditors. In many instances, the money in your life insurance policy’s cash value is protected from creditors. Therefore, even in the event of a lawsuit or other situation that could threaten your assets, these funds will typically be safe. The plan is considered to be “self-completing.” Because of the death benefit associated with indexed universal life (IUL) insurance policies, these plans are considered “self-completing,” meaning that, even in the event of the unexpected, your survivors will still be protected financially with the policy’s death benefit free of income tax. Funding mechanism in a business succession plan. You can use indexed universal life (IUL) insurance as a funding mechanism for business succession planning. For example, with a key person plan, a company will purchase life insurance coverage for the executives and/or other high-ranking individuals. The business is named as the policy beneficiary. Then, suppose a key person passes away while the life insurance policy is still in force. In that case, the death benefit is paid out to the company, and the funds can be used for keeping the business afloat until a replacement is found or until the business is ultimately sold to the right buyer. 14
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 It may also be possible for you to add one or more riders to an IUL policy. Life insurance policy riders represent an addition or a subtraction of a particular benefit or feature on a policy. Some of these riders may cost you an additional premium, while others may be free. Even with the long list of advantages, there are some factors to be mindful of before purchasing an IUL policy. These can include the following: Upside return limit (due to caps, participation rates, and/or spreads) Surrender charges (at least during the early years of the policy) Premium could increase in the future (due to higher insurance costs) Possible additional 10% IRS “early withdrawal” charge if funds are accessed before turning age 59 ½ Must be able to qualify for the insurance Policies can be confusing, particularly the cash value crediting methods. Advantages of IUL Disadvantages of IUL Death benefit protection (received without income tax by the beneficiary) Limited upside return on the policy’s cash value Opportunity for higher cash value return Surrender charges Principal protection Possible premium increase(s) Tax-deferred growth IRS early withdrawal penalty (if under age 59 ½ when taking withdrawals) Liquidity Must qualify for the insurance coverage Flexibility with timing, amount, and placement of premium dollars Many “moving parts” can make policies confusing Tax-free loan(s) May customize with added rider(s) No income limits to apply for and fund a policy No maximum annual contribution limits No required minimum distribution (RMD) rules Protection from creditors (in some states) Could be used for business succession planning / funding Pros and Cons of IUL Insurance 15
Indexed universal life (IUL) insurance can bear numerous benefits. Regardless, this particular financial vehicle may or may not necessarily suit your short- and long-term objectives. With that in mind, before you commit to purchasing an indexed universal life (IUL) insurance policy, there are some essential items to consider, such as: Type of death benefit that would fit your (and your loved ones) needs the best How much death benefit you would need (for example, to cover outstanding debt balances, income replacement, and more) Whether you need additional tax-advantaged savings alternatives (especially if you have “maxed out” your IRA and/or employer-sponsored retirement plan contributions) How much growth / return are you looking for within the cash value component Your current health condition (if you will be the insured on the IUL policy) Your sources of retirement income, and whether you should add an additional stream using the cash from the IUL policy Whether you have any other life insurance in force, and if so, the amount of the coverage If you plan to use the policy’s death benefit as a charitable contribution Legacy plans for survivors Business succession plans and funding options The “floor,” or guaranteed interest rate on the IUL policy Any caps, participation rates, and/or spreads associated with the return on the cash value Index(es) that are tracked in the policy Financial stability and claims-paying reputation of the insurance company offering the policy How to Find the Best IUL Policy for Your Specific Objectives? The Best Results Come From Expert Advice. Discover How You Can Benefit From An IUL Expert. IndexedUniversal.Life 16 IUL2022IULPolGuide [email protected] • indexeduniversal.life • 800-743-9221
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 If the proposed insured on an indexed universal life (or any life insurance) policy has various health issues, it may not qualify for the coverage. In other cases, the individual may be able to secure the coverage but at a higher premium rate or a lower amount of the death benefit on the policy to help cover the added risk that the insurance carrier will be taking on. Like with the calculation of the premium payment, life insurance underwriters review several factors that can determine whether or not an applicant for coverage will be approved or denied. These can include: • Type and amount of death benefit coverage being applied for • Birthdate • Gender • Health history • Previous surgeries or other medical procedures • Family health history • Medications • Smoker / Non-smoker status • Marital status • Occupation • Hobbies • Other life insurance coverage. What If You Don’t Qualify for an IUL Policy? 17
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 The Best Results Come From Expert Advice. Discover How You Can Benefit From An IUL Expert. IndexedUniversal.Life If an applicant doesn’t qualify for fully underwritten insurance, there are still ways to obtain coverage. One option is to go with guaranteed issue life insurance. A guaranteed issue life insurance policy can provide those who have certain health issues (including some serious conditions) to obtain protection, even if they have been turned down in the past for traditionally underwritten coverage. That is because guaranteed issue life insurance policies are issued to applicants, regardless of their health condition. There is both life insurance protection and cash value with a permanent guaranteed issue policy. The funds in the cash value component of the policy are allowed to grow tax-deferred. This means that there is no tax due each year on the gain unless the money is withdrawn. Because applicants for guaranteed issue life insurance are often considered more of a risk to the insurance company, the coverage on these plans is typically somewhat low. Given the increased risk to the insurer, the premium charged for guaranteed issue life insurance may also be higher than that of a comparable policy that is traditionally underwritten. Likewise, the full amount of a guaranteed issue policy’s death benefit may not be paid out to the beneficiary if the insured dies within the first two years of purchasing the coverage. However, if the insured survives past this time limit, the total amount of the death benefit will be paid. Moreover, as with other types of life insurance, these funds are received by the beneficiary free of income taxation. 18
IUL2022IULPolGuide [email protected] • indexeduniversal.life • 1-800-743-9221 You can attain numerous benefits by including indexed universal life (IUL) insurance in your overall financial and retirement plan. These policies can be highly beneficial, even when the insured is alive. IUL policies also have many “moving parts,” making them somewhat confusing to understand. Because of that, it is recommended that you first discuss your needs and objectives with a life insurance specialist before you commit to purchasing an IUL plan. That way, you can be more assured of obtaining the right plan for you. If you would like to set up a time to chat with a specialist who can walk you through more in-depth details regarding how indexed universal life insurance works or to obtain a quote on an IUL policy, please feel free to contact us directly by sending any questions that you have to us at [email protected] and we’ll be happy to respond. We look forward to helping you understand how IUL works and whether or not it could work for you and your loved ones. Is Indexed Universal Life (IUL) Insurance Right for You? Disclosure: Content is not personalized financial advice and should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Tax and legal information provided is general in nature and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. Indexed universal life insurance may not be suitable for you depending upon your investment objectives, risk tolerance, financial situation, and liquidity needs. Accessing policy cash value through loans and surrenders may lead to a permanent reduction of the policy’s cash value and death benefit, which may lead to a potential lapse of the policy. There may be tax penalties for distributions prior to age 59 ½. Insurance product guarantees are subject to the claims-paying ability of the issuing companies success. Working with a highly-rated adviser also does not ensure that you will experience a higher level of performance. Please contact the adviser for more information regarding the criteria for any awards or rankings noted. Ratings can be based on client evaluations, professional activity and promotional fees paid by the professional. 19
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 25 Indexed Universal Life [email protected] indexeduniversal.life
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