Indexed Life Insurance (IUL) versus Term Life Insurance
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 2 Indexed Life Insurance (IUL) versus Term Life Insurance Life Insurance Types Term Life Insurance Permanent Life Insurance Term Life Insurance versus Indexed Universal Life (IUL) Term Life Insurance vs. Indexed Universal Life The better option: Indexed Universal Life or Term Life Insurance? TABLE OF CONTENTS 03 23 04 24 05 06 11
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 3 Life insurance can be an integral component of almost all financial plans. Although most people don't like to think about the unexpected, the truth is that illness and accidents can and do occur. When they do, life insurance can provide those you love and care about with a financial "safety net." But death benefit protection isn't the only reason people purchase life insurance. In fact, due mainly to its tax-advantaged nature, more people are obtaining certain types of life insurance for the living benefits they can provide. These include tax-deferred growth of the cash value, penalty-free withdrawals for healthcare or long-term care services, and/or a retirement income supplement. Before purchasing any type of life insurance, you should understand how different policies work and why they may or may not be a viable fit for your specific short- and long-term financial objectives. Indexed Life Insurance (IUL) versus Term Life Insurance
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 4 In its most basic sense, a life insurance policy is a contract between an individual (or more than one individual) and an insurance company. In return for the payment of a premium (either one single lump sum, or multiple payments over time), the insurance company is obligated to pay a certain amount of proceeds (free of income tax) to a named beneficiary(ies) upon the death of the insured, provided that the policy is in force at the time of his or her death. Although many variations of life insurance are available in the marketplace today, there are just two main categories of coverage. These are: • Term life insurance • Permanent life insurance While both types of life insurance can provide a taxadvantaged payout to one or more beneficiaries when the insured passes, a long list of other features and benefits may be included on certain policies. Often, these can be used during an insured's lifetime. Life Insurance Types
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 5 Term life insurance offers death benefit only coverage, without any associated cash value or investment build-up within the policy. These policies remain in force for a certain time, or "term," such as 10, 20, or even 30 years. Many insurance carriers also offer a one-year renewable term life insurance option. Term life is considered the most basic, plain, or “vanilla” type of life insurance protection currently available. The premium for term life insurance is often relatively low, especially if the insured is young and in good health when the policy is purchased. But if the insured wants to continue having life insurance coverage after the initial time frame (or term) has elapsed, the premium will likely rise by large amounts if they opt to renew the policy. This is particularly so if they are in poor health and due to their thencurrent older age (and subsequent shorter life expectancy, which equates to more risk to the insurance company). Suppose the insured has serious healthrelated issues at policy renewal time. In Term Life Insurance Pros and Cons of Indexed Universal Life Insurance Term Life Insurance Advantages Term Life Insurance Drawbacks Lower premium compared to permanent life insurance with the same amount of death benefit (especially if the insured is younger and/or in good health) Policy expires after a preset period of time May be converted to permanent life insurance coverage Can be expensive if it is renewed Death benefit is income tax-free to beneficiary(ies) Could leave the insured without future coverage if they become uninsurable and are unable to renew that case, they might not even be eligible to obtain a new life insurance policy (at least not one fully underwritten). Therefore, term life insurance might not be the best option for those who have certain health conditions that run in the family if coverage is needed for an extended period. Although it isn't suitable for everybody's needs, term life insurance is usually used to cover debts or financial obligations that are considered "temporary," such as the payoff of a 30-year mortgage or the funding of a child or grandchild's future college education expenses. Some term life insurance policies are "convertible." This means that they can be converted over from term (or "temporary") into a permanent form of coverage (usually whole life or universal life insurance coverage). The policy conversion must typically occur within a specific time window. In some cases, the insured may not be required to show proof of insurability before converting the policy from term to permanent.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 6 Permanent life insurance offers both death benefit protection and a cash value component, all wrapped into one plan. As long as the premium is paid, the permanent life insurance coverage will remain in force, regardless of the insured's increasing age or any adverse health issues contracted by the insured after purchasing the policy. The funds in the cash value component of a permanent life insurance policy are allowed to grow on a tax-deferred basis. This means that no tax is due on the gain unless the funds are withdrawn (which may not occur until the future). Money from the cash value portion of a permanent life insurance policy can be accessed, including supplementing retirement income, paying off high-interest debt, making high-ticket purchases such as a new vehicle, or paying for a nice vacation. Permanent Life Insurance There are many different permanent life insurance variations, as with term insurance. The most common of these include: • Whole Life Insurance • Universal Life Insurance • Variable Life Insurance • Variable Universal Life (VUL) Insurance • Survivorship Life Insurance • Indexed Universal Life (IUL) Insurance
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 7 Whole Life Insurance Whole life insurance is a type of permanent life insurance providing a death benefit and a cash value component. It is considered the most basic form of permanent insurance available, and is designed to remain in force for a lifetime. The death benefit and the amount of the premiums remain level, and the death benefit is also guaranteed. Over time, the cash value grows on a taxdeferred basis, so no tax is due until the funds are withdrawn. While the premiums for a whole life insurance policy may start higher than that of a comparable term life insurance policy, the level premium will eventually become smaller than the ever-increasing premium for term life insurance coverage. Universal Life (UL) Insurance Universal life is an adjustable life insurance policy that provides a death benefit and an investment component called cash value. The cash value earns interest at rates that the insurer dictates. The policyholder may accumulate cash value on a tax-deferred basis. They may also be able to withdraw or borrow the cash value funds without the need to pay taxes if they borrow. However, tax may be required if the policy is surrendered. The borrowed funds do not need to be repaid as long as the policy remains in force. However, interest may be charged to the cash value account. Suppose there is a loan balance left when the insured passes away. In that case, the amount will be repaid using the death benefit proceeds, with the remainder being paid to the beneficiary (or beneficiaries). Premiums are also adjustable, within specific guidelines, by the policy owner. Variable Life Insurance Variable life insurance is another type of permanent life insurance. As with other cash value life insurance types, variable life also provides both a death benefit and a cash value component within the policy. The cash value is the "savings" component of permanent life insurance policies, where the policyholder can essentially build up cash in the policy. Variable life insurance differs from other types of permanent life insurance, like whole life, when it comes to the investment options for the cash value portion. Rather than the insurance company choosing the investment type, fund allocations, or rate of return for the cash, the policyholder can choose from a wide array of investments such as stocks, mutual funds, and other types of equities. Because of the tax-deferred growth in a variable life insurance policy, there is potential for the policy holder's funds to compound and increase exponentially, as no tax will be due on the gain unless or until the time of withdrawal. Unlike a whole life policy, variable life insurance policies do not guarantee a minimum cash value, as poor investment performance could potentially diminish the entire amount. Therefore, both previous gains and initial principal could be at risk of loss. Also, the amount of the death benefit on a variable life insurance policy may fluctuate up or down.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 8 Variable Universal Life (VUL) Insurance Variable universal life insurance is a type of life insurance policy that provides both a death benefit and an investment component called a cash value. The policy owner invests the cash value in sub-accounts that the insurance company selects. The policyholder may accumulate cash on a tax-deferred basis and borrow the funds without paying tax on the borrowed gains. However, tax may be required if the policy is surrendered. The funds do not need to be repaid as long as the policy remains in force. However, interest may be charged to the cash value account. Survivorship Life Insurance Survivorship life insurance is a type of policy that covers two insureds. This policy pays the death benefit to the beneficiary(ies) at the second insured's death. These policies are frequently used for estate planning purposes, as taxes may be due upon the second person's passing. This is particularly the case if the two insureds are a married couple, and the survivor was able to inherit all of the first decedent's assets and property free of taxation. A survivorship policy may also be a viable alternative for couples where one of the spouses or partners has a medical issue that could make it difficult (or impossible) to purchase a single life insurance policy. This is because survivorship policies typically provide coverage based on two life expectancies. In turn, it may offer more lenient underwriting, making it easier for the ill spouse or partner to qualify for the coverage. The premium cost of a survivorship life insurance policy is also often less expensive than if the couple were to purchase two separate policies. Indexed Universal Life (IUL) Insurance Indexed universal life (IUL) insurance is a type of permanent policy that provides death benefit protection and a cash value component. Unlike whole life or even regular universal life insurance, which primarily generates low returns in their cash accounts, IUL primarily generates its return based on the performance of one or more underlying market indexes, like the S&P 500. This means that you can boost your returns, possibly even doubling or tripling them compared to other types of permanent life insurance (compared to other "safe" money investments like CDs and bonds). In the case of indexed universal life insurance, when the index (or indexes) being tracked performs well in policy contract years, a positive return is credited to the policy's cash value, typically up to a preset maximum limit. However, in contract years where the underlying index(es) being tracked performs poorly, no loss is incurred in the IUL policy's cash value. Instead, it will be credited with a guaranteed minimum "floor" rate, currently running between 0% and 2%, depending on the policy and the insurance carrier.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 9 Based on your coverage needs, term life insurance may be more appropriate, or a permanent policy may be a more viable option. In some situations, both term and permanent life insurance may be coordinated to cover all types of needs. Because everyone's coverage needs are different, it is recommended that you discuss your particular objectives and goals with an advisor who is well-versed in life insurance planning. Pros and Cons of Permanent Life Insurance Permanent Life Insurance Advantages Permanent Life Insurance Drawbacks Permanent death benefit protection (usually for the lifetime of the insured) Premium is usually higher than a term life insurance policy with the same amount of death benefit coverage Cash / investment value build-up Surrender charges if the policy is canceled, or if more than a set amount of cash value is accessed in the early years of the policy Tax-deferred growth of cash or investment value Premium amount may stay the same throughout the life of the policy (depending on the type of coverage)
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 10 Term Life Insurance versus Permanent Life Insurance Term Life Insurance Permanent Life Insurance For more temporary needs For more permanent needs Lower premium (at least initially) Higher initial premium Fixed "expiration" date Premium usually a fixed amount No cash value Coverage for life Benefit paid at the insured’s death Cash or investment value (which grows tax-deferred) "Rent" versus "Buy" the coverage Can receive benefits during the insured’s life and at death
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 11 Term is a relatively simple form of life insurance. With its pure death benefit protection and no cash or investment buildup, term life insurance is considered a basic type of policy. You can purchase it at a reasonable price for those who are younger and in relatively good health at the time of application. This type of life insurance comes with an "expiration" date—5, 10, 20, or even 30 years. Alternatively, many life insurance companies also offer one-year renewable term life insurance policies. With the latter, the premium amount may go up each year. Term Life Insurance versus Indexed Universal Life (IUL) Many variations of term life insurance are available in the marketplace today. These include: • Level term life insurance • Increasing term life insurance • Decreasing term life insurance • Convertible term life insurance
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 12 Level Term Life Insurance Level term is a type of coverage where the premium is guaranteed to remain the same throughout the contract. Often, the dollar amount of the death benefit will also stay the same during the policy's period or "term." These level term policies differ from many standard term life insurance plans where the premium rate goes up over time. Increasing Term Life Insurance Increasing term is a type of term life insurance policy that will remain in force for a specific time. Over time, the death benefit will increase. People will often purchase increasing term to help their survivors keep pace with inflation and the rising cost of goods and services they may need to buy in the future. Because the amount of the death benefit rises, the amount of the premium on an increasing term life insurance policy will also typically go up. This can help the insurance carrier offset the rising amount of the death benefit coverage.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 13 Decreasing Term Life Insurance A decreasing term life insurance policy is one where the death benefit coverage amount gets lower over time at a predetermined rate. The amount of the premium that is charged on a decreasing term policy will typically remain level through the policy's lifetime, and the coverage reductions usually occur on an annual or a monthly basis. Decreasing term life insurance may not be a good fit for families with needs like debt payoff or income replacement. However, a popular way it is used is for mortgage protection— the coverage reduction schedule can frequently mirror that of a mortgage amortization schedule. Convertible Term Life Insurance Convertible term is a type of life insurance that allows the policyholder to change to a permanent form of coverage. Moreover, they can often do so without going through the underwriting process again and proving their insurability. It is important to note that the premium on the permanent policy will typically be higher than that on the term plan. However, there is no "expiration" date on the permanent life insurance, even as the insured ages and if they contract an adverse health condition that would otherwise render them uninsurable in the future.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 14 Comparing Term with How Permanent Indexed Universal Life (IUL) Insurance Policies Work While term life insurance only pays out a benefit at the insured's death, permanent policies like indexed universal life offer death benefit protection and other benefits that could be used while the insured is still alive. One of the most enticing features of IUL insurance is its cash value growth based on the performance of one or more market indexes, such as the S&P 500 or the Dow Jones Industrial Average. The return for the previous period is calculated in preset policy years, such as the annual contract anniversary. Generally, when the index (or indexes) being tracked performs well in policy contract years, a positive return is credited to the policy's cash value, typically up to a preset maximum limit. The crediting methods that are used with indexed universal life (IUL) insurance may include one or more of the following, and in some instances, a combination of more than one: • Cap(s) • Participation Rate(s) • Spread(s) With IUL insurance, a cap represents the highest growth rate that is credited to the policy's cash value. This is true, even if the underlying index (or indexes) has a substantially high return performance during a given contract year. Therefore, if an IUL policy has a cap of 7%, and the underlying index generates a 10% return for the year, 7% will be credited to the cash value. Conversely, suppose the cap on the 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 period. The 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 is 80%, and the underlying index generates
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 15 10% in a given time frame, then the cash value would receive an 8% positive return (80% of 10% equals 8%). A spread is also expressed as a percentage. In this particular case, a certain amount will be subtracted from the generated return from the underlying index(es). For example, if there is a spread of 4%, and the index being tracked returns 10% in a given contract year, then 6% will be credited to the cash value (10% minus a 4% spread equals 6%). In return for the potential limits on the upside of an IUL policy's cash value, no losses are incurred if the underlying index performs poorly in a given contract year. In fact, with many IUL policies, the cash value is still credited with a guaranteed "floor" minimum rate. 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, and because of that, the value can continue to build up over time. For example, if an investment 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. This is because any time there is a loss incurred, the value must get back to even before it can start generating any gains again.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 16 Investment with Alternating 10% Positive and 10% Negative Returns 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 In comparing those same returns to the funds in an IUL policy, if the underlying market index being tracked returns a gain of 10% every other year for ten years but incurs a loss of 10% in the other five years, the cash value would continue to perform in the positive. In this case, all of your previous gains, along with your principal in the cash component, cannot be lost. Source: The Retirement Miracle. By Patrick Kelly.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 17 IUL Policy with Alternating 10% Positive and 10% Negative Returns 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
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 18 Therefore, the principal protection, even in years where the underlying index performs poorly, coupled with the tax-deferred gains that are allowed in an IUL policy, allows the cash value component to grow and compound exponentially, especially over time, and in turn, to outperform a fully taxable investment (with all other factors being equal). In this case, the funds generate a return on the principal, the previous gains, and the amount of money that would have been paid out in taxes. Building up tax-deferred gains is just one of the tax-related benefits attained with indexed universal life (IUL) insurance. Another benefit is to access tax-free cash from the policy without incurring a surrender or early withdrawal penalty. Typically, any permanent life insurance policyholder is allowed to make withdrawals from their cash value. This can provide some liquidity and a method of receiving some cash in an emergency (and all other avenues have been tapped). In most cases, this can be an expensive way to access funds because there are many charges that you could incur, such as: • Taxes • Surrender Charges • IRS Early Withdrawal Penalty Since the cash value gains on the permanent life insurance policy are tax-deferred, Uncle Sam will eventually want to get his hand on his share of the money. Therefore, any withdrawal that is considered to be a gain will be taxable. If you make withdrawals (or cancel the policy altogether) during the surrender period, you will incur a surrender charge. This type of early withdrawal penalty goes towards compensating the insurance company during the first several years of the contract. Typically, life insurance surrender penalties will last anywhere from just a few years up to 10 years (or more). However, the amount of this charge will usually decrease over time until it eventually disappears.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 19 Example of Life Insurance Surrender Charges and Surrender Period Policy Year 1 2 3 4 5 6 7 8 9+ Surrender Charge % 8% 7% 6% 5% 4% 3% 2% 1% 0% In this instance, if you took a withdrawal from the policy in the 5th year, you would incur a 4% surrender charge. It is important to note that many life insurance policies allow the withdrawal of a certain amount, typically up to 10% per year, without penalty. This is the case, even during the surrender charge period. With that in mind, and because it is "expensive" to withdraw funds from an IUL policy (in turn, reducing the amount of money you have to use from the withdrawal), many policyholders take an alternate route for accessing money from the cash value. This is done by way of a tax-free loan. Although many people do not like to take on debt, a loan from an IUL policy could be quite enticing. One reason is that you'll 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 from the insurance company and not directly from your policy's cash value. Therefore, interest will continue to be generated on the total amount of the cash in your plan. For instance, 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 $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. Even though the insurance company will charge you an interest rate on the borrowed funds, it could 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 in your cash value is also earning a 2% rate of interest, then you have just secured a no-cost distribution. Before you take any type of cash from an IUL policy, it is highly recommended that you work with a specialist to structure that loan provision so it fits all of the required parameters and obtains the best rates possible.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 20 Indexed universal life (IUL) insurance can also provide you with other benefits. While all IUL policies are not similar in features they offer, many will allow you to take advantage of one or more of the following benefits: 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 and/or chronic illness. Long-Term Care Waiver: Many indexed universal life insurance policies will also allow for accessing funds if you require care in a nursing home for at least a certain amount of time (such as 90 days). In turn, this can help you keep other assets intact and used for their originally intended purposes.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 21 You can further "customize" an indexed universal life (IUL) insurance policy by adding one or more riders to it. For instance, depending on the particular plan, some of the common riders that may be 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. Accidental 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 totally disabled, as defined in the policy. The income payment is usually a percentage of the policy's death benefit. For instance, 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 in the future without having to prove your insurability (such as per your health condition). Generally, the guaranteed insurability rider will only allow the purchase option(s) at pre-specified times and 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 lot of life insurance at this time but will need to increase your coverage later. In some cases, IUL policy riders will cost an additional premium amount, and in other instances, there is no added charge.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 22 In addition, let's say you plan to contribute the maximum amount of deposit each year to an Individual Retirement Account (IRA) or an employer-sponsored retirement plan like a 401(k), and you would still like to take advantage of tax-deferred savings. In that case, an indexed universal life (IUL) insurance policy could offer you a solution. IUL plans can even provide you with additional enticing features compared to the tax-free Roth IRA, such as: • 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. • No contribution limit. Also, unlike IRAs and employersponsored 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 that is 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 personal assets, these funds will typically be safe. • The plan is considered to be “selfcompleting.” Because of the death benefit associated with indexed universal life (IUL) insurance policies, these plans are considered "self-completing." This means that even in the event of the unexpected, your survivors will still be protected financially with the policy's income-tax-free death benefit.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 23 Term Life Insurance vs. Indexed Universal Life Term Life Insurance Indexed Universal Life (IUL) Insurance Death Benefit Duration Pre-set period Lifetime (as long as the premium is paid) Cash Value Return None Opportunity to generate an index-linked return, with principal protected in downward moving market environments Tax-Deferred Growth N/A Yes Principal Protection N/A Yes Surrender Charges No Yes Withdrawals N/A Gain is taxable Living Benefits Offered Possibly Yes Tax-Free Loans N/A Yes Premiums Remains set with level term May vary with other types of term insurance policies Flexible (single lump sum or multiple premium payments); however, the premium may increase if the cost of insurance goes up
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 24 Even though term life and indexed universal life insurance policies can both offer some attractive features, one or both of these plans might not be right for you. Therefore, it is essential to know what short- and long-term financial goals you are working towards, and from there, determine whether or not a term and/or an IUL plan will fit as a viable tool to help you get to where you want to go. Working in conjunction with a retirement income specialist who is also experienced in life insurance strategies is highly recommended. You can ask questions, anticipate how the policy may perform over time, and narrow down which plan and premium are best for your needs. The better option: Indexed Universal Life or Term Life Insurance? Disclosure: Content is not personalized financial advice and should not be regarded as a complete analysis of the subjects discussed. Any guarantees mentioned are based on the claims paying ability of the issuing insurance company. Indexed Universal Life Insurance has risks and you should discuss those risks with a professional before you purchase any policy. 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. 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 59½. Insurance product guarantees are subject to the claims-paying ability of the issuing company. Adviser awards do not guarantee future investment success. Working with a highly-rated professional also does not ensure that you will experience a higher level of performance. Please view the Terms of Use for more information regarding the criteria for any awards or ratings noted. If you would like to set up a time to chat with one of our retirement and insurance professionals, please feel free to contact us directly by phone at 800-743-9221 or by sending us an email with any of the questions that you may have by going to [email protected]. We understand that your goals, risk tolerance, and time frame until retirement can differ from everyone else's, which can require you to have your own special and customized plan. We look forward to assisting you with your savings and financial protection needs.
IUL2021IULvTerm [email protected] • indexeduniversal.life • 800-743-9221 25 Indexed Universal Life [email protected] indexeduniversal.life
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