How an Indexed Universal Life Insurance Policy can Help Protect Your Family and Provide for Your Retirement
January 11, 2013 
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One of the most talked about life insurance products available today is Indexed Universal Life (IUL).
An IUL provides the value of a permanent life insurance with the cash value of the policy invested into an account that is “linked” to the performance of a market index like the S&P 500. The value to the insured by linking to the index is exactly like a Fixed Indexed Annuity…in a positive year the account can earn some of the gains of the market-linked index and in a negative year none of the losses. In addition, this cash value account has other benefits including a minimum guarantee on performance and tax advantages.
The IUL cash value can never lose money due to the market-index having a down or flat year. The insurance company guarantees your account value every year and locks in the previous year’s earnings. During the next year, the account value and earnings posted to your account are locked in until the next anniversary date of the policy. At that point if the market has grown from the previous year, then a percentage of the growth is applied to the account value. If the market has fallen, there is no change to the previous years locked in account value.
The cash value and the earnings of an IUL grow tax deferred like a qualified retirement plan (IRA and 401K). This means your account actually benefits from triple compounding earnings… you earn interest on your account principle, you earn interest on your interest, and you earn interest on the money you aren’t paying in taxes on your interest earned.
This money is your money for use at the time you decide to use it; for your children’s college education, purchases, and even retirement income – TAX FREE. Seek out your local Retirement Life Solutions Specialist to determine if an Indexed Universal Life Insurance policy may be an benefit to your family’s protection and an addition to your retirement portfolio.
I've heard that fixed indexed annuities protect your money. This idea about an indexed universal life insurance policy is intriguing. I'd like to learn more. Please write more about it.