This unique life insurance policy includes both a death benefit and a steady retirement income. Learn more about indexed universal life insurance
Navigating Retirement Income Strategies
If you’re planning for retirement, you may be overwhelmed with your options, especially when choosing between insurance products and investment products. When you select indexed universal life, you get the benefits of both.
Indexed universal life insurance is a unique insurance product that offers both a death benefit and allows you to build cash value based on increases in specific stock indexes.
What Is Indexed Universal Life Insurance?
The most important thing to know about universal life insurance is that it’s not an investment product. It can be confusing because its cash value is tied to a specific stock index. Still, it’s actually a life insurance product that includes both a living benefit and a guaranteed death benefit. A life insurance policy like this acts like a savings account where you can put more money into your policy to increase the value of your benefits.
The difference with indexed universal life is that the value of these benefits is also tied to a certain market index like the S&P 500 or the Dow Jones. When these indexes grow in value, your insurance company will add a percentage of that growth to the value of the cash you have in your policy.
Understanding Cash Value
A life insurance policy’s cash value is the amount of money you would receive if you were to cancel your life insurance policy. It’s your money, separate from any fees or costs included in your life insurance premium. You can borrow against this money, use it for retirement, or leave it to your loved ones after you pass.
How Your Cash Value Grows
When you choose an indexed universal life policy, your life insurance policy’s cash value is tied to increases in the market index you select. For example, if the index goes up 10% in a year, your cash value will also go up to the capped amount allowed by your contract. If it goes down, the value of your money won’t decrease. This gives you some exposure to the financial markets but drastically reduces the risk.
Understanding Living Benefits
When you have an insurance plan that offers living benefits, you can use the cash value to pay for your living expenses when you retire. This can be taken out in tax-free loans, or you can withdraw your cash value.
Understanding Death Benefits
When you choose an indexed universal life insurance plan, you’ll have death benefit guarantees. This means that when you die, as long as you have covered your premium, your loved ones will receive a certain minimum amount of money, no matter how old you are when you pass. This amount will grow as your policy accrues cash value but decline when you withdraw or borrow against your funds.
Indexed Universal Life Insurance Pros and Cons
This type of policy allows you to enjoy some of the benefits of investing in the market without some of the risks. However, like all insurance and financial products, it might not be suitable for every person. Still, these plans might be a great addition to a well-rounded retirement income strategy.
An indexed universal life insurance plan offers you a guaranteed death benefit, gives you an asset to borrow against, and allows you to enjoy tax-deferred retirement savings. It also allows you to take advantage of the growth in the financial markets with limited risk.
While your policy won’t lose money if the market declines, you won’t gain any interest for that year. It can be harder to calculate the exact amount you’ll have saved for retirement. That is why it’s always a great idea to diversify your retirement income strategy.
Indexed Universal Life vs. Whole Life
Both indexed universal life insurance and whole life insurance offer a guaranteed death benefit, no matter how old you are when you pass away. This is different from term life insurance that expires when you reach a certain age. The difference between whole life insurance and indexed universal life insurance is that whole life insurance generally offers a fixed interest. Indexed universal insurance policies are tied to the markets, which typically offer a better return.
How to Get a Universal Indexed Life Policy
Step 1: Schedule a Call
Let’s chat about your unique needs and goals you want to accomplish for retirement. Schedule now
Step 2: Review Your Custom Plan
We’ll go over the plan, which has been strategically designed according to your goals that we went over.
Step 2: Refine Your Plan
We’ll work together to update your plan to make the most of your federal benefits.
Step 4: Enjoy Your Retirement
We’re excited to put your plan into action so you can focus on other aspects of your retirement planning.
Let My Guaranteed Income Help You
At My Guaranteed Income, we work with only A-rated insurance companies to provide you with the best tax-free insurance plans and annuities. This allows you to create a steady stream of income to comfortably fund your retirement.
How Much Do Indexed Universal Life Insurance Plans Cost?
We work with only the highest-rated insurance companies to get you the best plan with the best terms and lowest premiums possible. Give us a call to find out how affordable indexed universal life insurance can be.
Enjoy the Benefits of this Quality Life Insurance Solution
If you’re looking for life insurance with living benefits, ask about our indexed universal life insurance policies or any of the other policies we offer. We look forward to helping you get a retirement income strategy that’s right for you.