Should I Put my Money in an Indexed Universal Life?
Should I invest in Indexed Universal Life?
My name is Justin Corpus, and I’ve been working with Indexed Life Insurance and Whole Life products for almost ten years. My team and I break down these plans in the following blog.
Is an Indexed Universal Life Insurance (IUL) Plan a Good Investment?
An IUL is a tool to grow money in a cash account. That account is linked to a market index and can earn above-average returns, especially in tough economic states.
Can I Lose Money in an Indexed Universal Life Insurance Policy (IUL)?
There is no downside to IUL’s. You cannot lose money. Your account may not grow due to your investments not performing well, but it will not decline in value. Average return rates have exceeded the average return in the stock market historically.
Is Indexed Universal Life Insurance (IUL) Better Than a 401(K)?
It depends on your situation. If you receive a 401k through your employer and they are matching your contributions, then you should continue to max out your 401k. All retirement plans have limitations, so we suggest exploring and speaking to a financial advisor to set yourself up for success.
Does it cost anything to get an IUL?
An IUL’s cost directly correlates to how your plan is set up. Are you looking to pull money out of your IUL to invest? Or are you looking to let your money sit in an IUL to grow over time? These factors will influence the cost of your premium.
Why does an IUL have a premium?
An IUL technically sits as a life insurance plan, hence why it has a premium. The amount is kept low compared to its benefits as far as flexibility for taking money out and acting as life insurance.
Is IUL Better Than Your Whole Life?
Whole life insurance is a similar but a different product than an IUL. Each has a specific use, and one can be more beneficial than the other depending on your financial situation. Speak to your financial advisor to explore which is better for you. Our trained staff can assist you every step of the way.
The Bottom Line
Everyone has different financial goals and is at a different place on their journey to financial freedom. IULs and Whole Life insurance can be greatly instrumental in helping you achieve your goals, but something else may work better for you.
The great thing about both plans is that they carry a death benefit while being tools for tax-free retirement. Schedule a FREE consultation with one of our Financial Advisors, and they will help you structure your plan for wherever you are in your financial journey.
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