Here’s an example. Say you choose the S&P 500 as your financial index and your IUL policy has a “floor” rate of 0 and your “cap” rate is 12%. If the S&P has an 18% return for the year, your account will be credited with the cap rate of 12%. If the S&P returns -5% for the year, your account will be protected with the 0% floor and you will not lose any money.

As for the fixed account, it’s just like the name says, “fixed.” So if your crediting rate is 3.5%, your account will be credited 3.5% interest every year.

Is An IUL Right For Me?

Indexed universal life insurance is a great way to build cash value that you can use while you’re still alive. Not only does the cash value grow, but the death benefit has a chance to grow as well, allowing you to pass on more money to your loved ones.

Your policy’s cash value can be accessed tax free and can be used in any way you see fit. For example, you could use it to pay off your kids student loans, put a down payment on a house or even pay for medical expenses if need be.

There are several different IUL policies, each having their own specific purpose. Some policies build cash value faster than others and some policies have certain living benefits not offered by other IUL’s. That’s why it’s important to talk with a qualified agent that can find the right policy for you!

More Information

If you are considering an IUL or just want more information, please reach out to one of our agents. They are specially trained to assist you in finding the right Indexed life policy for your specific need. Give us a call today at 1-800-594-5393 and see how an Indexed Universal Life policy can go to work for you!