Indexed Universal Life Insurance never has a negative return!
This is extremely powerful over time. An indexed universal life policy has 2 differences/benefits (many, actually, but here are 2) that no other account can match: an annual lock and a floor that never lets your investment go negative. With those 2 features alone, it will outperform virtually every investment on the market! For parents looking for a great place to save for their kids, this is it. It offers much more than any bank savings account could offer. Plus, it has an additional death benefit attached.
Indexed universal life insurance has been virtually overlooked as ideal investments due to the perception that it is “life insurance.” However, this is only a small part of the power of index universal life insurance. An IUL policy has more life benefits than the actual death benefit that is also attached to the investment.
An IUL policy is designed as a permanent cash value life insurance product that is designed to outperform Whole Life and Universal Life without the catastrophic downside risk. In fact, zero downside risk! IUL policies are tied to major market indices like the S&P 500 or a foreign index or a combination of both, but your money is never in the market. The insurer bears all the risk. Most policies have a guaranteed rate of around 3% and the non-guaranteed rate which is tied to the market index you choose and some actually have no cap. That is, you can get unlimited profit. If the market index is negative for the year, your downside protection within the IUL policy will protect you from these losses. However, it also benefits from positive market returns each year. Never a negative return is a powerful way to build a retirement account at any age! Depending on the company, the guaranteed return on these policies is typically 3%, while the annual cap is around 15%. Some companies have no limits on what you can earn (call us to find out).
Whether you’re looking for a policy for your children or you’re in your 20s and 30s starting to save for retirement, we’ll create a personalized policy from a top-tier insurance company. We’ll search the market for you and create a unique policy that meets the guidelines and performance you’re looking for.