Indexed universal life (IUL) policies can be a powerful tool for individuals looking to combine life insurance protection with potential investment growth. With the potential for double-digit returns and tax-deferred growth, an IUL policy can help you in building wealth wisely while protecting your family.
If you are not building wealth wisely, then what is the point of building?
Consider these 3 example:
- If someone paid $6,000 in annual premiums into an IUL policy for 15 years, and earned a 10% annual return, their cash value could potentially be around $220,000. This is just an example and the actual return would depend on the specific policy details and market performance.
- If someone paid $12,000 in annual premiums into an IUL policy for 15 years and earned an average annual return of 10%, their cash value could potentially be around $387,000
- If someone paid $18,000 in annual premiums into an IUL policy for 15 years and earned an average annual return of 10%, their cash value could potentially be around $468,000.
Historical data from LIMRA suggests that IUL policies have generally performed well over the past 30 years, with average annual returns ranging from 6% to 8%. It’s important to note that these returns are not guaranteed and that future performance may be different.
That’s amazing when you take into consideration some of the crisis like the following:
- 1990s Asian Financial Crisis
- Dot-Com Bubble
- 2008 Financial Crisis
- Eurozone Crisis
- COVID-19 Pandemic
These events really make the numbers lower than they actually perform. The market tends to cycle about every 5 to 10 years.
These are just examples and the actual returns would depend on the specific policy details and market performance. Before purchasing an IUL policy, consult a financial advisor and evaluate your options carefully.
IUL policy lets you allocate premiums to cash value account, a benefit over other permanent policies. This is then invested in a stock market index, such as the S&P 500. This provides the potential for higher returns compared to other types of permanent life insurance policies.
In addition to potential investment growth, IUL policies also provide life insurance protection. The death benefit can provide financial support for your family in the event of your untimely death. You can use the death benefit to pay for final expenses, such as funeral costs. You can also provide an inheritance for your loved ones.
It’s important to note that IUL policies come with some risks and limitations. The policy may have caps or limits on returns and fees or charges associated with it. However, with the help of a financial advisor, you can evaluate your options and choose a policy that meets your needs and goals.
If you’re interested in learning more about how an IUL policy can help you build wealth and protect your family, (CONTACT US). We can help you evaluate your options and choose the right policy for your individual needs. With careful planning and a solid financial strategy, you can achieve your financial goals and provide for your family’s future. The future belongs to those that plan for it today!