Indexed universal life insurance
Indexed universal life insurance policies let you have more control over your premium payments and death benefit than some other types of life insurance, while also letting you use the policy’s cash value during your lifetime for a variety of purposes. How you choose to design your policy will reflect your priorities for protection and cash accumulation.
What is indexed universal life insurance?
Indexed universal life insurance is a type of life insurance that offers the potential for cash accumulation based upon market performance, along with a floor on performance that protects the policy’s values from market losses. It differs from other permanent insurance (like whole life) because you have:
- More flexibility with your premiums, including how much and when you pay
- The ability to adjust the amount of death benefit your beneficiaries would receive as your needs change
- The ability to increase the policy’s values based, in part, upon the performance of financial market indices*
All indexed universal life insurance policies offer death benefit protection and the potential to accumulate cash value on a tax-deferred basis.
* Interest linked growth is based in part on the movement of the selected market index and is subject to applicable caps, spreads, and/or participation rates.
** The cash value may still decrease due to the deduction of cost of insurance and expense charges.
*** If tax-free loans are taken and the policy lapses a taxable event may occur. Loans and withdrawals (partial surrenders) from life insurance policies classified as modified endowment contracts may be subject to tax at the time the loan or withdrawal is taken and, if taken prior to age 59 1/2 , a 10% federal tax penalty may apply. Withdrawals and loans reduce the death benefit and cash surrender value.
Indexed universal life insurance can help you:
Your loved ones get a guaranteed, tax advantaged death benefit if you die
Your premiums create cash value that you can access for needs, including retirement
Stay flexible with the ability to adjust your premium amount and death benefit based on future needs