Indexed Universal Life Insurance (“IUL”) has been the fastest-growing life insurance product for several years – and its growth continues. According to LIMRA, in the first half of 2017, new annualized IUL premium grew 7 percent – almost double the overall industry average.
IUL products are especially well-matched for a low-interest and uncertain economic climate, offering principle protection and growth opportunity.
IUL interest is credited based on the performance of an index or indexes and offers protection to the cash value. You’ve got upside crediting potential with protection against market downturns. This has proven to be a winning formula, especially in an environment like we are in today with low interest rates and an arguably expensive stock market.
Let’s look at some reasons why a young professional may consider an IUL policy followed by a hypothetical example:
- Provide protection for loved ones
- Supplement income for spouse/partner
- Looking to invest with downside protection
- Looking to have tax-deferred growth with potential tax-free access to money
- Supplement retirement funds
A healthy 33-year-old Male who invests $500 a month until he is 50 years old (Total of $108k invested):
- Age 65 – Projected Cash Value – $371,748 Death Benefit – $558,229
- Age 75 – Projected Cash Value – $707,573 Death Benefit – $757,104
- Age 85 – Projected Cash Value – $1,355,516 Death Benefit – $1,423,292
For more information about IULs and if it’s a right fit for your client, contact your Life Insurance Sales and Marketing Manager today!