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Buildings from Below

Indexed

Universal Life

Indexed Universal Life (IUL) insurance policies offer a variety of benefits, which can make them an attractive option for individuals seeking life insurance coverage combined with potential cash value growth. Here are some benefits of an Indexed Universal Life insurance policy:

1

Death Benefit Protection:

Like other life insurance policies, IUL provides a death benefit that pays out a tax-free lump sum to the beneficiaries upon the insured's death. This benefit helps provide financial security to loved ones in the event of the insured's passing.

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4

Downside Protection:

While IUL policies allow policyholders to participate in market gains, they typically come with a downside protection feature. This means that even if the market index declines, the policyholder's cash value will not decrease but rather remain unchanged or slightly increase due to a guaranteed minimum interest rate.

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7

Supplemental Retirement Income:

The cash value accumulated in an IUL policy can be accessed during retirement to supplement your retirement income. This feature can be particularly valuable if you've maxed out contributions to other tax-advantaged retirement accounts like IRAs and 401(k)s.

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2

Cash Value Accumulation:

One significant advantage of an IUL policy is the potential to accumulate cash value over time. A portion of the premium paid goes towards a cash value account, which grows based on the performance of a selected market index, such as the S&P 500. This allows policyholders to potentially build a cash reserve that can be accessed during their lifetime

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5

Tax Advantages:

The cash value growth in an IUL policy has the potential to grow on a tax-deferred basis. This means that policyholders are not required to pay taxes on the gains as long as the funds remain within the policy. Additionally, policyholders can access the cash value through policy loans, which are generally not taxable as long as the policy remains in force

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8

Estate Planning:

IUL policies can be used as an estate planning tool, allowing individuals to pass on a tax-free death benefit to their beneficiaries. This can help provide liquidity to cover estate taxes or other financial obligations, ensuring a smooth transfer of wealth.

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3

Market Participation:

IUL policies provide policyholders with the opportunity to participate in market gains without being directly invested in the stock market. The policy's cash value can be linked to an index's performance, enabling potential growth based on the upward movement of the market.

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6

Living Benefits:

IUL policies can offer Living Benefits, which is cash value you can use during your lifetime to pay for such things as Nursing home or Long Term Care expenses, as well as chronic or critical illness expenses.

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Consulting with a financial professional or insurance advisor is recommended to determine if an Indexed Universal Life policy aligns with your specific financial goals and circumstances.

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