IUL basics explained

Indexed Universal Life (IUL) insurance can benefit individuals who are looking for a flexible and tax-advantaged way to save for their future. Here are some specific situations where IUL can be beneficial:

Retirement planning: IUL can provide a tax-deferred source of income in retirement, which can help supplement other retirement savings such as 401(k)s or IRAs.
Estate planning: IUL policies can offer death benefits that can help provide for loved ones after you pass away. The death benefit can also potentially be passed on to your beneficiaries tax-free.
Cash value accumulation: IUL policies can offer the potential for cash value growth through exposure to indexed interest. This can provide a source of funds that can be used for various financial needs, such as emergencies or future expenses.
Tax benefits: The growth of the cash value in an IUL policy is tax-deferred, which can help your savings grow faster over time. Additionally, the death benefit can potentially be paid out tax-free to your beneficiaries.
It’s important to note that IUL policies are complex financial products and that you should carefully consider your investment goals, risk tolerance, and overall financial situation before making a decision. It’s always a good idea to consult with a financial advisor or other professional to determine whether an IUL policy is right for you.

About the Author

Picture of Amy Novakovich, CFP®, CRPC®

Amy Novakovich, CFP®, CRPC®

Amy is a Co-Founder of Nova Wealth Management. She is a native of Wisconsin and moved to Florida in 2004. She earned a degree in finance from Florida Gulf Coast University. Amy is a CERTIFIED FINANCIAL PLANNER™ professional (CFP®) and a Chartered Retirement Planning Counselor® (CRPC®).