What is a Floor in IUL?
If you’ve been researching Indexed Universal Life insurance, you’ve probably heard a lot about caps—the maximum return your cash value can earn in any given year. But there’s another critical number that often gets less attention despite being equally important: the floor. The floor is your safety net. It’s the guarantee that your cash value […]
Cap Rates in IUL
When you’re looking at an Indexed Universal Life insurance policy illustration, the numbers can look pretty impressive. The agent might show you projections with 7%, 8%, or even 9% average annual returns, and you start thinking about how nicely your cash value will grow over the next 20 years. But buried somewhere in that presentation—often […]
Market Participation Rate in IUL
When you’re shopping for an Indexed Universal Life insurance policy, the sales pitch usually focuses on the exciting stuff—tax-free growth, market-linked returns, downside protection. The agent shows you colorful illustrations with impressive numbers, and you walk away thinking you’ll capture most of the market’s gains without any of the losses. Then you read the fine […]
Tax Advantages of IUL
If you’ve been researching life insurance options, you’ve probably heard about Indexed Universal Life insurance, or IUL. It’s been gaining popularity in recent years, and for good reason. Beyond the basic protection of a death benefit, IUL policies offer some compelling tax advantages that can make them attractive for long-term financial planning. The combination of […]
IUL for Estate Planning
When it comes to estate planning, most people think about wills, trusts, and maybe some tax strategies. But there’s a financial tool that often flies under the radar despite its powerful benefits: Indexed Universal Life (IUL) insurance. If you’re looking for a way to pass wealth to the next generation while minimizing taxes and maintaining […]
IUL for Supplementing Retirement Income
Most retirement planning focuses on 401(k)s, IRAs, and Social Security—all sources of taxable income. But what if you could create a retirement income stream that doesn’t increase your tax bill, doesn’t affect Social Security taxation, and doesn’t push up Medicare premiums? That’s the appeal of using Indexed Universal Life (IUL) insurance for retirement income. IUL […]
What is the 7-Pay Test in IUL?
If you’re considering an Indexed Universal Life (IUL) policy, especially for cash value accumulation, you’ll inevitably encounter warnings about the “7-pay test” and “Modified Endowment Contracts” or MECs. These terms sound technical and confusing, but understanding them is absolutely critical because violating the 7-pay test can permanently destroy the tax advantages that make IUL attractive in the first place. […]
Long-Term Care (LTC) with IUL
Long-term care is one of retirement’s biggest financial threats. The average nursing home costs over $100,000 annually, assisted living runs $50,000+, and even home healthcare quickly depletes savings. Yet traditional long-term care insurance has a major drawback: if you never need care, you’ve paid premiums for decades and received nothing in return. This is where […]
What is an Irrevocable Life Insurance Trust (ILIT)?
If you’re exploring estate planning strategies, especially with significant wealth, you’ve likely encountered the term “Irrevocable Life Insurance Trust” or ILIT. It sounds complicated and intimidating—and honestly, it is more complex than simply buying life insurance. But for the right situations, an ILIT can save your heirs hundreds of thousands or even millions of dollars in estate […]
Withdrawals in IUL
While policy loans get most of the attention when discussing IUL cash value access, withdrawals offer a different approach to using your accumulated funds. Unlike loans that you borrow and can repay, withdrawals permanently remove money from your policy—it’s gone for good, along with its future growth potential. This permanence might sound like a disadvantage, […]