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Fixed indexed universal life
A Fixed indexed universal life (FIUL) provides a death benefit to the policyholder’s beneficiaries in exchange for periodic premium payments to the life insurance company. In addition to a death benefit, your policy may accumulate cash value which grows based on the performance of a market-driven index. You participate in a portion of the index gain, subject to certain limits, such as caps, spreads and participation rates. Policy guarantees offer protection to ensure you will never experience a loss in cash value due to index performance.
We design our products for people who seek death benefit protection, want the possibility of upside potential with no downside risk, and like the flexible options to borrow from the value of the contract.
Benefits of a FIUL
Our Fixed Indexed Universal Life products offer lifelong flexible protection and have these important features:
• Tax benefits such as tax-deferred growth potential on your account value and insurance benefits that are generally not subject to income tax.
• You have the choice of death benefit options – the face amount of your policy, or the face amount plus your account value. Death benefits may be taken as a lump sum or periodic payments. You may adjust the death benefits.
• You can choose from several options for earning interest on your account value: one fixed interest option and additional options tied to market indexes. All of the options have a minimum guaranteed rate.
• You may withdraw money at any time after year one. These withdrawals may be subject to surrender charges.
• You can customize your life insurance policy with a wide array of optional rider benefits to suit your family’s needs. The rider benefits have limitations, restrictions and in some cases additional charges
Personal Accumulation Strategy of FUILs
A personal accumulation strategy using cash value life insurance can provide tax-deferred growth of policy cash values, tax-free income via policy withdrawals to basis and loans, as well as a federal income tax-free death benefit to your chosen beneficiaries. To provide insurance protection, a cash value life insurance policy assesses monthly charges that should be considered when evaluating if a personal accumulation strategy is right for you. Self-funding with a taxable asset may not provide the same level of protection and after-tax growth as a personal accumulation strategy depending on the growth rate of the asset. Below is an example of how selffunding compares to a personal accumulation strategy assuming a 6% rate of growth for both the taxable asset and the life insurance policy’s cash value. May be ideal for those who need death benefit protection but are focused on cash value accumulation for lifetime needs such as supplementing retirement income.
Increasing the death benefit may be subject to additional underwriting approval.
- Flexible death benefit
- Flexible premium
- Cash value grows based on an interest crediting strategy that is tied to changes in a market index such as the S&P 500.4
- Downside protection through minimum guarantees3 to ensure that your cash value will not decline due to decreases in the Index.