How Insurance Works

What Is (IUL) Indexed Universal Life Insurance?


Indexed universal life insurance. Sounds complicated, right? However, once you break it down, indexed universal
life insurance, or IUL, is a great product that can help you when you may need it most. First things first, IUL provides death benefit
protection. What does that mean? When you die, your beneficiaries, or those
you’ve decided to leave your life insurance to, can receive generally tax-free money to
help cover funeral expenses, final costs, income replacement, or whatever they may need
to keep their current lifestyle when you’re no longer living. After all, that is the primary purpose of
life insurance – to provide a death benefit to your loved ones. But what makes IUL unique, is its ability
to accumulate cash value that is influenced by the growth of a stock market index, you
know, like the S&P 500, or the Dow Jones, without the risk of actually investing
in the stock market. Confused? Let’s slow that down a bit. Cash value accumulates in what we call an
index account. Part of your premium pays for the policy’s
death benefit, the rest can be allocated to the index account. The account grows with the upward movement
of a stock market index, while being subject to a floor and a cap. In simple terms, the floor is a minimum interest
rate, and the cap is a maximum interest rate. It’s not an investment in the market, so
your policy is protected if the market goes down. Cash value can be used to help supplement
retirement income, pay off a mortgage, provide a college education, or really, anything you
want. In addition to the death benefit and cash
value, IUL also offers living benefits, or access to the death benefit proceeds, while
you’re living. Midland National provides a full portfolio
of competitive IUL products that can meet your needs, both while you’re living and
after you’re gone. Talk with your financial professional today
and find out which IUL product is right for you.


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