Indexed Universal Life Insurance (IUL)
Indexed Universal life insurance has 4 key features for you and your family which may help make the planning process easier.
- Death Benefit Protection
- Growth Potential
- Downside Protection
- Tax advantages
How your cash value can accumulate
When you make a payment, the life insurance company will allocate the net premium(1) to the index account(s) or the Basic Interest account, based on your instructions. These account options have the potential to earn interest on a tax-deferred basis, increasing the cash value of the policy (2). You may opt to use a cash accumulation strategy that allocates net premiums to more than one account option for the opportunity to earn different rates of interest. You can choose from the following account types.
- S&P 500 index Account
- Global Index account
- Basic Interest Account
Indexed Universal Life gives you the opportunity to grow your policy value through excess interest (earnings above the guaranteed minimum rate)(3) that may be credited to your policy based partly on changes in the major stock indexes below. There are limitations on when you can transfer policy value between account options, but since tranfers are tax free, any earnings are protected from the erosive effect of taxes.
INDEX Descriptions
- S and P 500 Index - Tracks the 500 Large-cap U.S equities in leading industries in the UK economy.
- Euro stoxx 50 Index - Comprised of 50 large cap stocks from leading Europeman blue chip companies.
- Hang Seng Index - One of the most recognized indicators of stock market performance in Hong Kong.
(1) Monthly deductions and index account charges will be taken from the policy to cover the cost of insurance, monthly policy fee, per unit charge, and charges for any additional rider or substandard rating.
(2) Monthly deductions and index account monthly charges will be taken from the policy to cover the cost of insurance, monthly policy fee, per unit charge, and charges for any additional rider or substandard rating.
(3) Guarantees are based on the claims paying ability of the insurance company.