IUL is a type of permanent life insurance with a death benefit and a cash value account that can earn interest based on a stock market index.
The cash value can increase based on the performance of a selected market index, such as the S&P 500. There’s usually a cap on gains and a guaranteed minimum interest rate.
Yes, you can borrow or withdraw from the cash value, but unpaid loans or withdrawals may reduce the death benefit.
Yes, the cash value grows tax-deferred, and the death benefit is typically paid out income tax-free to beneficiaries.
IUL policies allow flexibility in premium payments and the ability to adjust the death benefit as your needs change.