Reasons to supplement your retirement with Indexed Universal Life Insurance
The beauty of life insurance is that it gives you peace of mind to know that your family is protected financially in the event of your untimely death. Indexed universal life insurance policies take it one step further by also providing you with an attractive supplement to your retirement income.
The sales of this product are growing steadily as people discover how attractive the returns are. If you have been looking for a way to supplement your retirement income when the time comes, here are eight reasons to consider indexed universal plans.
01Positive Returns are Always Attractive
Most investments come with risks, and people who were heavily vested in equity, bond and real estate markets over the last decade have realized exactly what those risks entail. With declining portfolio values, people are excited at the prospect of a product that will not decline in value.
You are protected from declining values, so you can rest assured that the product will never become a frustrating loss. This makes indexed universal life insurance more attractive than most other investment options.
02Carriers Cover the Investment Risk
Unlike other investments where you carry the risk, the carriers of indexed universal life insurance plans absorb the risk for you. Bonds and index options are chosen for their stability and proven performance.
If something unexpected happens and a bond defaults, the carrier will bear the loss to protect the customers. Investors who are looking for a safe investment with attractive returns will appreciate this feature.
03The Excitement of High Returns Remains
With normal investments, the party that carries the risk also benefits from any rewards.
Consumers have long dreamed of a program where they can avoid the risk while still reaping the gains. Indexed universal life insurance provides them with that program. An index that performs well over a set period will pay the consumer with interest credits.
Unlike a regular savings account that has zero risk but is matched with low returns, this is one program that allows you to enjoy higher returns while also eliminating your personal risk.
04Life Insurance Included
You need life insurance, but you want to invest in a plan that best suits your financial needs. With indexed universal life insurance plans, you will enjoy all the benefits of life insurance with a plan that also supplements your retirement income.
A solid investment, it can become a vital part of your portfolio.
05Tax-Free Income in Retirement
With IRAs and 401(k) plans, your tax bill is minimized by taxing the income when you are at a lower bracket. However, you don’t have to pay income at all with indexed universal life insurance coverage.
A tax-free cash flow when you retire, it is exempt from the alternative minimum tax, federal, state and even local income taxes. This makes it a very attractive option for anyone who is in a higher tax bracket and hoping to minimize or even eliminate those expenses.
06Insurance for the Rest of Your Life
An unexpected benefit of indexed universal life insurance plans is the ability to stop making insurance payments while still enjoying insurance coverage.
You can maintain valuable life insurance coverage even after you have started receiving cash payments. Talk to your agent about receiving insurance for the rest of life without paying extra money on the contract.
07Guaranteed Return of Premium
While you hope that your family will never have to file a claim on your term insurance policy, you will appreciate knowing the policy is there.
The money is never wasted because it provides your family with an important safety net, but wouldn’t it be better if you could get those premiums back? With indexed universal life, you actually get your premium returned to you.
Talk to your agent about creating a scenario where your guaranteed cash value is equal to the premiums you would pay after a set period of time to assure yourself that the program is completely safe.
08 Make the Product Work for You – Indexed Universal Life Insurance Policies
The interest crediting on index universal life insurance products is typically higher than on other index annuity options.
The insurance companies can do this because their secondary profit source comes from the spread between actual mortality charges and expected mortality levels. This mortality spread generates a fair amount of profit, and you can put that to work for you.
Ideally, you should minimize your insurance levels relative to your monthly premium to get the best deal and effectively have your insurance coverage subsidized by other customers who are maximizing their insurance coverage levels.
There are many benefits to investing in indexed universal life policies, and it can be the answer you have searched for. Once you decide that this is the right choice for you, it’s important to find the right plan and coverage levels for your needs and budget.
Work with an experienced agent who is dedicated to your satisfaction and finding the right program for you.
Interested in Indexed Universal Life Insurance policies? Contact Josh Docktor, and Independent Insurance Agent with Docktor’s Insurance today, 1-888-773-1181