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Index Universal Life Insurance

A vehicle that helps you build predictable, safe, tax-efficient wealth for the rest of your life.

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Key Benefits

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Safe & Steady

Never risk losing your principal yet still access steady growth within a set range every year, with a cap (typically 9%) and a floor (typically 0%) based on the returns of an index like the S&P 500.

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Protective

Get lifelong coverage with the option to protect you and your loved ones in a variety of scenarios.

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Tax-Efficient Growth

Have the potential to grow tax-efficient wealth by investing your premiums into assets you choose.

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IUL Money Calculator

IUL policies typically allow you to grow a portion of your premiums through allocation to an index. Insurers often offer a growth cap of 9% and floor of 0%. This allows for upside potential with downside protection. Did I mention it’s all tax-efficient?

monthly premium
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DEATH BENEFIT

A death benefit will be associated with the policy based on an individual's age and health.

*Tables and charts are for illustrative purposes only and are not based on any specific policy example. Please reference your specific policy for additional details. All guarantees and contractual obligations are based solely on the claims-paying ability of the issuing life insurance company.

Steady returns and long-lasting protection

Want some extra cash but don't want to sell your stocks or take out money from your retirement or your house? We offer IUL policies that offer a predictable growth trajectory for a portion of your premiums to use for retirement while offering protection that lasts a lifetime.


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FAQs

How does tax efficient cash accumulation work in a life insurance vehicle?

Tax-efficient cash accumulation are only available in permanent life insurance policies, not in term life insurance. The premiums you pay into a permanent life insurance policy will cover the cost of insurance (which provides the death/chronic illness/critical illness coverage) and fees, and the rest is saved and grows in a tax deferred investment account. You can choose how the investment account grows and access the amount tax free after a certain number of years (typically 10-15) for any purpose. There is a penalty for accessing your cash amount before the specified number of years. Here are the tax codes that pertain to the tax-efficiency of life insurance in the U.S.: Death Benefits Policy death benefits are usually paid to beneficiaries income tax-free according to IRC Section 101(a). Benefits paid out before the insured’s death because of chronic or terminal illness are tax free according to IRC Section 101(g)1. Policy Cash Values Cash values can grow within the policy without being subject to taxes according to IRC Section 72. Withdrawals up to the amount of the policy owner’s tax basis are not subject to income tax according to IRC Section 72. Cash values exceeding the owner’s tax basis may be borrowed from the policy income tax free as long as the policy stays in force according to IRC Sections 72 and 7702 Tax-Free Exchanges The owner may exchange an existing for a new one free of income taxes according to IRC section 1035. The owner may exchange a life insurance policy for an annuity free of income taxes according to IRC Section 1035 Overall, life insurance death benefits, healthcare riders, and cash value can be accessed tax-free as long as the guidelines towards saving in the policy are followed appropriately. You can consult an Amplify licensed expert to make sure you are not exceeding the legal amount of cash in your policy to maximize your tax-free returns.

Yes, you may choose the income strategy within the policy. The three available strategies are: Whole life: a fixed monthly interest rate for your cash value that usually lies between 3.5-5%. In addition, these whole life products can produce annual dividends depending on the profitability of the life insurance company. Dividends can be used to reduce premium, can be paid out in cash, or be used to purchase additional insurance thus increasing cash value. This strategy is for policyholders with a conservative risk tolerance. Indexed universal life: crediting to the accumulation value is based on market indexes such as the S&P 500, or other national and international indexes. Returns are subject to caps and/or participation rates. The minimum floor is often zero. This strategy is for policyholders with moderate risk tolerance. Variable universal life: a portion of premiums paid can be invested in sub-accounts offering various crediting options typically based on mutual funds (within the available funds list of that particular carrier). This strategy is for policyholders with high risk tolerance. Most carriers will offer the multiple versions of the three strategies. If you need help finding the best product type for you, please consult with one of our licensed experts to better understand which strategy is best for you.

Permanent life insurance can be a great product to add to your financial plan when used in the right way. Some of the most popular benefits of permanent life insurance include: Lifelong protection Accelerated benefit riders that allow access to your coverage for long term illnesses Tax-deferred growth of cash value Tax-free supplemental retirement income Some protection against creditors for your assets The downsides of permanent life insurance are: More expensive than term life insurance Cash in your policy is a long term cash accumulation strategy and ideally should not be accessed for 10-20 years

Permanent insurance is for individuals and families who have disposable income and are looking to solve one of the below problems in their financial plan:

  • Looking for tax-advantaged accounts to accumulate their savings in. For most people, there is a limit to savings in 401K, Roth IRA, etc.
  • Don’t want their entire portfolio to be subject to market volatility and are looking for an account for steady growth and principal protection.
  • Looking to transfer wealth to their family in a tax-efficient manner.
  • Worried about saving for long-term care.
  • Looking for lifetime life insurance coverage beyond the next 20-30 years.
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