Indexed Universal Life Insurance (IUL) is a type of permanent life insurance product that credits interest based in part on the upward movement of a major financial index, subject to certain limitations.
Consider an IUL policy if you:
Are seeking an income tax-free death benefit to support your family or your business.
Are interested in the cash accumulation potential IUL provides.
Might want to access cash value during your lifetime.
How can cash value grow inside your IUL policy?
With IUL, you can decide how your policy earns interest. You can select a fixed interest crediting strategy, indexed crediting strategies or a blend of strategies. When you choose an indexed strategy, your policy cash value earns interest based in part on the upward movement of a major financial index, subject to certain limitations such as caps, participation rates and, if applicable, a strategy expense charge. In an indexed strategy, while you take advantage of the upside potential of indexed interest crediting, your policy values will not go down due to the financial index going down, assuming your premiums are sufficient to cover policy charges. Interest credits for any interest crediting period can be positive or zero.
Here’s an at-a-glance summary of these two types of interest crediting strategies:
A fixed interest rate crediting strategy for consistent growth
The fixed strategy uses a current interest rate declared by the insurance company. The advantage of the strategy is that you know you will always receive a positive interest credit.
An index-based strategy for greater growth potential
Our indexed crediting strategies are designed to offer a range of interest crediting methods based, in part, on the performance of a financial index. This may give you greater potential for growth compared to traditional universal life policies in which the insurance company declares the interest rate, particularly in a low-interest-rate environment.
Not all IUL products are the same
Different IUL policies can have a different focus.
While every IUL policy offers a tax-free death benefit and the ability to earn interest based on the upward movement of a major financial index, some IUL products may put more emphasis on the death benefit, while others provide more opportunity for higher interest crediting to build cash values.
At Global Atlantic, we offer three IUL products that provide different approaches to cash accumulation in addition to an income tax-free death benefit.
IUL benefits at-a-glance
Here are the IUL products we offer and their key benefits
Lifetime Foundation ELITE
A simple foundation with a guarantee. Assuming minimum premium requirements have been met, the death benefit of the policy is guaranteed up to the earlier of age 90, or 40 years depending on the insured's underwriting class.
Lifetime Builder ELITE
Built for growth and for choice with 3 Death Benefit Options, 3 Policy Loans Options, and 6 Indexed Interest Crediting Strategies for cash accumulation potential.
Global Accumulator offers SMART Buy-Up indexed strategies for individuals looking to acquire more accumulation potential, for an additional charge.
Thinking of purchasing an IUL policy?
Talk to your financial professional today to see which type makes sense for you.