Using an IUL for Retirement Stability

An IUL, or Index Universal Life policy, can help provide stability in retirement in ways your investments cannot. You can gain peace of mind by leveraging a few aspects of your IUL policy. This will help you weather market turns, illness, and unexpected expenses in retirement with peace of mind.

Cash accumulation

First, an IUL policy has cash value that accumulates during the life of the policy. Because this value grows the longer you hold the policy, it can create a significant reserver. You can then access this cash through tax-free low-interest loans. Because you can do this without impacting the principal, you can borrow against your own policy while the principal has the potential to continue to grow. This allows you to gain stability in retirement in your existing investments as you ride out bear markets and allow 401ks and IRA to recover into healthier markets.

Living Benefits

You can also gain stability in retirement with an IUL because it provides something called living benefits. As we age we are naturally all at greater risk of a health event. Living benefits enable you to obtain an advance on the death benefit in the case of illness. Depending on the policy, this can be leveraged for critical, chronic or terminal illness. When the related health event occurs, you can exercise this option. This differs from a loan on your policy in that the value you need will be detracted from your death benefit in the event of your passing.

Low-interest loans

Finally, also using the cash value component, you can borrow against the cash value for any type of personal emergency. For example, if you have not yet reached retirement age (59.5) and have a healthy cash value in your policy, you can borrow against it for any type of personal emergency.

If you’re interested in learning more about a policy, please call 512-922-1273, use our contact form, or schedule a time to speak.