An Example of How IUL Can Work
See how an indexed universal life (IUL) insurance policy can help supplement retirement savings goals.
An Example of How IUL Can Work for Retirement
[video: Text appears on the screen that reads "Indexed Universal Life Insurance From United of Omaha Life Insurance Company" accompanied by the Mutual of Omaha logo. The screen then reads "An Example of How IUL can Work for Retirement".]
If you’re looking for more control over your financial future – and a great way to supplement your retirement or other savings goals – indexed universal life insurance is an excellent option.
[video: An illustration appears of a male silhouette above a bubble labeled "Age 35" with an arrow pointing from it to another bubble labeled "Age 70".]
Here’s an example of how it might work for a 35-year-old man, who wants to retire at age 70. Now, that may not be you. And it’s important to know that indexed universal life has a lot to offer people in their 40s, 50s and other ages – as well as people who want to retire early. We can craft a solution that fits your specific situation.
[video: Text appears that reads "custom solution" next to a man in business attire speaking to the camera. This is followed by an illustration of a mother, father, and child within a shield.]
Now, suppose this 35-year-old man needs life insurance to protect his family and a way to supplement his retirement income.
[video: An illustration appears of an "IUL policy" document that reads: "$400,000". The document slides across a dotted line, passing 3 sets of text that read "$6,000 annually" until it hits a bubble that reads: "Age 70".]
He buys an IUL policy with a death benefit of $400,000. And he plans to contribute $6,000 annually until he reaches age 70.
[video: Text appears next to the business man that reads "tax-deferred cash accumulations" and "tax-free loans".]
By consistently funding his policy in this way, he can get the potential for tax-deferred cash accumulation plus tax-free loans from the policy value when he retires.
[video: Another $400,000 IUL Policy illustration slides across a dotted line from a bubble that reads "Age 35" to a bubble that reads "Age 70". Above the policy, text that reads "contributions" and a dollar amount increases below it as the document slides across the line.]
Over the next 35 years, he contributes $210,000 in premiums. And assuming 6.69 percent annual interest, by age 70 he’ll have:
- More than a million dollars in life insurance protection
- And the policy’s cash accumulation value will grow to more than $631,000
[video: Another $400,000 IUL Policy illustration slides across a dotted line from a bubble that reads "Age 70" to a bubble that reads "Age 90". Above the policy, text that reads "tax-free supplemental income" and a dollar amount increases below it as the document slides across the line.]
At age 71, he could start taking $50,000 a year in supplemental retirement income through age 100. And as quickly as five years later, it’s possible he’ll have withdrawn more money in loans than he paid in premiums over 35 years.
By age 90, he could receive almost $900,000 in tax-free income. And should he die around this time, he could leave his survivors with more than $400,000 in tax-free life insurance benefits.
[video: Text appears on the screen next to the business man that reads "$400,000 or more of protection" and "tax-free income through policy loans and withdrawals".]
In fact, throughout all of the accumulation and disbursement years, he’ll get:
- $400,000 or more of protection for his heirs
- And the opportunity to take tax-free income through policy loans and withdrawals
[video: Text appears on the screen that reads "Learn More About Indexed Universal Life" and "www.mutualofomaha.com".]