Transcript:

The Power of IUL

In your busy life, financial independence can seem like an impossible goal. And retirement may not be top of mind, because it seems so far away.

In fact, you may not have thought much about how you want to spend your retirement years. Though you probably know you don’t want to run out of money. And you’d like to maintain your current lifestyle.

You probably also know that social security alone won’t be enough to take care of replacing the lifestyle you have today.

Like many people, you may want more control, flexibility and options for your financial future.

And you may have access to a 401(k) or other retirement plan. And that’s a great first step toward saving for your future. However, it’s important to understand there are limits with qualified plans, like 401(k)s. There are limits on how much you can contribute annually. And there are restrictions on when you can access your money without penalties.

And when you do take your money out of a qualified plan, the money can be taxable to you as income.

That’s why it’s smart to look at other ways to supplement your existing retirement savings plans now.

A properly funded indexed universal life insurance policy can help you supplement your current retirement savings. In addition,it will protect your family and loved ones, if you die before accomplishing all the financial goals you have for them.

Indexed universal life insurance, or I-U-L,puts you in charge of a financially secure future with:

  • Guarantees you’ll never get from the stock market
  • And beneficial tax advantages

An indexed universal life product can be a very effective way to:

  • Supplement your retirement income with policy loans and withdrawals that may be tax free
  • And provide tax-free life insurance benefits to ensure your family or business goals are achieved

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.Here’s an example of how it might work for a 35-year-old man, who wants to retire at 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 older ages –and people who want to retire early, too.

We can craft a solution that fits your specific situation.

Now, suppose this 35-year-old man needs life insurance to protect his family and a way to supplement his retirement income.

He buys an IUL policy with a death benefit of $500,000. And he plans to contribute $6,000 annually until he reaches age 70.

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.

Over the next 35 years, he’ll contribute $210,000 in premiums. And assuming 6.69 percent 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

At age 71, he can 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 interest-free loans than he paid in premiums over 35 years.

By age 90, he’ll have received almost $900,000 in tax-free income. And should he die around this time, he’ll leave his survivors with more than $500,000 in tax-free life insurance benefits.

In fact, throughout all of the accumulation and disbursement years, he’ll get:

  • $500,000 or more of protection for his heirs
  • And the opportunity to take tax-free income through policy loans and withdrawals

MARK ZAGURSKI: You’re probably wondering: How is this possible?

And the answer is simple. IUL’s unique power lies in how it credits interest to the cash value.

Interest is tied to the performance of an index in the stock market, like the S&P 500. But the money is not directly invested in the stock market.

Interest is credited in annual point-to-point segments. Each year, the percentage, or amount of change from the previous year, is calculated, based on the performance of the index.

If the result is positive from the previous year, index interest is credited to the cash value, based on your selected participation rate and cap.

The cap is the maximum rate credited to your policy.

If the result is negative from the previous year, your cash value will be protected by the minimum guaranteed rate, or floor, which is zero percent.

An IUL policy can help diversify and balance the risk of your financial portfolio.

As part of your financial strategy, it can help you protect your family and give you the opportunity to supplement your income when you retire.

It may be a good plan for you if you’re concerned about:

  • Providing for your heirs when you die
  • Having enough money to support your lifestyle in retirement
  • Potential market volatility now and down the road
  • An uncertain economy and inflation
  • Taxes going up

Indexed Universal Life can be a safe, smart way to supplement Social Security and your current retirement savings plans, such as traditional or Roth IRAs, Mutual Funds, CDs, deferred annuities and qualified plans.

It can help you financially protect your loved ones and give you the opportunity to grow cash value for your retirement.

There’s a good reason so many people are turning to this unique solution to solve their financial goals. And you owe it to yourself to see how this could work for your own personal situation.

As part of a sound financial strategy, an indexed universal life policy can help you take on whatever the future brings.

It provides a death benefit to help replace income and pay the bills when you die.

And it offers unique potential for you to build substantial cash value you can use as additional income when you retire.

Your money can grow tax deferred through the years. And when the policy is designed properly, distributions and the death benefit won’t be taxed.

It’s important to consult with a professional agent, who understands how to structure a solution like this properly. Structured properly, an Indexed Universal Life policy can be the most efficient way to solve your insurance and savings needs.

For more information on the power of indexed universal life insurance—and to have a personalized example tailored to your unique goals and objectives—please call or email your Mutual of Omaha agent/producer today.