The Power of IUL

There is no one-size-fits-all when it comes to life insurance. Getting your life insurance plan right takes into account a number of factors.

Transcript:

The Power of IUL

[video description: Mark Zagurski speaks to the camera.]

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.

[video: Three text boxes appear on screen that read pension, social security, and savings.]

In the past, people counted on three main sources of income in their retirement. Pension, social security, and whatever they'd managed to save. But it's not that easy today.

Fewer employers are offering traditional pension plans and many companies have reduced or discontinued their retirement plans and your ability to rely solely on social security is in question. Even if benefits haven't been reduced by the time you retire, social security alone was never intended to be enough to pay for the lifestyle you want and deserve.

Today more of the burden of saving for retirement is on your shoulders. It's up to you to look for additional ways to supplement your retirement savings.

[video: A text box appears that reads "Indexed Universal Life Insurance from United of Omaha Life Insurance Company" followed by a text box that reads "Protect family and loved ones".]

A properly funded Indexed Universal Life Insurance policy can help you do just that. In addition, it can help you protect your family and loved ones if you die before accomplishing all of the financial goals you have for them.

[video: Text boxes on screen read "Guarantees you'll never get from the stock market", "beneficial tax advantages", "tax-advantaged loans and withdrawals", and "income-tax-free life insurance benefits".]

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 income-tax-free life insurance benefits to ensure your family or business goals are achieved.

[video: Text box appears above Mutual of Omaha logo that reads "An example of how it can work".]

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 of a man appears with an arrow below pointing from "age 35" to "age 70". ]

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, as well as people who want to retire early.

We can craft a solution that fits your specific situation.

[video: An illustration of a man appears and his wife and child join them. A shield is drawn around them. This is replaced by an illustration of a document that reads "IUL POLICY - $400,000". The document hovers along a dotted line passing $6,000 increments as it nears an illustrated bubble labeled "age 70".]

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 $400,000. And he plans to contribute $6,000 annually until he reaches age 70.

[video: Text boxes appear and read "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: The IUL POLICY document reappears on a dotted line headed towards "age 70" as a counter, labeled "Contributions", above the document increases the dollar amount. Text then appears reading "Death Benefits: $1,000,000" and "Cash Accumulation: $631,000". A new screen appears with the same document moving along a dotted line between "age 70" and "age 90", noting a tax-free supplemental income of up to $900,000 and a tax-free life insurance payout of up to $400,000.]

Over the next 35 years, he contributes $210,000 in premiums. And assuming a 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

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 $400,000 in tax-free life insurance benefits.

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

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 on an 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, indexed 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, the interest credited to your cash value will never be less than the minimum guaranteed rate, or floor, which is zero percent.

An IUL policy can help diversify and balance the risk of your financial portfolio. It can give you more control, flexibility, and options for your financial future.

Like many people today, you may have access to a 401(k) or other retirement plan. And that's a great first step towards 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 money out of a qualified plan, the money can be taxable to you as income.

As part of your financial strategy, IUL 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 insurance 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/producer 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 United of Omaha Life Insurance Company agent/producer today.