Updated: Jan 19
There are other kinds of permanent life insurance (such as whole life, universal life, and variable life) – but only FIUL has this unique combination of benefits to help address a variety of common financial concerns.
Protection: The death benefit to your beneficiaries is generally income-tax-free.
Accumulation potential: Your policy’s accumulation value may earn interest based on an external index or a fixed interest option (both explained below).
Tax deferral: Your policy’s accumulation value grows tax-deferred.
Flexibility: As long as your policy is properly funded, you can pay premiums when you want and access your cash value through policy loans and withdrawals.
How FIUL insurance works
You pay premiums as you like.
As long as your policy is properly funded, you can pay your policy’s premiums when you want, and in the amount you choose. This can give you the flexibility to address other financial needs or unexpected expenses.
Your accumulation value grows tax-deferred.
Your policy’s accumulation value can earn interest in two ways – at a predictable, fixed rate, or based on the annual positive return of an external market index. When interest is credited, it’s locked in and continues to grow tax-deferred until you take money out of your policy. That gives your accumulation value more compounding potential.
Your accumulation value is protected.
If you choose the indexed interest option, any indexed interest you receive is based on changes in an external index – but you’re not actually participating in the market. That means your accumulation value can’t go down due to market volatility. (However, fees and charges will still reduce the policy’s value.)
You can access your cash value.
Down the road, you can access your policy’s available cash value through income-tax-free loans and withdrawals for any purpose – such as helping fund a college education, supplementing your retirement income, or even helping cover a medical expense. Because loans and withdrawals will reduce your policy’s cash value, you’ll want to carefully monitor your policy’s values and make sure your policy is properly funded so it doesn’t lapse.
Tailor your policy to your needs.
In exchange for an additional cost (and with some restrictions, including underwriting), you can add optional riders that offer chronic illness benefits, premium payment waivers, extra term coverage, and more. Your financial professional can help you determine which rider(s) may make sense for your unique financial needs, and also explain the cost(s).
Leave a legacy.
Your beneficiaries get a death benefit that is generally income-tax-free. It can help cover funeral costs, medical bills, pay the mortgage, replace your income, and even ensure the continuity of a business if you pass away.
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