Life Insurance

Indexed Universal Life Insurance

Our team can help you learn

What is an IUL?

An indexed universal life (IUL) insurance policy is an insurance policy that comes with many benefits. Yes, they provide a death benefit like any other life insurance product. However, policyholders may also earn a reasonable rate of return** on their max-funded IUL. This is because the product’s interest rate is based on an index (hence the term “indexed” universal life insurance.)

LEARN ABOUT AN IUL FROM OUR TRUSTED EXPERTS
Mature couple discussing what is an IUL and if it is the right life insurance policy for them

What is an IUL and How Does it Work?

An IUL policy is typically “max-funded.” This means that the total life insurance premium is paid upfront. This way, the insurance company keeps your money protected. The policy is linked to an index, but your money isn’t invested in the market directly. When the index is on an upward trend, your policy will grow in value, but when it’s on a downward trend, your money isn’t lost.

Asian family -- mom, dad, son + daughter, enjoying a stroll through the countryside while discussing what is an IUL

How do IULs Work

When you pay your full premium to fund an IUL, some of that money goes to paying for life insurance coverage. After that, minus fees, the rest of the money is your cash value. You may earn an interest rate on this money because it is linked to an index.

You may have the option to select more than one index. This spreads the potential rate of return, rather than just relying on the performance of one index. There’s a lot of flexibility when it comes to insurance products such as IULs in contrast to typical retirement accounts. Get in touch with us to learn more about these different options.

Man in blue shirt building a pyramid with blocks that represent the different types of retirement plans and benefits

IUL Benefits

As is expected for life insurance, an IUL provides a tax benefit directly to your beneficiaries when you pass away. However, you can also take money from an IUL while you’re still alive as a source of income!

Benefits of an IUL as opposed to other sources of retirement income include:

  • Tax laws function differently for an IUL (but be sure to consult a qualified tax advisor about this)
  • There are no RMDs (required minimum distributions)
  • Your value is not affected by the fluctuations of the stock market
  • You can fund your policy all at once
  • There is no contribution limit, which may be very helpful if you’ve already maxed out your retirement accounts

IULs come with a lot of different options, and you should get educated on all of them in order to truly consider if one is right for you. Contact us today! We can explain to you what an IUL is and if it might be the right fit for you.

We believe in safety first, keeping your strategy simple, and earning a reasonable rate of return**

Contact Info

Our Company

Offices

  • Baton Rouge
  • Mandeville

4720 Bluebonnet Blvd, Suite A
Baton Rouge, LA 70809

1070-B West Causeway Approach
Mandeville, LA 70471

*Proceeds from an insurance policy are generally income-tax-free, and if properly structured, may also be free from estate tax. Income-tax-free distributions are achieved by withdrawing to the cost basis (premiums paid), then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value, and reduce the death benefit, or cause the policy to lapse. This assumes the policy qualifies as life insurance and is not a modified endowment contract. The Host and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. This content is not intended to serve as the basis for any investment or purchasing decisions, nor does it recommend or involve the purchase, holding, or sale of a security.  All figures herein are hypothetical and for illustrative purposes only to explain general concepts.  No figure is to be relied upon as being accurate nor a guarantee or projection and is meant only as a partial overview of some relevant features and benefits of general insurance products that may be in the marketplace, and whose availability will be dependent on the State of residence of the consumer, and their individual suitability for the product they are wanting to purchase. Where insurance products are mentioned, any and all guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

IMPORTANT CONSUMER INFORMATION
This site is for informational purposes only and is not intended to be a solicitation for or offering of any product or investment. The offer for sale of an insurance product may only be conducted in a state where the agent is licensed and the product is approved for sale. The providing of investment advice relating to securities may only be done by a properly licensed individual operating through a licensed affiliate entity, unless otherwise exempt. Comments about past performance are not to be construed as a guarantee or assurance of future performance. This website may contain concepts that have legal, accounting and tax implications. We do not provide specific legal or tax advice, nor promote, market or recommend any tax plan or arrangement. Consult a tax/legal professional for guidance with your individual situation. No representations are made as to the accuracy or completeness of the information contained herein or any information contained in any link provided herein, nor does a consumer visiting the web site create an agent-client relationship.

By contacting Dustin Mitchell LA Ins Lic #332325/Mitchell Financial Group, LLC LA Ins Lic #637004 you may be offered information regarding the purchase of insurance products, including fixed index annuities and life.