Practicing a healthy amount of caution in your finances is a good thing, but sometimes being too risk-averse may mean you're missing out on more lucrative opportunities. There may be certain financial opportunities you don't know about. Or you may not be taking full advantage of the ones already in front of you. If your top priority is to ensure you're not missing out on greater opportunities, the following product type may be a good place to start.
Indexed universal life (IUL) insurance is death benefit protection that also provides the opportunity to build long-term cash value by earning interest that is linked to the movement of a selected stock market index over a specific period of time. Although growth is based on a stock market index, your premium is not actually invested in the market or in the applicable index. IUL products are subject to all policy fees and charges normally associated with most universal life insurance.
That's a mouthful, but essentially IUL products can protect your family and potentially provide for them in the long run.
Bet you didn't know life insurance could do that.
With an IUL product, the owner can take advantage of the upward movement of a selected stock market index while being protected from a downward performance through the power of the 0% floor, meaning the interest credited will not be less than zero percent.
In other words, a North American IUL policy can offer you the opportunity to build cash value without a negative index performance hindering your earning potential. The earning potential is calculated based on several factors, including a maximum interest rate, the amount of premium allocated to the index account, the floor, and/or a spread rate, which is subtracted from the index growth. The cash value you build may be used in many ways, from college funding1 for your kids, to helping supplement your retirement income.
IUL products can help you prepare financially for the potential high cost of future medical bills.
In addition to offering death benefit protection and cash value growth potential, IUL products may also include accelerated death benefits.
Available at issue for no additional premium, these benefits allow you to accelerate a portion of the benefit, should you be diagnosed with a qualifying illness, subject to eligibility requirements. The accelerated death benefit payment could be used to pay bills, make up for missed work due to your illness, fund family vacations, or in any other way you choose.2
See how life insurance, using the Smart Money strategy, can provide death benefit protection and a way to leverage existing assets to help you avoid an opportunity risk.
North American can help connect you with a financial professional today.
The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.
1. The primary purpose of life insurance is to provide a death benefit to beneficiaries. Because of the uncertainty surrounding all funding options except savings, it is critical to make personal savings the cornerstone of your college funding program. However, even a well-conceived savings plan can be vulnerable. Should you die prematurely, your savings plan could come to an abrupt end. To protect against this unexpected event, life insurance may be the only vehicle that can help assure the completion of a funding plan. In addition to the financial protection aspect of insurance, the tax-deferred buildup of cash values can be part of your college savings plan. Generally, if the policy is not a Modified Endowment Contract then tax-free withdrawals can be made up to the contract's cost basis. Moreover, if the policy is not a Modified Endowment Contract, then loans in excess of the cost basis are also tax free as long as the policy remains in force.
2. The death benefit will be reduced by the amount of the death benefit accelerated. Since benefits are paid prior to death, a discount will be applied to the death benefit accelerated. As a result, the actual amount received will be less than the amount of the death benefit accelerated. An administrative fee is required at time of election.
Texas Residents: Receipt of acceleration-of-life-insurance benefits may affect your, your spouse’s or your family’s eligibility for public assistance programs such as medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), supplementary social security income (SSI), and drug assistance programs. You are advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such a payment will affect your, your spouse’s and your family’s eligibility for public assistance.
Life insurance policies have terms under which the policy may be continued in force or discontinued. Current cost of insurance rates and interest rates are not guaranteed. Therefore, the planned periodic premium may not be sufficient to carry the contract to maturity. The Index Accounts are subject to caps and participation rates. In no case will the interest credited be less than 0 percent. Please refer to the customized illustration provided by your agent for additional detail. The policy’s death benefit is paid upon the death of the insured. The policy does not continue to accumulate cash value and excess interest after the insured’s death. For costs and complete details, call or write North American Company for Life and Health Insurance, One Sammons Plaza, Sioux Falls, SD 57193. Telephone: 877-872-0757.
Indexed Universal Life Insurance products are not an investment in the “market” or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.
Insurance products are issued by North American Company for Life and Health Insurance, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193 Products, features, riders, endorsements, or issues ages may not be available in all jurisdictions. Limitations or restrictions may apply.