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Opportunity risk

Opportunity Risk

While it's important to practice a healthy amount of caution with your finances, sometimes being too cautious can cause you to miss out on more lucrative opportunities. There may be some financial opportunities you don't know about, or you may not be taking full advantage of the ones right in front of you. If your top priority is to make sure you're not missing out on other financial opportunities, these products may be a good place to begin.

 

Indexed universal life Universal life

Life insurance that provides opportunity

Indexed universal life (IUL) insurance is death benefit protection that can also help provide 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 money is not actually invested in the market or in the applicable index. The product is subject to all policy fees and charges normally associated with most universal life insurance.

That's a mouthful, but essentially IUL products can help protect your family and potentially provide cash value at the same time.

Bet you didn't know life insurance could do that.

With an IUL product, the policyowner 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 index credited will not be less than zero percent.

In other words, a North American IUL policy can grant you the opportunity to build cash value without a negative index performance hindering your earning potential. The earning potential is subject to a cap or a maximum interest rate that is used in the calculation of the index credit. The cash value you build may be used in many ways, from college funding1 for your kids, to helping supplement your retirement income.

IUL can also help you prepare for the financial implications of having a serious illness.

In addition to offering death benefit protection and cash value growth potential, IUL products may also include accelerated death benefits. These benefits allow the policyowner to access the death benefit while living.

Available at issue for no additional premium, these benefits allow the policyowner to accelerate a portion of the death benefit should the insured be diagnosed with a qualifying illness, subject to eligibility. The accelerated death benefit payment could be used for bills, making up for missed work due to your illness, family vacations, or in any other way  you choose.2

 

Contact your financial professional to determine if IUL is right for you.

Don’t have a financial professional?

 

Life insurance, plus interest

Universal life (UL) insurance provides the policyowner with death benefit protection along with the potential to build cash value with a declared fixed interest rate.

Get death benefit protection and potentially earn interest at the same time.

Your life insurance premium first pays for insurance and monthly expenses. The remaining amount of money you put into the policy is credited to the cash value, which accumulates interest.

 

Contact your financial professional to determine if UL is right for you.

Don’t have a financial professional?

 

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 to North American Company for Life and Health, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193, telephone (877) 872-0757.

 

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.

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. 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 to North American Company for Life and Health, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193, telpehone (877) 872-0757.

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