Indexed Universal Life (IUL) insurance is a life insurance option that combines life protection with the opportunity to accumulate cash value through indexed investments. However, several myths surround IULs, leading to misunderstandings about their functionality and benefits. Today, I want to debunk the 4 most common myths about IULs:
Myth 1: Only older adults need an IUL.
False. While many adults seek life insurance to protect their loved ones, IULs can also be a valuable option for people of all ages. Even children can benefit from an IUL, as it can provide long-term financial protection and an opportunity to accumulate cash value for future educational or financial expenses.
Myth 2: IULs are very expensive.
While IULs may have higher premiums than other types of life insurance, they also offer unique benefits that can justify the additional cost. For example, IULs offer lifelong protection, as well as the opportunity to accumulate cash value with potentially higher interest rates than fixed interest options.
Myth 3: It takes over 30 years to withdraw funds from an IUL.
IULs are flexible and can adapt to the changing needs of the policyholder. While it’s true that withdrawing funds from an IUL may have tax implications and affect the policy’s value, many companies offer options for partial withdrawal or loans against the accumulated cash value. Additionally, some IULs even offer the possibility of using the cash value as supplemental retirement income.
Myth 4: IULs are difficult to understand.
While there may be technical aspects involved in IULs, many companies offer resources and guidance to help clients understand how the product works and how it can benefit them. It’s important to consult with an experienced and trustworthy insurance agent to get detailed information about how IULs work and if they are suitable for your financial and protection needs.
Indexed Universal Life (IUL) insurance is a valuable option for many people seeking long-term financial protection and investment opportunities. Still have doubts about an IUL? My entire team is trained to clarify your doubts, click here.