Life Insurance
Indexed Universal Life Insurance Never Has a Negative Return!
Indexed Universal Life (IUL) is designed as a permanent cash-value life insurance product that is designed to outperform Whole Life and Universal Life without the catastrophic downside risk. In fact, zero downside risk! IUL policies are linked to major market indexes like the S&P 500 or a foreign index or a combination thereof, but your money is never in the market. Most policies have a guaranteed rate and the non-guaranteed rate which is tied to the market index you choose. For example, if the market index returns a negative 30% for the year, your downside protection within the IUL policy will protect you from these losses. However, you also benefit from any positive market returns each year. Never a negative return is a powerful way to build a retirement account! All the up side with no downside risk! Depending upon the carrier, the guaranteed return on these policies is usually 3% while the cap each year is around 15%.
Ginn Insurance considers every situation unique when building a Indexed Universal Life Insurance Policy. Whether you’re looking for a policy for your children or you’re in your 20’s or 30’s and beginning to save for retirement, we’ll build you a custom policy from a top rated company. We’ll search the market for you and build a unique policy that meets the guidelines and performance you’re searching for! Contact us for further information or list your data on our life insurance form and we’ll search the market for a policy that matches your needs.
| Tax Deferred Investments: 401(k)'s, SEP IRA's, Traditional IRA's, etc. | Versus | Indexed Universal Life Insurance |
|---|---|---|
| No annual profit "Lock-In" | Annual "Lock-In" of profits on Anniversary date. | |
| No guaranteed floor. | Guaranteed floor of 0-3% depending upon carrier. | |
| Average Returns | Make sure you know the difference between these. This is a critical investment principal. | Real Returns |
| Triggers taxation of up to 85% of Social Security Income upon withdrawal (Tax trap set by Uncle Sam) | Tax free income at retirement and no impact on Social Security Income | |
| No Death Benefit | Death Benefit | |
| 100% Market Risk (you absorb market risk) | No Market Risk (carrier absorbs market risk) | |
| Higher taxes in 20-30 years which increases your tax bill. | No additional taxes at Retirement | |
| Limited Funding | Unlimited Funding |
|
| Can Lose Principal | Can’t Lose Principal | |
| Wall between You and Your $$$ Until Retirement | Access to your $$$ at any time without penalty | |
| 10% Access Penalty under age 59 1/2 | Loans repaid on your schedule and the ability to pay yourself on your loans. | |
| Negative Returns (Disaster for Retirement) | No Negative Returns. | |
| No more "Open Enrollment" and dealing with a new set of mutual fund that are designed to "Out Perform The Market" | No wondering if you're in "The Best Fund" | |
| Yearly Fees of 3% to 5% (if you're lucky) which are compounding and hidden in fine print. Constant enrollment issues, administration or participation requirements and tests. | Purchase a policy and you're done! |
| 10% Decline | Requires | 11.1% Gain to Break Even |
| 15% decline | Requires | 17.7% Gain to Break Even |
| 20% decline | Requires | 25% Gain to Break Even |
| 25% decline | Requires | 33.3% Gain to Break Even |
| 30% decline | Requires | 42.9% Gain to Break Even |
| 35% decline | Requires | 53.9% Gain to Break Even |
| 40% decline | Requires | 66.7% Gain to Break Even |
| 45% decline | Requires | 81.8% Gain to Break Even |
| 50% decline | Requires | 100% Gain to Break Even |
| 60% decline | Requires | 150% Gain to Break Even |
| 70% decline | Requires | 233.3% Gain to Break Even |
| 90% decline | Requires | 900% Gain to Break Even |
