DO YOU WANT FINANCIAL FREEDOM FOR YOUR FAMILY?
DO YOU WANT YOUR DREAMS SECURED REGARDLESS OF YOUR HEALTH?
DO YOU WANT YOUR FAMILY’S ABUNDANCE TO OUT LIVE YOU?
You can achieve the above with life insurance. In fact you can achieve it whether you live long or die early through cash value life insurance.
Cash value insurances come in a variety of shapes and sizes, but there are two basic categories – Whole Life and Universal Life. Whole Life has limited uses and is generally outdated and outclassed by Universal Life.
Universal Life or UL is a relatively recent product with some really nifty features. Almost all UL’s have:
- The ability to be accessed tax free.
- The benefit of saving while protecting income from loss.
- Many IUL”s are now sold with living benefits to allow you to access the money prior to death in cases of severe injury or illness.
The UL was designed to be flexible and efficient. As such, the basic UL has developed into a number of different products that target specific goals that consumers have. Most of these differences are based on what happens with the extra cash value in the account. The main variations are the Variable Universal Life, the Indexed Universal Life, and the Fixed Universal Life.
Variable Universal Life
There is a continuum of risk involved in the money growth portion of the UL. The most risky but potentially most profitable is the Variable Universal Life which functions in the market like a traditional investment, this is administered by a licensed investment professional and if done wrong can cost the investor dearly. I have had family who were ill advised to get into a VUL and were lucky to break even on their investment.
Indexed Universal Life
The Indexed Universal Life or IUL is great for young to middle age couples or families who are trying to grow their money. Unlike the VUL, the IUL is indexed off the market and typically has a floor at 0% so if the market tanks the owner does not lose any money. The best IUL’s have a growth ceiling at 8%-12%. Many financial gurus teach that 10-12% is the optimal growth in a good investment. This means that while the IUL is a safer vehicle than m0st traditional investments it is also on par with them for growth potential. Add the ability to access funds tax free and protect your family or business at the same time and the IUL is an ideal money growth vehicle.
Fixed Universal Life
Fixed Universal Life products are the most secure from risk. Some are even sold as guaranteed return of premium. In that sense they operate more like a term that lasts your whole life or if you make use of the cash back they become FREE.
In looking at whether cash value insurance is a good fit for your savings portfolio you should talk with your financial/insurance advisor about what you want it to do for you. If you don’t have a professional insurance advisor, fill out the attached form and I will be happy to meet with you via zoom or in person to evaluate your needs.