Indexed Universal Life - IUL
Happy Ohana provides valuable insights into financial products like Indexed Universal Life (IUL) insurance and Annuities. Let's dive into what these products are and how they can benefit you.
What is an IUL?
An Indexed Universal Life (IUL) insurance policy is a type of permanent life insurance that offers the opportunity to build cash value over time. With an IUL, a portion of your premium is allocated to an indexed account, which is linked to a stock market index like the S&P 500. This allows your cash value to grow based on the performance of the index, with the potential for higher returns compared to traditional whole life insurance policies.
Benefits of an IUL as a tax-free investment vehicle:
Tax-Free Growth
The cash value in an IUL grows tax-deferred, meaning you won't pay taxes on the gains as long as the policy remains in force.
Tax-Free Withdrawals
You can access the cash value in your IUL through tax-free loans and withdrawals, providing a source of tax-free income in retirement.
Flexible Premiums
IUL policies offer flexibility in premium payments, allowing you to adjust your contributions based on your financial situation.
Death Benefit
In addition to the cash value accumulation, an IUL provides a death benefit that can be passed on to your beneficiaries tax-free.
What is an Annuity?
An annuity is a financial product that provides a stream of income over a specified period, typically in retirement. There are different types of annuities, including fixed, variable, and indexed annuities, each offering unique features and benefits.
Benefits of Annuities:
Guaranteed Income
Annuities can provide a guaranteed income stream for life, offering financial security in retirement.
Tax-Deferred Growth
Similar to an IUL, the growth in an annuity is tax-deferred, allowing your investment to grow without immediate tax implications.
Death Benefit
Some annuities offer a death benefit that ensures your beneficiaries receive a payout if you pass away before receiving the full value of the annuity.
Investment Options
Variable and indexed annuities offer investment options that allow you to participate in market growth while providing downside protection.
Whether you're considering an IUL or an annuity, Happy Ohana Insurance Consultants is here to help you navigate your financial options and secure your future. Contact us today to learn more about how these products can benefit you and your financial goals.
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