Protect Your Family. Build Cash Value. Create the Potential for Tax-Free Retirement Income.^†

Why Choose IUL? 10 Compelling Reasons

Below are 10 compelling reasons why interest in this strategy continues to grow year after year.

IUL vs. Traditional Investment Options

A Major Retirement Concern: Running Out of Money

One of the biggest challenges in retirement is making your savings last while generating enough income to maintain your lifestyle.

Traditional IRAs, SEP IRAs and 401(k)s generally provide tax-deferred accumulation, but withdrawals are generally subject to income taxes. Roth IRAs can provide qualified tax-free withdrawals. A properly structured Indexed Universal Life (IUL) policy may provide tax-advantaged access to accumulated cash value through policy withdrawals and loans, along with permanent life insurance protection.

$675,000: What Could It Mean for Retirement Income?

A hypothetical comparison starting at age 35.

Suppose a 35-year-old sets aside $625 per month ($7,500 per year) for retirement and reaches age 66 with approximately $675,000.

The $625 monthly contribution is used in this comparison to align with the 2026 annual IRA contribution limit of $7,500 for an individual under age 50. Contribution limits are subject to change, and Roth IRA eligibility is also subject to income limitations.

Now comes the important question.

How Much Retirement Income Could $675,000 Provide?

For comparison purposes, assume each strategy begins retirement with the same $675,000 and earns an assumed 6.69% annually during retirement.

Why Is There Such a Difference?

Traditional IRA / 401(k) / SEP

Withdrawals from a traditional IRA, traditional 401(k), or SEP are generally taxable as ordinary income. Assuming a 20% effective federal income-tax rate, approximately $78,125 would need to be withdrawn to provide $62,500 after federal taxes. At the assumed 6.69% annual return, $675,000 would support those withdrawals for approximately 13 years.

Roth IRA

Qualified Roth IRA distributions are generally federal income-tax-free. Therefore, only $62,500 needs to be withdrawn to provide $62,500 of spendable income. Under the same assumed 6.69% annual return, $675,000 would support $62,500 annual withdrawals for approximately 20 years.

Maximum-Funded Indexed Universal Life (IUL)

A properly structured IUL can provide access to policy values through withdrawals and policy loans. When structured and managed appropriately, these distributions may be received without current federal income taxation. Based on the carrier's current illustration and its illustrated assumptions, $675,000 of policy accumulation value may support approximately $62,500 per year of illustrated policy distributions for life while maintaining life insurance protection.^†

Same Starting Value. Very Different Retirement Outcomes.

• Traditional IRA / 401(k) / SEP: about 13 years of $62,500 after-tax income.*
• Roth IRA: about 20 years of $62,500 tax-free qualified distributions.*
• IUL: $62,500 annually illustrated for life, subject to policy performance, loans, charges and other assumptions.^†

See What a Maximum-Funded IUL Could Look Like for You

Your results will depend on your age, health, premium, policy design and the insurance carrier's current illustrated assumptions. Request a personalized, no-obligation IUL illustration.

What Happens If the Market Drops 30%?

Here's the mathematics many people don't think about until they're close to retirement. If you have $500,000 and your investment loses 30%, you now have $350,000.

How much does $350,000 have to grow to get back to $500,000? Not 30%.

42.9%

That's before considering retirement withdrawals. If you're also taking money out for living expenses while the market is down, recovering can become even more difficult. This is one reason sequence-of-returns risk matters.

An IUL Approaches a Negative Index Year Differently

An IUL isn't directly invested in the stock market. If the applicable index falls substantially during a crediting period, the indexed-crediting strategy generally doesn't credit that same negative market return. Instead, the contractual index-crediting floor applies.

• Market index down 10%? The policy doesn't simply receive a −10% index credit.
• Market index down 20%? The policy doesn't simply receive a −20% index credit.
• Market index down 30%? The policy doesn't simply receive a −30% index credit.

That's an important difference. A crediting floor does not mean the policy's cash value cannot decline. Cost of insurance, policy expenses, withdrawals, loans, loan interest, and other charges can reduce policy values. But the policyowner isn't directly absorbing the negative return of the underlying market index.

The Years Immediately Before and After Retirement Matter

A major market decline when you're 35 can be uncomfortable. A major market decline when you're 65 and beginning retirement withdrawals can be a completely different problem. You're no longer simply waiting for the market to recover. You're taking money out at the same time. Selling investments after a significant decline means fewer assets remain to participate in a future recovery. That's why protecting against negative index crediting can become particularly attractive as retirement gets closer.

Is IUL Too Good to Be True?

At first glance, the combination of potential retirement income, permanent life insurance, living benefits and protection from negative index performance can sound too good to be true.

That's why the decision shouldn't be based on promises. The actual insurance-company illustration lets you see the assumptions, policy charges, guaranteed values and nonguaranteed projected values for yourself.

The Internal Revenue Code provides life insurance with a combination of tax advantages that many other financial products do not provide together, including tax-deferred cash-value growth, generally federal income-tax-free death benefits, and potential tax-advantaged access to cash value through properly structured policy withdrawals and loans.

An IUL isn't right for everyone. But for someone who needs permanent life insurance, has sufficient time to accumulate cash value, can consistently fund the policy, and values protection from negative index performance, it may be worth considering as part of a long-term retirement strategy.

Call 877-571-1980 for a free, no-obligation personalized illustration and see the actual numbers for yourself.

Is IUL Right for Your Retirement Strategy?

IUL is particularly well-suited for:

• High-income earners looking to supplement retirement savings beyond 401(k) limits
• Business owners seeking tax-efficient retirement and succession planning
• Business owners who want a strong retirement for themselves without having to fund plans for their employees
• Individuals concerned about market volatility who want growth potential without downside risk
• Those wanting financial flexibility throughout life, not just after age 59½
• Parents and grandparents who want to leave a tax-free legacy
• People with 15 or more years before they retire that can save $300 or more per month
• People in good health, approval depends on meeting the carrier's underwriting requirements
• People who want to sleep better now and during their retirement years

IUL is not well-suited for:

• People who are uninsurable. They cannot get an IUL and should consider a Roth IRA
• People who live paycheck to paycheck to pay for the essentials, with nothing left over
• People who can only fund their 401(k) enough to take advantage of the employer contribution
• People with less than 15 years to retire, unless the policy is substantially funded
• Someone who cannot consistently afford the premium

Like any financial strategy, it's not for everyone, but for many people, it can be a powerful and reliable part of a retirement plan.

^† Tax-free retirement income via policy loans requires the policy to remain in force and be properly structured under IRC Section 7702. Withdrawals beyond cost basis or a lapse of the policy may trigger ordinary income tax. Not tax or legal advice; consult a qualified professional.