FAQ

IUL insurance is a type of permanent life insurance that offers a death benefit along with a cash value component. Unlike traditional universal life policies, an IUL allows you to earn interest based on the performance of a stock market index, such as the S&P 500, while protecting your cash value from market losses.

Your IUL policy’s cash value grows through interest credited based on the performance of a market index. However, the policy includes a floor (typically 0% or 1%) that protects your cash value from negative market returns. Many policies also have a cap, which limits the maximum interest you can earn.

• Tax-Free Death Benefit – Your beneficiaries receive a tax-free payout.
• Tax-Deferred Growth – Your cash value grows without immediate taxation.
• Market-Linked Growth Potential – Earn interest based on an index while avoiding direct market risk.
• Flexible Premiums – Adjust your premium payments based on your financial situation.
• Access to Cash Value – Borrow against your cash value tax-free for various financial needs.

Your IUL policy is designed with a zero floor to prevent cash value losses due to negative market performance. However, policy fees and insurance costs could reduce your cash value if not properly managed.

An IUL policy allows you to build cash value over time, which you can access through tax-free policy loans or withdrawals. Many people use this strategy to supplement their retirement income without affecting their taxable income levels.

IUL insurance is ideal for individuals looking for:

• Life insurance coverage with potential cash value growth
• A tax-efficient way to build wealth
• Flexible premium payment options

Whole life insurance is a type of permanent life insurance that provides lifelong coverage and a guaranteed death benefit. It also includes a cash value component that grows at a fixed rate over time.

You pay fixed premiums, and a portion of those payments goes toward building cash value. This cash value earns interest over time and can be accessed through loans or withdrawals while you're alive. The policy remains in effect as long as premiums are paid.

• Lifelong Coverage – The policy never expires as long as premiums are paid.
• Guaranteed Cash Value Growth – Your cash value grows at a steady rate.
• Fixed Premiums – Your monthly or annual payments remain the same.
• Tax Advantages – The death benefit is tax-free, and cash value grows tax-deferred.
• Dividend Potential – Some policies from mutual insurance companies pay dividends that can be used to increase cash value, buy additional coverage, or reduce premiums.

Yes! Whole life policies allow you to take tax-free loans against your cash value. However, unpaid loans and interest will reduce your death benefit.

Whole life insurance is primarily designed for financial protection rather than high investment returns. However, it offers stable growth, tax advantages, and guaranteed lifetime coverage, making it a great option for long-term financial planning and wealth transfer.

Whole life insurance is ideal for individuals looking for:

• Lifetime protection with fixed premiums
• Guaranteed cash value growth
• A safe, tax-efficient wealth-building strategy
• Estate planning or leaving a financial legacy

Term life insurance is a simple and affordable life insurance policy that provides coverage for a set period (e.g., 10, 20, or 30 years). If the policyholder passes away during the term, their beneficiaries receive a tax-free death benefit.

You choose a coverage amount and a term length. If you pass away within that term, your beneficiaries receive the payout. If the term ends and you’re still alive, the policy expires unless you renew or convert it to a permanent policy.

• Affordability – Term life insurance is the most cost-effective way to get high coverage.
• Simple Coverage – Provides financial protection without complex investment components.
• Fixed Premiums – Your payments stay the same for the duration of the term.
• Customizable Terms – Choose coverage lengths that match your needs (e.g., until kids are grown or a mortgage is paid off).

If your term policy expires and you still need coverage, you may have options to:

• Renew the policy (often at a higher premium).
• Convert it into a permanent policy (depending on policy terms).
• Purchase a new term policy.

Term life insurance is ideal for:

• Young families needing affordable financial protection
• Homeowners with a mortgage
• Business owners covering key-person insurance needs
• Anyone wanting high coverage at a low cost

• Term Life provides coverage for a set period, with no cash value, and is more affordable.
• Whole Life provides lifelong coverage, builds cash value, and has higher premiums.