What are the disadvantages of IUL?

There are few disadvantages to IUL. First, it does take time for the cash value to grow depending on how much your monthly premium is. Secondly, the cost of insurance could be high depending on your age and health condition. Finally, there is a possibility that in some years you might not earn any interest if the index does not perform well. This means that you will not gain or lose anything in your cash value for that year.

What is the age range to qualify for an IUL?

Anyone from 15 days old and above can qualify for an IUL

Do I need a medical exam before I get approved?

Generally, IUL policies does not require medical exams. However, during the application process, you will need to give HIPPA consent to the insurance company to access your medical record to make sure that you do not have any major health issues. In some cases, medical exam may be required based on medical history. Also, if you applying for a death benefit of more than $1 million, a medical exam might be required.

What are some of the reasons why people get declined for IUL?

-A felony within 5-10 years

-DWI or DUI within 5 years

-Overweight (Depends on height)

-Personal history of cancer

-History of alcohol or substance abuse

-Life, health, or disability insurance has been rated or declined

-Major medical conditions

-Alcohol Abuse

Do I have to pay taxes on the interest earned on my cash value?

No, you do not pay taxes on funds accessed from the cash value as long as the policy remains enforces. If you decide to cancel the policy you will be required to pay taxes on any "interested earned'' in your cash value.

Is IUL better than 401k or IRA?

401k and IRA are both considered investments, while IUL is not. However, IUL does offer several benefits, which are not available with both 401k and IRA. For example, you can fund the policy with as much as you want, there are no age restrictions on withdrawals, you do not have to pay taxes on the interest earned, it's not impacted by market losses etc.

What is the difference between IUL and Infinite Banking and MPI?

Infinite banking and MPI (Maximum Premium Indexing) are both considered IUL.

How soon can I access the funds in my cash value?

You can access funds in your cash value within 30 days of you opening your policy. However, you can only do this if you fund the policy with a lump sum when you open the policy. Generally, it takes at least a year for you to accumulate enough funds to withdrawal, and the minimum you can withdrawal is $500.

What happens to my cash value when I pass away?

The cash value is added to the death benefit and paid out to your beneficiary. For example, if you pass away and you have $50,000 in cash value and $300,000 in death benefit, your beneficiary will receive a total of $350,000.

Can I fund the policy with large sums of money at once?

Yes, but it depends on how much your death benefit it. A high death benefit gives you the ability to over fund the policy, which enable your cash value to grow much faster.

How do I access money from my cash value?

You can either withdrawal the cash value, which will reduce or deplete what you have accumulated, or you can take out a loan against the cash value. It is more beneficial to take out a loan because your cash value will continue to earn interest at higher rate, while you pay a lower interest rate for the loan. Another benefit to taking out a loan is that you do not have to pay extra on top of your premium if you do not choose to. A portion of your premium will go towards offsetting your loan. If you do pass way in the process of paying back your loan, the loan balance will be deducted from your cash value and whatever is left will be paid out to your beneficiary.

What happens if the insurance company shutdown of files for bankruptcy?

When an insurance company becomes financially unstable and can’t pay policyholder claims, the state’s insurance commissioner can take over the company through a process called receivership. First, the commissioner will try to rehabilitate the company to improve its financial situation. If that doesn’t work, the commissioner can declare the company insolvent and sell off its assets, according to the National Organization of Life & Health Insurance Guaranty Associations. If an insurance company is declared insolvent, the state guaranty association and guaranty fund swing into action. The association will transfer the insurer’s policies to another insurance company or continue providing coverage itself for policyholders.

Where can I get an IUL policy?

You can only get an IUL through a licensed insurance agent who is appointed with companies that offers IUL. Our agents are licensed nationwide. Complete the form above and an agent will reach out to you.

Can I increase my monthly premium anytime?

Yes, you are allowed to increase your premium up to a certain amount annually depending on how much your death benefit is.