Indexed Universal Life Insurance: Help Meet Your Goals
Whether you’re planning for retirement, college, or a rainy day, it’s important to focus on the journey – not just the destination. To successfully plan for these milestones, it’s vital to figure out which tactics to use to reach your goal faster, safer or more effectively.
One of the tactics many consider is life insurance because it helps ensure that your goals can be reached even in the event of an untimely death. But, there is a specific type of policy that may help you in multiple areas of your financial plan.
Indexed universal life insurance provides life insurance coverage and builds cash value* that you can use while you’re still living. So, whether you’re creating a college fund or looking to diversify your retirement portfolio, indexed universal life could be considered as a key part of your plan.
What is Indexed Universal Life Insurance?
Indexed universal life insurance is a type of life insurance that can accumulate cash value* based on market performance. The cash value* can grow based on a market performance index, usually a broad index such as the S&P 500 or the Dow Jones Industrial Average.
That cash value* in your policy can usually be accessed tax-free** through a loan or by withdrawing it from your policy. This money can then be used as you see fit: to help supplement your retirement, to pay for your child’s education, or even for that unexpected mechanic bill when your brakes went out.
Outside of the potential cash value* accumulation, these policies offer excellent benefits on the life insurance side as well. Many indexed universal life policies can include the ability to adjust your premium payments as you see fit. Obviously, you’ll have to pay for the value of your policy – as great as it would be to get all the life insurance you need for one dollar per month, it just doesn’t work that way. You can also make changes to your death benefit throughout the life of your policy, allowing you to customize the policy as your life insurance needs change.
Whether your goals are supplementing your retirement, diversifying your financial portfolio, or you simply like the idea of a life insurance product that can provide you living benefits, determine if a Universal Life Insurance policy is an option for you.
*The amount that may be available through loans or withdrawals, as defined in the contract.
** For federal income tax purposes, tax-free income assumes (1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals); and (2) the policy does not become a modified endowment contract. See IRC §72, 7702(f)(7)(B), 7702A. Mutual of Omaha does not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits.
All guarantees subject to the financial strengths and claims paying ability of the issuing insurance company.
The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by United of Omaha Life Insurance Company (United of Omaha). S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by United of Omaha. United of Omaha’s Income AdvantageSM and Life Protection Advantagesm are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.
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