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  • What is Index Universal Life (IUL) and how does it work?
    What is Index Universal Life? Indexed universal life insurance is a type of permanent life insurance that has a cash value component in addition to a death benefit. The money in your cash value account can earn interest based on a stock market index chosen by the insurance company, such as the S&P 500. How Does Indexed Universal Life (IUL) Insurance Work? When a premium is paid, a portion pays the cost of insurance based on the life of the insured, and the rest is added to the cash value. The total amount of cash value is credited once a year with interest based on increases in an index (but it is not directly invested in the stock market).
  • How much can I start with?
    You can start with as low as $50 a month. However, the higher your monthly premium, the faster your cash value grows. Below is our recommendation: 20yrs - 25 yrs: $100 - $150 26yrs - 30 yrs: $150 - $200 31yrs - 35 yrs: $200 - $250 36yrs - 40 yrs: $250 - $300 41yrs - 45 yrs: $300 - $400 46yrs - 50 yrs: $400 - $500 50yrs- 60yrs: $500 - $1000 or more
  • What are the advantages of IUL?
    There are many advantages to having an IUL policy: Less risk: The policy is not directly invested in the stock market, thus reducing risk to zero. Interest rate ranges from 5.8 - 12% annually (Depending on market performance) Tax free- You don’t pay taxes on interest earned Easier distribution: The cash value in IUL insurance policies can be accessed at any time without penalty, regardless of a person’s age. Alternative stragegy for retirement Access deathbenefit while alive if you become Critically, Terminally, or Chronically ill. Death benefit: This benefit is permanent, not subject to income or death taxes, and not required to go through probate. Unlimited contribution: IUL insurance policies have no limitations on annual contributions.
  • What are the disadvantages of IUL?
    There are few disadvantages to IUL. First, it does take time for the cashvalue 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 possiblity 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. 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 people get declined for IUL?
    Below are some of the reasons why a person can get denied for IUL: A felony within 5-10 years DWI or DUI within 5 years Overweight (Depends on height) Personal history of cancer (except for certain skin cancers), diabetes or heart disease History of alcohol or substance abuse Llife, health, or disability insurance has been rated or declined Major medical conditions Alochol 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 cashvalue 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 Inifinte Banking and MPI?
    Inifinite 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 way?
    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 beneficary 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 beneficary.
  • What happens if the insurance company shutsdown of files for bankrupcy?
    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. We are licensed in over 20 states.To get started you can call or send a text message to 240-245-7739
  • 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.
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