Universal Life Insurance
Can indexed universal life insurance be used for retirement?
Indexed universal life (IUL) insurance can be used as a retirement savings vehicle. The cash value grows based on a stock market index (such as the S&P 500) with a floor (typically 0%) and a cap (typically 10-12%). IUL can provide tax-free income in retirement through policy loans.
Key Points
- IUL cash value: grows based on stock market index with floor and cap
- Floor: typically 0% — no loss in down markets
- Cap: typically 10-12% — limits gains in up markets
- Tax-free income in retirement: through policy loans
- An independent agent can help you evaluate IUL for retirement