IULaccount.com

​​​The More Comprehensive Process Explanation

What is an IUL account?

Indexed universal life insurance is one of the best little known financial secrets on the market. Where else can you find a financial product that offers great potential gains and protection from market loss? It also provides a guaranteed death benefit and creates a tax-free asset. It would be very hard to find a better overall recipe for a retirement portfolio.

 

​IUL is an acronym for Indexed Universal Life. An IUL policy and IUL account are the same thing.

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This insurance is a type of permanent policy. These types of insurance policies are often used to save for retirement, but they can be used to save for anything. 

 

One of the beauties of Indexed Universal Life policies is when you use your cash value funds, no one cares if, or when you will repay it back into your policy. No one cares what your credit is, if you have a job, how much money you make. The standard things bank loans assess are not even a question with IUL accounts.

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How to Open an IUL account?

You apply for an IUL insurance policy with life insurance companies. The insurance company evaluates your health by requesting your official medical report, possibly scheduling a medical exam, or simply interviewing you by phone. 

 

The insurance company will consider your age, height, weight, habits, and hobbies. For example, they will ask if you use tobacco or practice a lot of extreme sports, like race car driving. Then, they determine based on your health and risk factors whether or not you qualify for an IUL life insurance policy.

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How Much Does an IUL Cost?

​Most people start an IUL policy for $200/month, but there is no "one-price-fits-all"cost for an IUL. I think a person over 30 would consider $200/month minimal. Like anything else, if you put in minimal resources, you can probably expect minimal results.

 

So one of the first things that you must decide is how much you can comfortably afford to contribute to your policy every month. The person that has the best answer to that question is you. 

 

We would recommend that you save at least 12-20% or more of your income for a comfortable retirement plan. Ultimately though, you must contribute what you can comfortably afford in your financial situation. 

 

Who is an IUL Good for?

You are never too young to begin saving for your retirement. In fact, is often beneficial to save for 30 years or more to maximize the growth potential of a cash value account. ​

 

IUL accounts are great for people that want to experience high market returns, without actually being invested in the stock market. An IUL account offers a safety net of a 0% floor to protect you from any market losses. So you get the benefits of the markets without any of the losses.

 

IUL's are also good for people applying for citizenship or permanent residency. Non citizens cannot enroll into 401k's or IRA's for retirement plans. But they can create private IUL Life

Insurance policies for retirement planning.

 

​​To open an indexed universal life IUL, you must be located in the U.S.A. and have either a Social Security number, ITIN tax ID number, or W8-BEN and a government-issued ID. Also the younger and healthier you are the better.

 

IUL Account Requirements​​

If you have not seen a doctor in over a year, the insurance company may insist on a full medical exam. The insurance company will cover the cost, if you require a full medical exam. They just want to ensure that you are reasonably healthy.

 

The insurance company will most likely want a current photo of your ID.

 

​Most insurance companies will require you to set up auto-draft from your bank account for monthly payments. Some insurance companies will not accept credit cards or checks. You will most likely need to provide a bank account and routing number to pay your premium payments. ​ 

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Starting is a simple process. We need to know six things:

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1. Your first and last name.

2. What US state do you live in?

3. How old are you?

4. How is your health?

5. Do you use tobacco?

6. How much money do you want to contribute to your policy every month?

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How Much Money do I Need to Open an IUL?​

While most people open an IUL account with between $200-$300/monthly. You must open an account with an amount that is financially comfortable for you. When deciding how much money to put into your policy, we can show you the expected growth at different amounts. 

 

If you want to see how your income might grow at 10% or 20%, we can create several examples. 

 

For example, if you earn $60,000 a year, we can show you your projections. At 10%, you would make $6,000 a year or $500 a month. At 20%, you would make $12,000 a year or $1,000 a month.

 

It's your personal choice, based on your own risk tolerance, so initially you should provide at least one amount which we can use to create an illustration for you. 

 

We believe that saving something is better than saving nothing, and most Americans feel under-prepared when entering retirement... so you just need to get started!

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In Conclusion

IUL accounts are a type of permanent life insurance. These types of life insurance policies are more expensive than term life insurance. Term life insurance doesn't have any cash value component, and expires after a certain time period.

 

​IUL accounts are a great addition to your financial planning, because they offer flexible premiums. They growth mirrors a stock market like the S&P 500 index.

 

You can use the chatbot on IULaccount.com to schedule your appointment with one of our life insurance agents today. Also, please feel free to review our blog to research more IUL topics. Or call us now to get started opening your IUL account today!

 

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