A
Licensed
Financial
Professional
Opeyemi Joseph
Indexed universal Life (IUL) Insurance; is a type of
permanent life insurance that provide both a death benefit and cash value
component, which grows based on a performance of a stock market index (such as the
S&P 500). unlike a whole life insurance which offer a fixed rate return, IUL allows
policy holders to paticipate in market gains while protecting them from losses
through a floor (typically 0% or 1%). Imagine you cold buy something that protect
your family if you pass away and build wealth while you are still
alive.
That's
IUL (Indexed Universal Life).
It is a two-in-one tool:
Lets break it down
• Individuals looking for life-long coverage + cash growth
• People wanting tax-free retirement income
• High-income earners maxing out Roth IRAs and 401(k)s
• Parents building college funds or generational wealth
• Entrepreneurs seeking financial flexibility and asset protection
Most young people think they don’t need a financial backup
plan—especially when they’re healthy and have no kids. But starting early is
one of the smartest moves you can make for your future.
Here’s why:
A. Protecting Loved Ones If you’re supporting a spouse, kids, or aging parents, having a financial safety net means they’ll be taken care of if something unexpected happens. Even if you don’t have children, it can help cover shared bills, family needs, or any financial responsibilities you leave behind.
B. Clearing Out Debts
A lot of young adults have things like:
• Student loans
• Car payments
• Credit cards
If you’re no longer around, those debts could fall on your parents, partner,
or anyone who helped you financially. Having a smart plan in place ensures
those debts are handled—without burdening loved ones.
C. Super Affordable When You’re Young
Starting a financial protection plan in your 20s or 30s usually means:
• You pay less every month
• You lock in lower rates while you’re healthy
• You save more money in the long run
Waiting until you’re older usually means higher costs and fewer options.
D. Builds Long-Term Wealth
Some financial plans not only protect your future—but also help you grow
your money over time.
They can:
• Build cash you can use later
• Serve as a backup fund
• Help you in emergencies or big goals like buying a home or starting a
business
It’s like planting a money tree that grows with you—quietly in the
background.
In Simple Terms:
Getting your financial safety net early means you:
• Protect the people who count on you
• Take care of your responsibilities
• Save money long-term
• Build a stronger future
This is how smart adults get ahead—not just for today, but for tomorrow too.
• Tax-free retirement planning
• Legacy and estate planning
• College savings
• Emergency fund or opportunity fund
• Supplement to traditional investments
Quick Example
Let’s say you’re 35, healthy, and paying $500/month into an IUL:
• A portion covers your life insurance
• The rest goes into cash value
• That cash grows over the years at an average of 6–8% interest
• At retirement (say 65), you can borrow tax-free income of $30,000+ per
year while keeping your life insurance active.
• Market-linked growth without market risk
• Tax-free retirement income
• Flexible premium payments
• Tax-deferred cash value growth
• Lifelong protection
• Great for estate planning and wealth transfer
• Can be used as a living benefit (for things like chronic illness
riders)
Living benefits are powerful features that allow you to use your life insurance while you’re still alive, especially during critical health situations. The three main types shown in your image are:
This benefit allows the insured person to
access a portion of their death benefit if they are diagnosed with a
terminal illness. This money can be used to ease financial hardship during
their final months—like paying for medical bills, family needs, or any
personal expenses.
Eligibility and Qualifications:
To qualify:
• The insured must be diagnosed with an illness or condition that reduces
their life expectancy to 12 months or less.
This diagnosis must typically come from a licensed physician and meet the
insurance company’s guidelines.
This benefit allows access to part of the death benefit if the insured is
diagnosed with a qualifying chronic illness. It’s meant to help reduce the
financial burden of ongoing medical treatment and long-term care.
Eligibility and Qualifications:
To qualify:
• The insured must be unable to perform at least 2 out of 6 Activities of
Daily Living (ADLs) for at least 90 consecutive days, without substantial
assistance.
OR
• They must require substantial supervision due to severe cognitive
impairment (e.g., dementia, Alzheimer’s).
The 6 Activities of Daily Living (ADLs) are:
1. Bathing
2. Continence (control over bowel/bladder function)
3. Dressing
4. Eating
5. Toileting (getting on/off toilet)
6. Transferring (moving from bed to chair, etc.)
This benefit allows the insured to access a portion of the death benefit if
they are diagnosed with a qualifying critical illness. This provides extra
funds to help with medical costs or living expenses while the person
recovers or undergoes treatment.
Eligibility and Covered Conditions:
Covered conditions may include (but are not limited to):
• AIDS
• Aplastic anemia
• Blindness
• Cancer
• Central nervous system disease
• End-stage renal failure
• First coronary angioplasty
• First coronary artery bypass
• Heart attack
• Major organ transplant
• Motor neuron disease
• Paralysis
• Stroke
The exact list of covered illnesses can vary by insurance company and is
defined in the policy or rider contract. Always refer to the contract for
full details.
These Living Benefits turn life insurance into a life solution—not just a
death benefit.
• You don’t have to die to benefit from your policy.
• You and your family can stay financially secure during the hardest health
battles.
• It provides peace of mind, knowing you have access to cash when it’s
needed most.