How Indexed Universal Life Insurance Can Work for You

Buying life insurance surely rises to the top when you make a list of things you can do to help protect your family’s future. The reason is simple: Buying life insurance helps you financially support the people you love after you’re gone. That support can help make up for the loss of income, and can allow your family to continue to live the lifestyle they’re familiar with — exactly what you’re looking for. But what if life insurance could do that, plus help you prepare for retirement²? That’s where indexed universal life insurance (IUL)¹ comes in.

The Basics on Indexed Universal Life Insurance

There are several types of insurance, all designed to provide a death benefit. Some, like indexed universal life, provide additional features.

Many people are familiar with term life insurance, which provides coverage for a specific range of time, such as 10, 20 or 30 years. And there’s whole life, which provides permanent coverage while building cash value. Meanwhile, indexed universal life offers permanent coverage, may build cash value, and may offer more flexibility and opportunity for growth. Many consumers want flexibility in premium/coverage and the opportunity for potentially greater cash value growth linked to an index.

Indexed universal life’s flexibility lets you determine how you pay your premiums, whether in a lump sum³ or regular monthly payments. You can even adjust those payments up or down as the need arises⁴.  Part of your indexed universal life premium can pay the cost of insurance and any expenses related to the certificate — while the rest can be used to potentially accumulate cash value.

What Makes My Choice IUL^® a Good Choice for You?

If indexed universal life seems to fit your needs, then look at WoodmenLife’s My Choice IUL. This product provides your beneficiaries with a death benefit, and you have the potential to build cash value over time.

Families want financial protection, no matter where they are in life. The powerful combination of insurance and retirement planning helps address this basic concern. My Choice IUL could be a great fit for you at any stage of life.

Make the Right Start

Whether you’re beginning a career or a family, you have the ability to take on risk and the potential to grow your funds over a longer time horizon. This provides long-term potential for cash value growth. You also may qualify for lower life insurance premiums, as life insurance tends to be less expensive at a younger age.

Get on the Right Path

If you see retirement on the horizon, you want to ensure your family is protected. But you still want to be able to build potential cash value that could be used to supplement your retirement or accessed when you need it^5*. You will also have the flexibility to change allocations between the fixed and indexed accounts⁶ to help meet your retirement goals, or you can take advantage of flexible premium payments, as your income changes.

Protect Your Assets

If you’re in retirement or almost there, you have the ability to set aside money without paying income taxes until you make a withdrawal⁷. You also may have the chance to grow your cash value and ensure your beneficiaries receive the death benefit⁸ without probate delays.

Two Ways to Grow

With My Choice IUL®, you have the potential to grow your cash value in two ways:

• Indexed Account: The indexed account is usually linked to the performance of an index over a specific time period, up to a maximum cap rate. This gives you the ability to take advantage of an up market but also provides the protection of a 0% guaranteed floor⁸. This means your certificate will not lose value due to a down market.
• Fixed Account: For those who prefer a more conservative approach, the fixed account is a good choice. Your account will earn interest at a competitive interest rate and provide an opportunity for steady, stable growth.

Visit WoodmenLife.org/MyChoice to find out more about My Choice IUL.

IUL is not an investment. It is a life insurance policy product that provides growth potential through index interest crediting. You cannot invest directly in an index.

1. The IUL is not intended to serve as a primary source for retirement pension income or deferral of taxable income.

2. The growth to your cash value, especially if you make contributions above your minimum required premium, could become a source of tax-deferred money in your retirement years.

3. This certificate is not guaranteed to stay in force based on a lump sum premium.

4. A maximum single premium is allowed at the time of application. Additional premiums may be necessary in the future to keep the certificate in force.

5. Loans and withdrawals will reduce the policy’s death benefit and available cash value. Excessive loans or withdrawals may cause the policy to lapse. A loan, withdrawal or surrender may be a taxable event. For tax advice, consult with your professional tax advisor.

6. Certain conditions apply. Limitations include no transfers within the first calendar year of owning the product, a limit of one transfer from the fixed account per year and no transfers from the indexed account until after a segment end date.

7. Death benefit proceeds from a life insurance policy are generally not included in the gross income of the taxpayer/beneficiary (Internal Revenue Code Section 101(a)(1)). There are certain exceptions to this general rule including policies that were transferred for valuable consideration (IRC §101(a)(2)). This information should not be construed as tax or legal advice. Consult with your tax or legal professional for details and guidelines specific to your situation. There may be tax implications for policies recognized as modified endowment contracts (MECs). Distributions, including loans, from a MEC are taxable to the extent of the gain in a policy, and may also be subject to a 10% additional tax if the owner is under age 59½.

8. Guarantees are backed by the claims-paying ability of Woodmen of the World Life Insurance Society (“WoodmenLife”).

Flexible Premiums Adjustable Indexed Life Certificates ICC18 8730 4-18, 8730 4-18 (XX).

Universal Life insurance products contain fees, such as mortality and expense charges (which may increase over time), and may contain restrictions, such as surrender periods. This certificate could lose money. WoodmenLife will provide notification if the guaranteed monthly deductions and interests are expected to exhaust the plan’s cash values prior to the maturity date. This certificate is not guaranteed to stay in force until maturity based on minimum guarantees.

*Excessive loans or withdrawals may cause the policy to lapse.

All products may not be available in all states.

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