Question 1

What is Indexed Universal Life?

Accepted Answer

It's permanent life insurance with a cash value account inside it. Interest credited to that account is tied to the movement of a market index, subject to caps and other carrier limits, and a floor keeps index losses from reducing it. It is insurance, not an investment.

Question 2

Is IUL an investment?

Accepted Answer

No. You are not buying shares of an index and you do not receive index dividends. It's a life insurance policy with policy charges, and the cash value component is credited according to the contract, not a market account.

Question 3

What are living benefits?

Accepted Answer

Many carriers let you access part of the death benefit early if you're diagnosed with a qualifying serious illness. The specific triggers, amounts, and any reductions are set by the carrier and the policy, and they vary a lot — we go through them on the call.

Question 4

Can I access the cash value?

Accepted Answer

Usually yes, through policy loans or withdrawals once there is enough value built up. Loans and withdrawals reduce the cash value and the death benefit, and unpaid loan interest can put a policy at risk if it isn't managed.

Question 5

What does "with a floor" mean?

Accepted Answer

The floor is the minimum interest crediting rate in the contract — often 0% — so a down year in the index doesn't reduce the indexed portion of your cash value from index performance. Policy charges still apply, so the value can still go down.

Question 6

How is IUL different from term life?

Accepted Answer

Term covers you for a set number of years and builds no cash value; it's the least expensive way to cover a big need for a limited time. IUL is permanent and includes a cash value component, so it costs more per dollar of coverage. Many people are best served by term, and we'll say so.

Question 7

What happens on the 15-minute call?

Accepted Answer

A licensed Minnesota agent goes through your answers, asks about what you're already funding, and tells you whether IUL, term, final expense, or nothing new makes sense. Nothing is purchased on that call unless you decide to.

Question 8

Will you sell my information?

Accepted Answer

No. Your information is used by our agency and our licensed agents to contact you about coverage, and we do not sell it to lead buyers or third-party marketers.

Questions, answered plainly.