Living Benefit: Cash Value

We often think of the Accelerated Benefit Rider as the only living benefit of IUL policies. However, the cash value accumulation inside an IUL is the most versatile and easy-to-access of the living benefits.   

The cost of an IUL covers both the protection portion of a traditional life insurance policy and an investment portion. Learn how clients can accumulate cash value in their IUL by paying premiums in excess of the cost of their insurance. That cash value is invested in either a fixed or indexed account and accumulates over time with the power of compound interest. Design your clients’ policies so they can build enough cash value to support the policy later in life, after they retire.  

Unlike ABRs, the cash value in an IUL is accessible as a withdrawal or a policy loan at nearly any time in the policy life and does not require any qualifying circumstances to access. Never forgot to include cash value as a key benefit of IULs for your clients.