Retire On Time with the Power of Indexed UL

Many Americans dream of retiring at age 65, expecting to have built sufficient assets to sustain them through their golden years. However, for clients relying heavily on their 401(k) plans, market volatility and tax implications can disrupt this timeline and force them to delay retirement.

Here’s how Indexed Universal Life (IUL) can serve as a solution, not just another product, to help your clients retire on time and with confidence.

The Challenge with 401(k) Plans

401(k) plans are a popular vehicle for retirement savings, but they come with challenges:

• Market Volatility: Downturns in the market, especially in the years leading up to retirement, can significantly reduce account values.
• Taxable Distributions: 401(k) withdrawals are taxed as ordinary income, potentially leaving clients with less spendable income than anticipated.

For clients who rely primarily on their 401(k), these risks can jeopardize their ability to retire on schedule.

The Role of Indexed Universal Life (IUL)

IUL policies offer unique advantages that address the shortcomings of traditional 401(k) plans. When positioned as part of a diversified strategy, IUL can help protect against market risks and enhance retirement income.

Above the Match

If a client has access to an employer match on their 401(k), it’s wise to contribute up to the match—it’s free money, after all! But for contributions beyond the match, redirecting those funds into an IUL policy offers:

1. Market Downside Protection: IUL policies feature a floor rate, ensuring no loss of accumulated value even in years when markets decline.
2. Growth Potential: With interest crediting caps around 12%, IUL provides opportunities for meaningful growth.
3. Tax-Free Retirement Income: Distributions from IUL policies can be structured as loans, allowing clients to access funds without triggering taxable events.
4. Financial Security for Loved Ones: In the event of premature death, the policy’s tax-free death benefit ensures the client’s family is protected.

Why IUL Matters

Clients without a company match—or those already maximizing their contributions—face diminishing returns by funneling more money into a 401(k). An IUL policy offers a complementary solution to:

• Mitigate the risks of market downturns.
• Provide a tax-advantaged income stream in retirement.
• Enhance peace of mind with a built-in safety net for loved ones.

Positioning IUL as a Solution

When discussing IUL with your clients, frame it as a tool to:

• Safeguard retirement income: IUL offers guarantees that traditional market-exposed accounts cannot match.
• Diversify their strategy: Combining a 401(k) with IUL balances risk and reward.
• Ensure on-time retirement: By protecting against market losses, IUL helps clients stick to their planned timeline.

By integrating IUL into their retirement planning, you empower clients to navigate the complexities of retirement savings with confidence, knowing they’re protected from the unpredictable swings of the market.

Your Client’s Future Starts Now
Encourage your clients to take a closer look at how Indexed Universal Life can fit into their retirement strategy. With IUL, you’re not just offering a product—you’re providing a solution to help them retire on their terms.