Why Haven’t I Heard About This From My Advisor?

A few honest reasons most retirement conversations skip indexed universal life (IUL):

• It’s a specialty. Most advisors are licensed to sell securities — 401(k)s, IRAs, mutual funds. IUL sits in a different lane.
• Incentives shape recommendations. Many advisors work inside firms with a specific product menu. If a strategy isn’t on the menu, it usually isn’t on the table.
• It takes longer to explain. A 401(k) match is a five-minute conversation. A properly designed IUL is longer, because the product is more nuanced.

The result: most American households have never been introduced to this strategy.

A Side-by-Side Look

With a Tax-Deferred 401(k) or IRA

• Taxes are deferred, not avoided. You owe income tax on every dollar withdrawn — and no one can predict future tax rates.
• Withdrawals before age 59½ generally face a 10% federal penalty plus ordinary income tax.
• Annual contribution limits cap your tax-favored funding.
• Account value follows the market. Up years gain. Down years lose.
• Required Minimum Distributions begin at age 73.

With a Properly Structured IUL

• Cash value grows tax-deferred. When the policy is properly structured and kept in force, policy loans can provide income generally not treated as taxable.
• A 0% floor protects index crediting from market losses. In a down year, crediting can be zero — but it cannot be negative.
• No IRS-set contribution cap. Funding is governed by IRS Section 7702.
• Cash value can be accessed via policy loans and withdrawals.
• No Required Minimum Distributions.
• The death benefit passes to your beneficiaries generally income-tax-free.

Important to Know

IUL is a life insurance contract first. It carries internal costs — cost of insurance charges, premium expense charges, and policy fees — that are deducted from the cash value over time. If a policy lapses with an outstanding loan balance, there can be significant tax consequences. Design matters.

Life Insurance You Don’t Have to Die to Use

This is what separates a modern IUL from the life insurance most people think they know. You can access the value of the policy two ways while you’re still living.

1. The Cash Value You Build

As your policy grows, you can access the cash value through loans or withdrawals — for retirement income, an opportunity, or a need that comes up along the way. Policy loans and withdrawals reduce the cash value and death benefit and may result in a taxable event.

2. Living Benefits When Life Happens

National Life Group policies include Accelerated Benefits Riders (ABRs) at no additional premium. These riders let you access a portion of the death benefit early — while you’re still living — if you experience a qualifying:

• Terminal illness — an illness reasonably expected to result in death within 24 months.
• Chronic illness — inability to perform 2 of 6 activities of daily living, or severe cognitive impairment.
• Critical illness — qualifying diagnoses include cancer, heart attack, stroke, ALS, major organ transplant, end-stage renal failure, and more.
• Critical injury — coma, paralysis, severe burns, traumatic brain injury.
• Alzheimer’s disease or Lewy Body Dementia — with a qualifying diagnosis from a Specialist.

The benefit is paid as a lump sum, on a discounted basis, with generally no restriction on how you use the funds. Pay for in-home care, modify your home, cover bills, replace lost income — it’s your money to use as you need.

Why this matters: About 1 in 9 people 65 and older has Alzheimer’s dementia. The average lifetime cost of care for a person with Alzheimer’s dementia is $392,874. The average monthly cost for Alzheimer’s care in a U.S. nursing home is $7,441. A serious illness doesn’t just threaten your life — it threatens everything you’ve saved.

^{ABRs are not long-term care insurance and are not intended to be the same as, or an alternative to, long-term care insurance. Acceleration of the death benefit reduces the cash value and death benefit and may have tax implications. Availability of specific riders varies by state and product. In California, the Critical Illness, Critical Injury, and Alzheimer’s Disease riders require the insured to have health insurance coverage.}

Is This a New Idea?

Not at all. Permanent cash value life insurance has been used as a long-term financial tool for over a century.

• Walt Disney borrowed against his whole life policy in the 1950s to help fund early Disneyland development when banks turned him down.
• J.C. Penney drew on his whole life cash value to make payroll during the 1929 crash, keeping his company alive.
• Ray Kroc used his whole life policies to cover expenses while building McDonald’s.

Indexed Universal Life, introduced in 1997, is the modern evolution of that century-old idea — same permanent cash value concept, with index-linked growth and a 0% floor that protects against index-linked losses.

Is an IUL Right for You?

IUL isn’t for everyone. It requires underwriting, a clear funding plan, and works best as part of a broader strategy — not a replacement for everything else you’re doing. The only honest way to know whether it fits is to look at your full picture.

That’s the conversation we’re offering. No cost. No obligation.

Schedule a Conversation

---

^{The information on this page is educational and does not constitute legal, tax, or investment advice. Indexed Universal Life Insurance is a life insurance product subject to all the terms, conditions, charges, and limitations of the underlying policy. Policy guarantees are subject to the claims-paying ability of the issuing insurance carrier. Loans and withdrawals reduce the cash value and death benefit and may result in a taxable event. If a policy lapses with an outstanding loan balance, a taxable event may result. Living Benefits are provided by Accelerated Benefits Riders, which are optional and may not be available in all states or on all products. Payment of accelerated benefits will reduce the cash value and death benefit otherwise payable under the policy. Receipt of accelerated benefits may be a taxable event and may affect eligibility for public assistance programs. Consult a qualified tax or legal professional regarding your specific situation.}