IUL Secrets is a life insurance package that integrates multiple superior features compared to other insurance packages: living benefits, death benefits, retirement savings, etc. However, if you still wonder what IUL Secrets is, and how it differs from the IUL Insurance currently available in the market, don’t miss this article!
What is IUL Secrets?
In essence, IUL Secrets is a type of Indexed Universal Life Insurance (IUL Insurance), but this insurance package is provided and guaranteed by National Life Group – a leading company in the life insurance field with 175 years of operation.
In addition to death benefits and investment capabilities, retirement savings, IUL Secrets also has living benefits, tax-free withdrawals, high interest rates with stable returns of 6 – 10%/year, and most importantly, it is extremely safe.
Moreover, IUL Secrets is unique in its flexibility: participants can adjust their insurance premium payments and death benefits to suit their needs and financial goals. With the advantage of tax exemption, IUL Secrets is a highly suitable life insurance package for those with high net income who want to reduce personal income tax.
9 Benefits of IUL Secrets Insurance
IUL Secrets Insurance offers a combination of protection and investment. Here are 9 outstanding benefits that make IUL Secrets an attractive choice for those who want to ensure their health, family, and financial future.
Living Benefits: Protection against 16 critical illnesses and disabilities
Compared to traditional Whole Life insurance, which only offers death benefits (i.e., compensation if the participant passes away), IUL Secrets stands out with its living benefits.
Specifically, IUL Secrets’ policy protects participants against 16 different critical illnesses and disabilities: including Stroke, Cancer, Heart Attack, Traumatic Brain Injury, Kidney Failure, Sudden Cardiac Arrest, Disability from Accidents, Severe Burns, Blindness, Paralysis, Coma, Motor Neuron Disease, Aplastic Anemia, Cystic Fibrosis, Lou Gehrig’s Disease (ALS), Heart Valve Replacement, Major Organ Transplant, and Aortic Surgery.
The living benefits of IUL Secrets not only help to reduce a significant portion of medical expenses, but in the event of disability or diminished work capacity, or if the participant cannot work, IUL Secrets ensures financial stability for the participant and their family.
Death Benefits: High compensation levels
IUL Secrets’ death benefits ensure “financial security” for the beneficiary after the participant passes away. Specifically, IUL Secrets supports funeral expenses, debt repayment, income replacement, and long-term financial goals.
IUL Secrets also offers flexibility by allowing participants to choose between fixed death benefits or increasing death benefits over time, with these benefits being tax-free to maximize the assets transferred to the beneficiary.
Protection up to 120 years old
IUL Secrets has a policy that protects participants up to 120 years old. This lifelong policy gives buyers peace of mind regarding finances without needing to renew while leveraging the investment component of the contract for long-term asset growth.
Remember, the returns from IUL Secrets are very high because its interest rate is based on stock market indices (such as Nasdaq-100, and Standard & Poor’s 500). The longer you keep it, the more money you receive.
High interest rates with stable returns of 6-10% per year
One of the main advantages of IUL Secrets is its ability to invest with high interest rates, usually ranging from 6 – 10%/year, higher than traditional life insurance contracts. Thus, IUL Secrets becomes an attractive choice for those seeking a solution that integrates both health protection and investment.
The interest rate of IUL Secrets is based on the performance of selected stock market indices, such as the S&P 500. Most IUL Secrets contracts have never had a return below 0%, even when the market is in decline.
Comfortable Retirement
With high returns, IUL Secrets is not only life insurance but also a retirement savings method. When the IUL Secrets contract ends, participants can withdraw the accumulated returns to serve their retirement without depending on their children.
Moreover, policyholders can borrow against or make partial withdrawals from the accumulated money when necessary. These loans are usually tax-free and do not need to be repaid during the policyholder’s lifetime.
Tax-free returns
The most attractive benefit of IUL Secrets is that the returns are tax-free upon withdrawal. This allows for more efficient asset accumulation as all earned interest is reinvested and continues to grow (compound interest).
Additionally, IUL Secrets allows access to cash value through policy loans (usually tax-free) for various financial needs: retirement, covering emergency expenses, or investing in other opportunities.
The death benefit paid to the beneficiary is also typically tax-free, ensuring that the entire value of the IUL Secrets contract is transferred without being reduced by taxes.
National Life Group: A safe and reliable insurance company
National Life Group, the provider of IUL Secrets, was established and has been continuously operating for 175 years. This proves the credibility, reliability, efficiency in operations, and financial strength of the company.
National Life Group’s financial stability is also reflected in the ratings from independent rating agencies such as A.M. Best, Standard & Poor’s, and Moody’s. These ratings indicate the company’s ability to meet its obligations to IUL Secrets buyers and provide confidence in the long-term viability of National Life Group.
Flexibility
IUL Secrets allows participants flexibility in customizing the contract to suit their needs, goals, and capabilities, such as:
- Adjusting premium payments: You can pay additional premiums to increase returns or reduce premiums during financially difficult times.
- Death benefits: You can choose between fixed death benefits or increasing benefits to provide additional customization.
Pros and Cons of IUL Secrets
Pros
- High returns: Compared to traditional Whole Life packages, the interest rates of IUL Secrets are much higher. Participants will accumulate a large sum for retirement or other investments after the IUL Secrets contract ends.
- Flexibility: With IUL Secrets, participants can customize policies on premium payments and death benefits to suit their financial capabilities. Additionally, IUL Secrets allows early access to the accumulated money.
- Tax exemption: The accumulated money, living benefits, and death benefits withdrawn from IUL Secrets are generally tax-free.
Cons
- Complexity: Compared to traditional Life Insurance packages, IUL Secrets policies are more complex. Participants need to understand indexes such as cap rates, floor rates, etc., because the returns of IUL Secrets are related to the stock market.
- High costs: The costs of IUL Secrets are usually higher than other life insurance types because they include management fees, insurance fees, and fees related to managing the index account.
- Dependent on market performance: The growth of the cash value in IUL Secrets depends on market performance. However, IUL Secrets also offers protection against market decline, so participants can feel secure.
How IUL Secrets Works?
The working terms of IUL Secrets are structured to provide both flexibility and safety for participants. Here’s a detailed look at how IUL Secrets policies work:
Premium payments
IUL Secrets insurance buyers pay flexible premiums. A portion of the premium is allocated to death benefits, administrative fees, and the cost of insurance (COI). The remaining part is allocated to the cash value of the IUL Secrets contract.
Accumulated cash value
The cash value in IUL Secrets grows based on the performance of a selected market index (e.g., S&P 500). However, it is not directly invested in the market. Instead, National Life Group credits interest to the cash value based on the index’s performance, according to cap rates (maximum interest rates) and floor rates (minimum interest rates, usually 0%).
Interest crediting methods
- Annual Point-to-Point: Compares the index value at the start and end of the year.
- Monthly Point-to-Point: Compares the index value at the start and end of each month.
- Daily Averaging: Uses the average of daily index values over a specific period.
Cap and Floor Rates
- Cap rate limits the maximum interest credited to the cash value. For example, if the cap rate is 10% and the index rises by 12%, only 10% is credited.
- The floor rate protects against market loss by ensuring the interest credited does not fall below a minimum level, usually 0%.
Loans and Withdrawals
IUL Secrets policyholders can borrow against the cash value, usually at a certain interest rate. Loans do not require credit checks and do not need to be repaid, but unpaid loans will reduce the death benefit. Withdrawals can also be made from the cash value, but they may reduce the death benefit and the cash value of the IUL Secrets contract.
Death Benefits
The IUL Secrets contract provides death benefits to the beneficiary when the insured person passes away. The death benefit can be fixed (a fixed amount) or increasing (death benefit plus cash value).
Fees
- Administrative Fees: Fees for maintaining the contract.
- Cost of Insurance (COI): Costs for life insurance protection.
- Surrender Charges: Fees for early termination of the contract, usually decreasing over time.
Riders and Additional Benefits
- Living Benefits Rider: Allows access to death benefits in case of critical illness, chronic illness, or severe illness.
- No-Lapse Guarantee Rider: Ensures the IUL Secrets contract does not expire, provided certain conditions are met.
Example Illustration of IUL Secrets Insurance
Initial Setup
Suppose John, a 35-year-old man, purchases an IUL Secrets policy with a $250,000 death benefit. He chooses to pay an annual premium of $5,000.
Premium Allocation
Out of the $5,000 premium:
- $1,500 goes toward the cost of insurance and administrative fees.
- $3,500 is allocated to the cash value.
Interest Crediting
The cash value grows based on the performance of the selected index. If the index performs well, and the cap rate is 10%, John could see up to a 10% increase in his cash value for that year. If the index performs poorly, the floor rate (0%) ensures that John doesn’t lose any cash value.
Cash Value Growth
Over time, as John continues to pay premiums and the cash value earns interest, his cash value grows. For instance, after 10 years, assuming an average interest rate of 6%, John’s cash value could grow significantly, providing a substantial amount for loans or withdrawals.
Policy Loans and Withdrawals
At age 50, John decides to take a loan against his cash value to fund his child’s education. He borrows $20,000, which is tax-free and doesn’t require repayment. However, if John doesn’t repay the loan, the outstanding loan amount plus interest will be deducted from his death benefit.
Death Benefit
At age 85, John passes away. His beneficiary receives the death benefit of $250,000, minus any outstanding loans and interest. If John had no outstanding loans, the full $250,000 would be paid out, providing financial security to his family.
Who Should Buy IUL Secrets?
IUL Secrets is an excellent choice for many individuals, depending on their financial goals and circumstances. Here’s a look at who can benefit the most from IUL Secrets:
- Those Seeking Flexible Insurance Solutions: The ability to adjust premium payments and death benefits makes IUL Secrets a versatile option for different life stages: starting a career, raising a family, or retiring.
- Investors Looking for Returns with Health Protection: Besides health benefits, IUL Secrets offers high-interest rates from 6% to 10% with a downside protection policy (no losses even when the market declines).
- Tax Solution Seekers: Individuals with high net income who need a safe, tax-advantaged financial solution.
- Retirement Planners: With high growth potential and tax-free benefits, IUL Secrets is a perfect choice for accumulating assets for old age.
- Education Cost Planners: With high interest rates and the ability to accumulate significant funds over flexible periods of 10 or 15 years, IUL Secrets is a solution for parents to prepare sufficient funds for their children’s college or graduate school education.
What Customers Say About IUL Secrets?
Over 10 years, Thinksmart Insurance has served more than 20,000 clients across 50 states in the US. Here are some feedback from customers about IUL Secrets life insurance:
Why Buy IUL Secrets from Thinksmart Insurance?
Thinksmart Insurance represents top insurance companies in the US such as National Life Group, AIG, Allianz, and Transamerica. With 10 years of experience in providing financial services, Thinksmart Insurance has served over 20,000 families across America.
Moreover, the IUL Secrets policy offered by Thinksmart Insurance is guaranteed by National Life Group, a company with 175 years of existence. This longevity assures the credibility and safety of investments for those participating in the IUL Secrets policy.
Additionally, Thinksmart Insurance has a professional team of agents ready to support and serve customers 24/7. Any questions, concerns, or difficulties will be promptly addressed by Thinksmart Insurance.
FAQs
How is IUL Secrets different from other Index Universal Life Insurance (IUL) policies?
National Life Group backs IUL Secrets with specific and superior policies including living benefits, death benefits, high interest rates, tax advantages, retirement accumulation, and flexibility according to the financial situation of the participants.
What is the cost of IUL Secrets?
The cost of IUL Secrets depends on various factors including age, health condition, death benefit amount, and the premium payment structure chosen by the participant. Generally, IUL Secrets has a higher initial cost than Term Life Insurance due to its additional features and investment component. However, the potential for cash value growth and the flexibility in premium payments can provide long-term value that offsets the initial cost.
How long is the protection period for IUL Secrets?
IUL Secrets is designed to provide lifetime protection if the policy remains in force. This means that as long as the participant continues to pay the premiums and the cash value is sufficient to cover the insurance costs and fees, IUL Secrets will provide coverage throughout the participant’s lifetime.
Above, Thinksmart Insurance has provided basic information about IUL Secrets. If you have any questions or are interested in the IUL Secrets product, please contact Support@Thinksmartinsurance.com, message through the Messenger app, or call the hotline at (678) 825 3737.
