2 Surprising Reasons People Buy IUL

Are you curious about why high-net-worth individuals (HNWIs) are looking to invest to indexed universal life (IUL) insurance? Our latest survey of 337 HNWIs reveals some interesting insights. And it's not just about leaving a legacy for loved ones.

Key IUL Survey Findings

Our findings show that 40% of respondents said they're interested in IULs for either retirement planning or leveraging the loan facility. These savvy investors are looking beyond traditional life insurance benefits and utilising IULs as a powerful tool for lifetime financial flexibility and growth.

Deeper Dive into the Survey Data

Our survey uncovered the top reasons HNWIs are drawn to IULs:

1. Retirement Planning (20%): IULs offer a tax-efficient way to supplement retirement income, providing access to funds with lower risk than other investments.
2. Loans (20%): The ability to borrow against a policy's cash value at competitive rates of interest and provide cash liquidity for various financial goals.
3. Family Protection (19%):  HNW individuals with complex estates and significant wealth often use IULs to provide a financial safety net for their loved ones, ensuring their financial legacy.
4. Asset Protection (15%): HNWIs value the protection IULs offer with very high credit rated insurers providing safety and security not found in traditional investments. Life policies also offer valuable portfolio diversification benefits.
5. Stock Market Protected Investing (11%): The potential for market-linked gains without risking capital appeals to more risk adverse cautious investors.
6. Wealth Tax Planning (11%): IULs provide tax-deferred growth and potential estate tax advantages, making them a strategic tool for wealth preservation.
7. Key Person Planning (4%): Some HNW business owners use IULs to protect their companies from the financial impact of losing key personnel.

[Source: Capital for Life marketing online survey, July 1st - August 7th, 2024]

Conclusion

IULs are not your average life insurance policy. They offer a versatile suite of benefits that go beyond simply providing a death benefit. Whether you're looking for a way to boost your retirement income, access capital for investments, or protect your assets, an IUL could be the right solution for you. Read more about who should buy IUL insurance in our blog.

Ready to take the next step?

Get a personalised IUL quote today and discover how this powerful financial tool can help you achieve your goals.