Thank You for Choosing Gaviria Life Insurance!

IUL is permanent life insurance with a death benefit and a cash value tied to a market index (e.g., S&P 500). It has caps on gains (e.g., 10-12%) and floors (e.g., 0-2%) to limit risk and reward, offering growth potential with protection.

IUL offers tax-free cash value growth, flexible premiums, and a death benefit, unlike term life’s temporary coverage. It provides downside protection (no losses if the market declines) and potential for much higher returns than fixed-rate policies like whole life.

The cash value earns interest based on the index’s performance, subject to a cap (maximum gain) and floor (minimum return, often 0.25%). You don’t directly invest in the market, so you’re protected from losses but still benefit from gains. Gains are locked in monthly.

IULs have premium expense charges, administrative fees, cost of insurance, surrender charges, and index account charges. These can reduce cash value growth if not managed. If managed correctly, these charges can be as low as 1% on max-funded IULs.

Yes, you can borrow against (which is tax-free) or withdraw from the cash value (which is tax-free up until premiums paid) for needs like college or retirement, as long as the policy remains active. Loans accrue interest, and unpaid loans reduce the death benefit. Loans do not need to be paid back, but it is recommended to maximize the policy. 

IUL can complement retirement plans with tax-free growth and tax free retirement cash. It’s best for those prioritizing insurance, security, rate-of-return, and liquidity.

Risks include high fees, lower-than-expected returns if the market underperforms, and potential policy lapse if premiums aren’t paid. The floor protects against market losses, but fees can still erode value. We know this is extremely important, and that is why we custom-tailor plans to maximize the rate of return of the cash value.

IUL allows adjusting premiums and death benefits within policy limits, based on your financial situation, making it ideal for families with changing needs. However, there are minimum premium requirements.

IUL suits those with long-term goals (10+ years), stable income to cover premiums, and a need for both life insurance and tax-advantaged growth. Not ideal for short-term needs or low budgets. It also suits those who want to optimize their assets so they can maximize the safety, rate of return, and liquidity of their portfolio.

Cash value grows tax-deferred, and loans/withdrawals are typically tax-free if the policy stays active. The death benefit is generally tax-free for beneficiaries. Improper handling (e.g., policy lapse) can trigger taxes. Our agents are there for you every year, and strategizing with them will provide you with the best results.