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Why index universal life insurance might be right for you
Originally published by: AIG Consumer Life Insurance.

Do you want your life insurance policy to work for you and offer death benefit
protection for your loved ones? Index universal life (IUL) insurance is designed not
only to provide a death benefit, but also to build cash value and provide an
opportunity for tax-free income (based on current tax law) during your retirement. Be
sure to consult a qualified tax advisor when considering your own circumstances, but
also be sure to look into IUL insurance with your financial professional.

An IUL policy offers potential interest crediting (to one or more types of accounts that
you choose) based in part on upward movement of a stock market index or multiple
indices. An IUL policy may offer more potential for interest than a traditional life
insurance policy, while safeguarding against market downturns.
That’s because some IUL products offer a minimum guaranteed interest rate through
the various account options within the insurance policy. This feature is designed to
provide more cash value that you can use for any reason, including supplemental
income in retirement, and the flexibility to pay lower premiums if needed.

IUL Offers Choices
It’s important to understand that IUL is not an investment; it is a life insurance
product that provides growth potential through index interest crediting. You can’t
invest directly in an index. However, within the guidelines of an IUL policy, you often
have multiple choices, such as:
• the amount of insurance you want,
• the amount of premium(s) to pay (you can increase or decrease them over time),

• the timing or frequency of planned premiums (monthly, quarterly, annually), and
• how to allocate your premiums among the various interest-crediting accounts.

What’s more, you can choose among different types of IUL insurance solutions. For
example, one type is designed for people who want to maximize the potential for
cash value growth inside the policy. Another type focuses on providing strong
guarantees and also offers the potential for cash value growth based on upward
market movement.

IUL in a Nutshell
Here’s how IUL insurance is designed to work:
• You pay premiums – and choose a percentage of them to go to one or more
available accounts (from which policy charges are deducted).
• The policy can accumulate cash value – based on the accounts you’ve chosen.
• You (or your beneficiaries after your death) access the money – by leveraging
one or more flexible options