Fixed index universal life (FIUL) insurance is a type of permanent insurance that offers a death benefit for as long as your policy remains in force – typically that’s the rest of your life, assuming you pay the proper premium payments. (Term insurance provides a death benefit only for a specified period of time.) And that’s just the beginning:
[Narrator] No matter how well you plan for the future, there are events in life, both expected and unexpected, that can affect the financial well-being of you and your loved ones. That's a reason for life insurance.
[On-screen disclosure] Death benefit is generally income-tax-free to beneficiaries. [End of on-screen disclosure]
The death benefit that's generally income-tax-free to your beneficiaries can help ensure your family will be able to maintain their standard of living, help them keep their home, or supplement lost income.
But there are other concerns you have as you go through life. Things like potential tax increases, inflation, financial emergencies, and planning for events like college, retirement, or even weddings. Some types of life insurance can help with these and other concerns too, such as fixed index universal life insurance, or simply FIUL. With FIUL, your policy can be a financial resource, because it has the potential to build value over time.
This can happen in two ways. You can choose to receive indexed interest.
[On-screen disclosure] Although an index may affect your interest credited, you cannot invest or directly participate in an index. [End of on-screen disclosure]
Here, your policy tracks, but is not actually invested in, an external market index like the S&P 500® Index.
[On-screen disclosure] This hypothetical example is provided for illustrative purposes only. [End of on-screen disclosure]
If the index has a positive annual return, you are credited with interest according to the terms of your selected index allocation.[On-screen disclosure] Fees and expenses may reduce policy values. [End of on-screen disclosure]
This interest is locked in. So if the market goes down, you won't lose any interest due to the drop.
You can also choose to receive fixed interest, one set predictable interest rate month after month, no matter the market.
[On-screen disclosure] Because no single allocation will be most effective in all market environments,
your financial professional can help you determine which combination may fit your financial goals. [End of on-screen disclosure]
Whether you choose fixed interest, indexed interest, or a combination of both, any accumulation your policy builds is ta deferred.
[On-screen disclosure] Because no single allocation performs best in all situations, your financial professional
can help you determine which combination may fit your financial goals. [End of on-screen disclosure]
That leaves more in your policy to potentially keep growing over time.
Down the road, you can access any available cash value through policy loans or withdrawals. These are income tax-free and can be used for any purpose you want.
[On-screen disclosure] Policy loans and withdrawals will reduce the available cash value and death benefit and may cause unintended consequences, including lapse or taxable events. Please see full loan and withdrawal disclosure within this material for details [End of on-screen disclosure]
Whether it's helping to fund college, supplementing your retirement income, or helping pay for emergencies or other expenses, that's an income-tax-free death benefit, tax-deferred accumulation potential, income-tax-free policy loans and withdrawals, and even optional riders for additional benefits, including financial help for chronic or terminal illnesses, all in one fixed index universal life insurance policy. Get better prepared for what's ahead in life, whatever's ahead. Talk to your financial professional about how a fixed index universal life insurance policy could be part of your overall financial strategy.
[On-screen disclosures]
This content is for general educational purposes only. It is not intended to provide fiduciary, tax, or legal advice and cannot be used to avoid tax penalties; nor is it intended to market, promote, or recommend any tax plan or arrangement. Allianz Life Insurance Company of North America, it's affiliates, and their employees and representatives do not give legal or tax advice. Customers are encouraged to consult with their own legal, tax, and financial professionals for specific advice or product recommendations.
Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse. Withdrawals in excess of premiums paid will be subject to ordinary income tax. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. If a policy is a modified endowment contract (MEC), policy loans and withdrawals will be taxable as ordinary income to the extent there are earnings in the policy. If any of these features are excercised prior to age 59½ on a MEC, a 10% federal additional tax may be imposed. Tax laws are subject to change and you should consult a tax professional.
It's important to note that with an external index, your policy does not directly participate in any equity or fixed income investments – you are not buying shares in an index.
The indexes available within the policy are constructed to keep track of diverse segments of the U.S. or international markets, or specific market sectors. These indexes are benchmarks only. Indexes can have different constituents and weighting methodologies. Some indexes have multiple versions that can weight components or may track the impact of dividends differently. Although an index may affect your interest credited, you cannot buy, directly participate in or receive dividend payments from any of them through the policy
Although an external market index may affect your interest credited, your policy does not directly participate in any stock or equity or bond investments. You are not buying shares in any stock or index
Product and feature availability may vary by state and broker/dealer.
This content does not apply in the state of New York.
Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.
Products are issued by Allianz Life Insurance Company of North America, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. www.allianzlife.com
[End of on-screen disclosures]
With college costs continuing to rise, it's never too early for parents or grandparents to consider opportunities for possible funding. See how FIUL can be part of the solution.
Inflation can chip away at the buying power of your retirement income. Learn how the accumulation potential of FIUL can be a source for supplemental money in retirement.
See how FIUL can help address business concerns such as attracting and retaining key employees, buy-sell agreements, and succession planning (particularly for family businesses).
Discover how FIUL can help create a legacy through the death benefit, reduce taxes, protect assets from creditors, avoid family strife, and even help keep a business in the family.
Get answers about how fixed index universal life insurance works, why you may need coverage, and the application process.
See what sets our fixed index universal life insurance apart from competitive policies – and how you can customize it to your needs.
1 Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse. Withdrawals in excess of premiums paid will be subject to ordinary income tax. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. If a policy is a modified endowment contract (MEC), policy loans and withdrawals will be taxable as ordinary income to the extent there are earnings in the policy. If any of these features are exercised prior to age 59½ on a MEC, a 10% federal additional tax may be imposed. Tax laws are subject to change and you should consult a tax professional.
FIUL requires qualification through health and financial underwriting.
The death benefit is generally income-tax-free when passed on to beneficiaries.
Product and feature availability may vary by state and broker/dealer.
Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.
Products are issued by Allianz Life Insurance Company of North America, PO Box 59060, Minneapolis, MN 55459-0060.
This content does not apply in the state of New York.
