If you are looking for added security for your family or an opportunity to save more for retirement, an Index Universal Life Insurance policy might be for you. These types of policies are best for those who have a need for permanent life insurance protections such as leaving money to children, to supplement retirement income, or to maintain your spouse’s life after your death. Here are some things to consider when deciding if an Index Universal Life Insurance Policy is right for you.

  1. Social Security May Not Be Enough to sustain your lifestyle after retirement.
  2. 401(k) May Not Be Enough. Once retirement seemed so far away, now it’s creeping up on you —maybe 15, 10 or less than five years away. You may have concerns your current retirement saving will not be enough for a relatively secure financial future.
  3. Pensions May Not Be Enough, plus very few companies have pensions today.
  4. No Contribution Limits: Unlike traditional retirement products, index universal life insurance has no contribution limits. Thus, highly compensated individuals can save much more for retirement with this solution.
  5. Interest Crediting Brings a World of Potential: Most index universal life insurance products offer exposure to multiple stock market indices for upside potential. Indexes used to determine interest crediting include U.S., Asian, and European stock indexes, plus bond indices.
  6. Benefit Options: Index universal life products offer flexible death benefit options, which may include: stated death benefit, base death benefit plus the account value, or base death benefit plus total premiums paid. Also, many IUL products have the op􀆟on to add Long-Term Care Riders to further protect the individual.
  7. Multiple Index Selections: Some index universal life products provide an index mix selection which has the most exposure to the best performing index, and no exposure to the worst performer.
  8. Tax Advantage Distributions: As a high income earner, you need to pay attention to the tax treatment of the retirement accumulation products you own. And with future tax rates for the affluent unlikely to go down, it’s good to know that distributions from your index universal life policy are tax free.

These guidelines are just a start to considering the right choice for your long-term retirement planning needs. As the financial advisor at 1st United Credit Union through CUSO Financial Services, L.P. (CFS), Rahil Machiwalla can answer questions about the Index Universal Life Insurance Policy and help provide direction on what’s best for you. He is available to chat by phone or can meet you at any 1st United branch. Call Rahil at (925) 598-4718 or schedule your appointment today.


Rahil Machiwalla
CUSO Financial Services, L.P.* Financial Advisor
(925) 598-4718
CA Insurance Number: 0G20361



Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. Please consult a qualified tax advisor for specific tax advice.