Ethos Index Universal Life Insurance (IUL)
Lifetime liquidity A financial cushion in your working years
Access your policy’s available cash value anytime through loans and withdrawals, which are generally tax-free 1 . This can provide financial protection for life’s unexpected emergencies and opportunities—with some important considerations.
Pros
Things to keep in mind
✔ Tax-free money 1 . As long as the policy is in force, loans are tax-free and withdrawals are tax-free up to what’s known as your basis —the total of premiums paid, minus any outstanding loans and prior withdrawals. ✔ Fast, flexible and creditor-free. Loans and withdrawals can be used for any purpose, and the money can be accessed quickly with no lenders or credit checks involved. ✔ Attractive loan terms. Fixed account loans feature low interest rates, while variable loans allow you to remain allocated to index options.
✔ Loans and withdrawals will reduce your death benefit and impact cash value growth. Make sure you’re maintaining adequate life insurance protection for your family and keeping your long-term objectives on track. ✔ Excessive and unpaid loans can create a taxable event. Ethos IUL’s Overloan Protection Benefit and 20-year No-Lapse Guarantee will prevent policy lapse if certain requirements are met. If these requirements are not met, your policy can lapse, creating a taxable event and loss of coverage.
Goals for your golden years Once you retire, Ethos IUL allows you to create an income stream you can never outlive.
Option 1: Activate the Lifetime Income rider. Convert your cash value into level or increasing monthly payments that last the rest of your life. • This option is available between ages 50 and 85 as long as certain conditions are met. There is a one-time charge based on account value to activate this benefit.
Option 2: Stay flexible. Create supplemental retirement income as needed via policy loans and withdrawals. • Access the policy’s cash value instead of market- facing assets during a downturn. This can give funds with market exposure time to regain value, and help retirement savings last longer.
Both the Lifetime Income rider and standard policy loans and withdrawals decrease the policy’s cash value and death benefit over time.
1 Tax-free incomes assumes that 1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals) and 2) that the policy is not a modified endowment contract. See IRC §§ 7702(f)(7)(B), 7702A. Loans and withdrawals that exceed the total premiums paid will also become taxable if a life insurance policy lapses.
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