We built our IUL Calculator to illustrate how much tax-free income an IUL can generate for you in retirement. It all starts by using our free IUL calculator below.
We assume you are already familiar with the concept of using Indexed Universal Life Insurance (IUL) to complement your current retirement strategy. What you may not know is just how much tax-free income an IUL can add during retirement. This is where our “IUL Calculator” becomes a necessary tool. We designed this calculator to be simple enough for you to get the general idea.
We can help you estimate the tax-free income your IUL policy can generate with just two pieces of information:
- Your current age
- Your monthly contribution amount
What is an IUL Calculator?
By selecting your current age and the amount you plan to contribute to your IUL policy, the calculator can project the potential growth of your policy’s cash value and the tax-free income you could receive in retirement. We are assuming that your retirement age is 67. This is also the age at which full Social Security retirement benefits can be paid.
Our IUL Calculator provides more than numbers; it offers a glimpse into what your retirement picture could look like when you buy an IUL policy. You can adjust the contribution amount to understand how your contributions will affect your future income. We want you to understand that this is for illustrative purposes only. Our IUL calculator doesn’t allow you to change your gender, rate class, or age to receive distributions. You should call us or use the IUL quoter on the side of this page so that we can build out a model specifically for you.
Use our Free IUL Calculator:
How does the IUL Insurance Calculator work?
Our friends at Financial Scenarios have helped us build out our IUL calculator with the following data. We have taken IUL illustrations from an A+ Rated life insurance company over 130 years old. They have a proven track record with IUL and an industry leader. We have built this interactive IUL insurance calculator to help educate our clients on the opportunities that can be created using a properly structured maximum-funded IUL policy to generate a tax-free retirement income stream.
We use the full Social Security retirement age of 67 for our distribution calculations. We can design the policy to generate income at any age. If your goal is to retire and receive income at age 60, we can show those numbers too.
The values shown on the IUL calculator are based on a male non-smoker with average health. If you are female or super healthy, good for you, the income numbers should be higher.
The goal here is to buy the least amount of life insurance needed to keep your policy IRS compliant (non-MEC Status) and your distributions income tax-free.
We are using the carrier default for the rate of return, which is under 6%.
What are the benefits of using an IUL Calculator?
Our Indexed Universal Life Insurance calculator is a simple tool for anyone considering a max funded IUL policy as part of their retirement strategy. The indexed universal life insurance calculator provides clarity and insight into the potential benefits of IUL. It will help you estimate future tax-free income distributions and help you make informed decisions on whether or not to use an IUL account as a retirement supplement.
Here are the key benefits:
Visualizing Long-term IUL Cash Value and Tax-Free Income:
The IUL policy Calculator offers projections of how your IUL policy might perform over the years. You input your age and contribution amount. We are providing a conservative rate of return so that you can see a forecast of your policy’s potential cash value growth and the tax-free income it could provide in retirement.
Understanding the Impact of IUL Contributions:
Our IUL cash value calculator shows how different contribution levels can affect the potential growth of your IUL policy. This feature is especially valuable in planning how much to contribute regularly to meet your future financial goals.
Choosing the Best IUL Policy Using Our IUL Calculator
As you can see, this is just one company’s IUL policy. We work with many of the top IUL companies. If you are considering using IUL as part of your retirement income strategy, we are here to advise you on which company will work best for you. Each company will be different in the riders and benefits offered. Their allocation options will all be different. Most carriers offer the basic fixed interest rate as well as S&P 500, DOW, and NASDAQ allocations.
What you need to consider when comparing IUL policies:
Riders and Benefits
Enhance your coverage with options like long-term care, critical illness protection, and accelerated death benefits. Compare what each carrier offers to find what fits your needs.
Participation Rates and Caps
Find out how much of the index gains your policy captures. Higher participation rates and no cap on gains can mean more growth for your policy.
Interest Crediting Strategies
Optimize growth with a variety of flexible allocations tied to indices like the S&P 500, DOW, and NASDAQ, and fixed interest rates based on your comfort level.
Policy Charges and Fees
Design the policy to minimize the internal policy charges. Ensure your policy performs by understanding costs, including mortality charges, administrative fees, and potential surrender fees. Lower fees can lead to higher returns.
Flexibility and Customization
Tailor your IUL policy to fit your life. Adjust premiums, death benefits, and cash value allocations as your needs change.
Discover the Benefits of an IUL Policy with Our Free Calculator!
Unlock personalized insights on cash value accumulation, tax-free income distributions, and create a lasting legacy for your family. Get started today, and see how an IUL policy can help secure your financial future.
Frequently Asked Questions
What is an IUL Calculator, and how can it benefit me?
An IUL cash value calculator is a financial tool that we designed to estimate the potential growth and tax-free retirement income from an Indexed Universal Life Insurance policy. It helps you visualize long-term financial outcomes based on age, contribution amounts, and other variables. This tool is beneficial for tailoring your IUL policy to your individual financial goals and understanding the impact of different contribution strategies.
How accurate are the projections made by this IUL Calculator?
While our IUL policy calculator provides valuable estimates, it’s important to remember that they are based on assumptions and projections. Actual results can vary due to market performance, policy changes, and individual circumstances. Therefore, while these calculators are useful for planning, they should be used as a guide rather than a guarantee.
Can I use an IUL Calculator if I’m already nearing retirement?
Yes, an IUL Calculator can be a valuable tool regardless of your current age. For those nearing retirement, it can provide insights into how much you can contribute in the remaining years and the potential benefits you can still achieve with an IUL policy.
What should I do if the IUL Calculator shows I won’t meet my retirement goals?
If the IUL calculator indicates that your current plan may not meet your retirement goals, consider revising your strategy. This might involve increasing your contributions, adjusting your policy, or exploring additional financial products. It’s also advisable to consult a financial advisor for personalized advice and explore all available options.
