We offer an indexed universal life (IUL) insurance policy with flexible premiums, death benefit and premium allocation options so you can customize your policy. This product is similar to other universal life insurance products except the policy holder has the option to allocate premium to indexed accounts.
The following are things to know if you are considering an IUL insurance policy:
- You can vary your premium payments to fit your budget (within limits).
- Your premiums must be enough to keep the policy in force. If at any time and for any reason, there are insufficient funds in the policy, the policy terminates without value.
- Indexed universal life policies allow policyholders to allocate premiums into indexed accounts whose interest rates are based upon changes in value of market indices.
- The interest rate assigned to the policy's contract value will fluctuate based on the interest crediting options that the policy owner chooses.
- If you die, your beneficiary gets the death benefit. The death benefit could be the face amount or face amount plus the contract value, depending on which death benefit option you choose.
Advantages
- Your premium amount, premium allocation and death benefit are all flexible, within limits.
- Neither your death benefit nor your contract value will decrease if there is a decrease in value of the index associated with an indexed account; the interest rate credited to the indexed account will be 0.00%.
- You can take a partial surrender without giving up your policy altogether. Keep in mind surrenders will reduce the policy’s cash value and death benefit, and can increase the possibility of policy lapse. Partial surrenders could also have tax consequences, and you should consult with your tax advisor.
Disadvantages
- You are not guaranteed a minimum return on indexed accounts (other than the floor of 0.00%).
- Unlike other types of permanent insurance, IUL premiums and contract values aren’t guaranteed.
- You need to monitor your policy to make sure your death benefit remains adequate to meet your needs.
Horace Mann Life Insurance Company underwrites Horace Mann life insurance products.
WBIN-0412 (10/15)