This tool will help you estimate the potential values and benefits of an Indexed Universal Life (IUL) policy.
How to Use the IUL Estimator
To use the IUL estimator, please fill out all the fields in the calculator form:
- Age: Enter your current age.
- Annual Premium: Enter the amount of money you intend to pay annually.
- Number of Years to Pay Premiums: Enter the number of years you plan to pay these premiums.
- Expected Annual Interest Rate: Enter the interest rate you expect to earn on your investment, expressed as a percentage.
- Current Savings: Enter your current savings amount.
- Annual Increase in Premium: Enter the annual increase in premium you expect, expressed as a percentage.
How It Calculates the Results
The IUL estimator uses your inputs to project the expected value of your IUL policy. It performs the following steps:
- Accumulates the annual premiums over the specified number of years, accounting for the annual increase in premiums.
- Applies the expected annual interest rate to both the premiums and the current savings amount.
- Combines the projected values of the accumulated premiums and current savings to calculate the final estimated value.
Limitations
This calculator provides an estimate based on the input parameters and the simplified interest calculation. Actual returns may vary due to market conditions, policy expenses, fees, and other factors.
Use Cases for This Calculator
Calculate IUL Premiums
Provide your age, gender, desired death benefit, and desired cash value to estimate the premiums for an Indexed Universal Life insurance policy tailored to your needs.
Estimate Cash Value Growth
Input your premium payments and expected interest rate to project the potential cash value growth over the life of the policy, helping you make informed financial decisions.
Compare Death Benefits
Adjust the death benefit amount and analyze how it impacts your premiums and potential cash value accumulation, empowering you to choose the most suitable coverage level.
Analyze Policy Loan Options
Explore scenarios by taking loans against your policy, entering the loan amount and interest rate to understand the impact on cash value and death benefit payouts.
Illustrate Tax Implications
Enter your tax bracket and policy details to visualize the tax advantages of an IUL compared to other investment options, aiding in tax planning strategies.
Optimize Premium Allocations
Allocate your premium payments between the insurance and investment components to see how adjusting these allocations affects your policy’s performance and benefits.
Plan for Retirement Income
Input your desired retirement age and income to see how an IUL policy can supplement your other retirement savings, providing a comprehensive overview of your financial future.
Forecast Surrender Value
Specify the number of years into the policy and evaluate the projected surrender value, helping you understand the liquidity of your investment in different time frames.
Understand Policy Flexibility
Explore the flexibility of an IUL policy by adjusting premium payment frequency, coverage period, and riders to tailor the policy to your changing financial needs and goals.
Educate Yourself on IUL Benefits
Learn about the benefits of an Indexed Universal Life insurance policy, including potential market-linked returns, downside protection, and tax advantages, to make an informed decision about your financial security.