My Choice IUL®
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What is Indexed Universal Life Insurance
My Choice IUL®
As you plan for the future, a wide range of options are available. IRAs, 401(k)s, savings accounts, mutual funds, CDs … the list goes on, and the options can be confusing. If taking care of your loved ones and building your best financial future top your list, our indexed universal life insurance (IUL) can help you work toward both these goals. Indexed universal life insurance protects your loved ones while providing the opportunity to build cash value.
My Choice IUL offers two ways to grow cash value: a fixed account, which earns a competitive, current interest rate; and an indexed account that earns interest linked to the performance of the S&P 500® Index1.
Flexibility to Fit Your Life
This indexed universal life insurance also provides flexibility in timing and amount of payments2. That means if you get a raise, receive a tax refund or reach a point in your life where you have more available income, you can add more funds to your account3.
How My Choice IUL Works
Let My Choice Work for You
The WoodmenLife My Choice IUL meets you where you are in your life. Whether you’re just beginning to plan for the future, close to retirement or past your working years, we’ve designed this product to help you meet your goals4. My Choice IUL can accumulate cash value over time, so funds may be available to cover a financial emergency or supplement your retirement income5.
What’s your goal?
Building the best financial future for your family can seem overwhelming. Take a breath and let us help.
Cross the Retirement
You’ve worked hard, and you’re starting to think seriously about what your retirement will look like. Do you have enough put away to enjoy the retirement you want?
Leave Something Behind
My Choice IUL can pay a death benefit to the people and/or organizations you love. You can choose a face amount starting at $25,000. When you’re gone, your beneficiaries will receive the death benefit.
The money you leave behind can help make a big difference in the lives of those that mean the most to you. This could be your spouse continuing to afford the life you live now, your children being able to take care of your funeral costs and debts or your church making improvements to their building.
Protection and Growth
The premium amount goes toward the cost of your life insurance plus any expenses related to your certificate. The rest will be set aside for potential growth. If you wish, you may customize this premium so you are contributing even more each month to your cash value.
Income Tax-Free Death Benefit
You can take comfort in knowing you are providing a planned gift. Your beneficiaries will not have to pay income taxes on the money they receive6.
Build Your Assets
My Choice IUL gives you the freedom to build assets through cash value accumulation. It provides the potential for growth linked to an index while still having an income tax-free death benefit.
Set Aside Money to Grow
My Choice IUL lets you choose how you’ll grow tax-deferred cash value over time. Two account types are available: an indexed account and a fixed account. You have the option to grow your funds in either or a combination of both. You also have the option to transfer these funds from one account to the other.
Your indexed account will be credited, linked to the performance of the S&P 500® Index (excluding dividends) over a specific time period, up to a maximum cap rate. This gives you the ability to take advantage of an up market. If you prefer a more conservative approach to growing cash value, the fixed account could be right for you. Your account will earn interest at a competitive current interest rate that will never be lower than the minimum guaranteed interest rate. The fixed account may be outperformed by the indexed account in up markets, but provides an opportunity for steady, stable growth.
Protection from Market Downturns
Your indexed account also protects you against a down market with a guaranteed 0% floor7. This means your certificate’s cash value will not lose money because of market-based losses.
You will not pay taxes on your cash value gains until you make a withdrawal5.
Premium Payment Options
You will have the choice to either pay your premium with regular payments or a lump sum payment. Part of your premium will pay the cost of insurance and any expenses related to your certificate. You then choose to place your remaining premium into your fixed or indexed accounts.
When you pay your premium, it will be placed into your fixed account which earns interest on a daily basis. On the 20th of the month, any part of the premium you’ve chosen to move to the indexed account will create a segment (a cycle that starts on the 20th of each month and runs for 12 months from that date). Interest will be credited to the segment’s ending balance after it matures in one year. This segment’s balance will then be moved into a new segment. The value of your indexed account is the total of the segment values.
Access Funds When Needed
My Choice IUL offers the potential to accumulate cash value that you can access when you need it most. The growth to your cash value, especially if you make contributions above your minimum required premium, could become a source of tax-deferred money in your retirement years.
Your cash value is available through a partial surrender or loan5.
If you need to withdraw money from your My Choice IUL, you can request a partial surrender of your certificate’s cash value. This amount is income tax-free up to the amount you have paid into your certificate8. However, the available amount may be impacted by cost of insurance and any riders. You never have to repay the withdrawn amount, but it will reduce the cash value and death benefit of your certificate.View Surrender Charges
Another way to access cash from your My Choice IUL is by taking out a loan against your cash value. The loaned amount may be tax-free, but it will be charged interest. You can choose to pay back the loan, or the loan amount will be paid through a decrease in your death benefit.
Supplemental Retirement Income Stream
As you near retirement, you may access the cash value in your My Choice IUL to supplement your other sources of retirement income5.
You can take comfort in knowing that the cash value in your My Choice IUL will be available when unexpected expenses come up5.
Help During Illness
When the unexpected happens, My Choice IUL offers protection with Chronic and Terminal Illness Accelerated Death Benefit Riders9. These riders allow you to access a portion of your life insurance benefits while you are still living — at no additional cost.
Customize Your My Choice IUL
Discuss Your Needs
How much do you want to leave behind and how much extra would you like to build for retirement? Whether you’re just starting out or have already considered your needs, your Representative will help you determine how to get there.
Make a Plan
You’ll work with your Representative to determine payments that fit within your current budget, while still helping you accomplish your long-term goals. Don’t forget, you can always increase your payments down the road.
Enhance Your Plan
You can personalize your indexed universal life insurance coverage with a variety of riders at added cost.
Connect with WoodmenLife
To learn more about purchasing our life insurance or retirement products, fill out the Get a Quote form or search for your local Representative. Your Representative will contact you to prepare a customized plan that best meets your specific needs and budget.
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