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With all the options in the marketplace for investment and insurance products, it can get confusing on what is a good choice and for whom. Here are some reasons why an Indexed Universal Life insurance policy might be a good fit for you.

1. You’re tired of the market going up and down.

It can be so nerve-wracking to watch your money increase and decrease, sometimes considerable amounts, through a system you can’t control and don’t have any say over.

2. You’re in the “danger zone.”

These are the seven to ten years before and after retirement where you simply can’t afford to lose any money.

Many people leave the largest percentage of their money in the stock market right up until the day they retire. Meaning: they are still at risk of losing it until then. At the last market downturn, people lost so much money they were unable to retire as planned and had to keep working to try and “make-up” what was lost.

3. You don’t want to give up on getting a competitive return.

Last year, many of my clients with Universal Life earned an average of 12-15%. This is great for a vehicle where your money is protected and guaranteed, particularly in comparison to most savings accounts where interest and potential earning is less than 1%.

You would like to ensure that at least some of your money is safe and guaranteed, regardless of what’s happening with the economy.

Indexed Universal Life has what they call an “upside potential with no downside risk.”

Meaning: your money goes up when the market rises, but you never take a hit or lose any money when it drops or goes down. This is important because when you lose money in the market it actually has to come back stronger for you to get back to where you were at. For example, if the market drops 20% it must rise 25% to earn that money back; if it drops 50% it must rise 100%!

In addition, you still pay management fees even when you’re losing money in the market. Put another way, you get hit twice. You have lost money and you are still required to pay a fee to the person/firm who oversaw that loss. Ouch.

You want peace in knowing you will have a reliable income the rest of your life, no matter how long that may be.

Indexed policies are great at income prediction and providing an income you can’t outlive. They are meant to be long-term holds, not something you can jump in and out of; the benefit being that when you are ready to retire, you’ll have a steady income stream you can count on.

While there are many choices, there is no perfect investment. Each one has some give-and-take. A great way to decide what’s best is to choose the one that meets the most of your objectives and priorities.

Indexed Universal Life is a great choice if you are concerned about safety, growth, and drawing an income in retirement, particularly if not losing money is more important to you than anything else.

So much light and love,
Karen

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