Indexed universal life insurance

Traveling through space requires power, but also protection, and the flexibility to adjust to unexpected events. Indexed universal life (IUL) is kind of like that — flexibility with protection for your family and the power to grow cash value.

Ideal for clients who:

Are interested in having death benefit protection during their entire lifetime
Want the potential to grow cash values faster than with an interest only policy, and wants to avoid negative returns¹
Want access to their policy’s cash value as a source of income
Seek flexibility in their policy so it can adjust to their changing lifestyle

Because of these features:

It’s permanent
It links growth of cash value to indexes like the S&P 500® and has a 0% minimum “floor” on returns
It lets you acces the policy’s cash value through loans or withdrawals
It gives you the ability to adjust parts of the policy, within certain limits

Key benefits of indexed universal life

Provide a death benefit

Your loved ones get a guaranteed, tax advantaged death benefit if you die

This can protect your family from your early death and help ensure that your plans for them still come true

Build cash value and access it for financial needs

Your premiums create cash value that grows over time

Cash values can be accessed on a tax-advantaged basis for any financial need, including retirement income

Adjust premium and death benefit

Stay flexible with the ability to adjust your premium amount and death benefit based on future needs

Ask AuguStar

What is the “elevator pitch” for IUL?

Simply put, here’s what makes indexed universal life special: Upside potential. Downside protection.

Sounds interesting. Anything else I should know?

One great thing about IUL is that even though your cash value growth is linked to an index, like the S&P 500®, you won’t have any negative investment returns. But you should know, your upside is also limited to a cap (typically somewhere between 7-12%).

How IUL differs from other permanent products

More flexibility with your premiums, including how much and when you pay

You can adjust the death benefit amount your beneficiaries would receive as your needs change

You can also increase the policy’s values based, in part, on the performance of financial market indices²

Explore IUL

Now that you understand why indexed universal life insurance may be right for you, aim your telescope toward these materials to get a deeper understanding.

Bear in mind, we offer two types of IUL that share many of the same features, but are designed to address different goals. Protection IUL offers protection-forward coverage while Virtus IUL III is more focused on building assets then accessing them as income.

Virtus IUL III client guide Protection IUL client guide

¹ The deduction of any applicable policy fees may result in a loss of account value when market performance is poor.

² Interest linked growth is based in part on the movement of the selected market index, excluding dividends and is subject to applicable caps, spreads, and/or participation rates. When premiums are allocated to index accounts, the dollars are not invested directly in any index or security.

The S&P 500® Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by AuguStar Life Insurance Company. Standard & Poor’s® , S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by AuguStar Life Insurance Company. AuguStar Life Insurance Company‘s Virtus indexed universal life insurance is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index.

Withdrawals and loans may reduce the death benefit, cash surrender value and any living benefit amount.

Indexed universal life insurance issued by AuguStar Life Insurance Company, member of Constellation Insurance, Inc. family of companies. Product, product features and rider availability vary by state. Guarantees are based upon the claims-paying ability of the issuer. Issuer not licensed to do business in New York.

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