Solution

1. Protection against market loss. This is one of the best features in an IUL. This policy contractually guarantees that your cash value will NEVER have a negative return due to market losses - ever.

2. Upside growth potential. The cash value can also experience the potential for decent growth. If the stock market index that your policy is tracking (often the S&P500) goes up 5 percent, then your cash value will grow 5 percent too. There is a cap (limit) on the percentage, it is at 14 percent. This means if the market is performing at 20 percent, then you are capped at 14 percent.

EXAMPLE WITH ZERO LOSSES

S&P 500 - Market Vs. Index Performance

Starting Balance: $1,000.00

S&P 500 for 10 years

Market

Index

End of Year	Gain or Loss	Value of Account	Gain or Loss	VaIue of Account
2000		$1,000.00		$1,000.00
2001	-10.19%	$898.10	0.00%	$1,000.00
2002	-21.76%	$702.67	0.00%	$1,000.00
2003	21.53%	$853.96	14.00%	$1,140.00
2004	10.73%	$945.59	10.73%	$1,262.32
2005	4.76%	$990.60	4.76%	$1,322.41
2006	12.31%	$1,112.54	12.31%	$1,485.20
2007	4.66%	$1,164.39	4.66%	$1,554.41
2008	-40.19%	$696.42	0.00%	$1,554.41
2009	25.47%	$873.80	14.00%	$1,772.02
2010	12.78%	$985.47	12.78%	$1,998.49
Avg.	2.01%		7.32%

3. Death Benefit. It's a lump sum of money being paid to the beneficiary in the event of death.

4. Cash accumulation. IUL provides the potential cash accumulation within the policy. This cash can be accessed and used at the policy owner discretion, and the policy owner can make a tax-free withdrawal.

5. No minimum age or income requirement. IUL has no minimum age that an individual must attain to put this strategy into place.

6. No mandatory distribution. You get to decide how and when to use your money - not Uncle Sam.

7. Access at any age. Your money is accessible at any age (there is no penalty for early withdrawal like in any tax-qualified plans).

8. Protection from lawsuits. For individuals in high-income professions, especially physicians, due to the threat of a malpractice suit, this can be a good solution

9. Does not create taxation of Social Security Benefits. All money that comes from a tax-qualified plan (401k, SEP, SIMPLE, IRA, etc) during retirement will be included as income that can negatively affect the income taxation of an individual's Social Security benefit. Money coming out from IUL will not affect this at all.