Indexed Universal Life Insurance in New Jersey

Flexible Coverage with Cash Value Growth Potential

When life insurance can do more than protect your family, it becomes a strategy. Indexed Universal Life (IUL) is a permanent life insurance option that combines lifelong protection with the opportunity to grow cash value tied to the performance of a stock market index—without the risk of direct market losses. For South Jersey professionals and business owners looking for tax-advantaged growth, IUL offers unique benefits.

What is Indexed Universal Life (IUL)?

An IUL policy is permanent life insurance with a built-in savings component. Unlike traditional whole life policies with fixed interest, an IUL links your cash value growth to a stock market index such as the S&P 500. Here’s what makes it stand out:

• Upside Potential – Benefit from positive index performance up to a capped rate.
  
• Downside Protection – Your account has a “floor,” so even if the market drops, your cash value won’t decrease due to market losses.
  
• Lifelong Coverage – Protection that lasts a lifetime as long as the policy is funded properly.
  
  

This makes IUL an appealing option for those who want protection, flexibility, and growth without taking on market risk.

Key Features of IUL Policies

When you choose an IUL policy through Hensh Group, you gain access to benefits like:

Flexible Premiums

Adjust contributions within limits to fit your budget.

Cash Value Growth

Earn interest based on market index performance without direct investment.

Guaranteed Minimum Interest

A built-in floor ensures you never earn less than 0%, even in a bad market year.

Tax Advantages

Cash value grows tax-deferred, and withdrawals or loans can be tax-free if structured properly.

Policy Loans

Access funds from your policy while keeping the death benefit intact (often used in strategies like Infinite Banking).

Considerations Before You Commit

IUL isn’t for everyone. To make the most of this strategy, you need consistent funding and a long-term view. Other important points:

• Caps on Growth – While you benefit from market upswings, there’s usually a cap on gains.

• Cost of Insurance – Charges can increase as you age, so policy design matters.

• Proper Structuring is Critical – Overfunding within IRS guidelines prevents policy lapses and keeps tax advantages intact.
  
  

At Hensh Group, we walk you through the details and customize the design for your goals.

Is IUL Right for You?

This strategy is ideal if you:

• Have strong cash flow and want additional tax-advantaged savings beyond 401(k)/IRA limits.
  
• Want financial flexibility with access to policy loans for opportunities or emergencies.
  
• Need a combination of protection, retirement income potential, and estate planning.
  
  

It may not be the best fit if you only need short-term coverage or have limited budget flexibility. In that case, we’ll explore simpler alternatives like term life insurance.

Our IUL Carriers & Expertise

We partner with reputable insurers such as National Life Group, known for strong IUL products and policy performance. Our expertise ensures you get clear illustrations, realistic projections, and a structure tailored to your needs.

Next Step: Get a Personalized IUL Illustration

See how an Indexed Universal Life policy could work for your financial goals. Schedule a free consultation today for a custom illustration and strategy review.