Can I Take Money Out Of An IUL?

Shawn Plummer

CEO, The Annuity Expert

How to Withdraw Money from an IUL Policy

Withdrawing Cash Value from IUL

Indexed Universal Life (IUL) insurance policies offer a way to access funds through cash value withdrawals.

Here’s how it works:

  • Understand Policy Terms: Review your policy to understand the terms and conditions associated with withdrawals.
  • Available Cash Value: Ensure you have enough accumulated cash value in the policy.
  • Request Withdrawal: Contact your insurance provider to request a withdrawal.
  • Tax Implications: Be aware that withdrawals may have tax consequences.

Taking Loans Against IUL

Another option is to take a loan against the cash value of your IUL policy:

  • Loan Provisions: Check your policy for loan provisions and interest rates.
  • Loan Request: Contact your insurance provider to apply for a loan.
  • Repayment Terms: Understand the repayment terms and how they might affect your policy.
  • Interest Accumulation: Keep in mind that the loan accrues interest and can reduce the death benefit if not repaid.

Important Considerations

  • Impact on Death Benefit: Both withdrawals and loans can reduce the death benefit of your policy.
  • Policy Surrender Charges: Early withdrawals might incur surrender charges.
  • Maintain Minimum Balance: Ensure your policy doesn’t lapse due to excessive withdrawals or loans.

Comparing Withdrawl vs. Loan

    Cash WithdrawalsDirect access to cash valueTax implications, possible surrender charges
    LoansBorrow against policyInterest accrual, potential reduction in death benefit


    Accessing money from an IUL policy can be done via cash value withdrawals or loans. It’s crucial to understand the implications of each method to make an informed decision.

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    Shawn Plummer

    CEO, The Annuity Expert

    Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

    The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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