Premature Withdrawal

Premature Withdrawal in the context of IUL policies involves withdrawing funds from the policy's cash value before reaching a predetermined age, often 59½. Key aspects:

• Potential Costs: May incur penalties, surrender charges, and tax implications.
• Impact on Policy: Reduces the death benefit and can affect the policy's growth and performance.

Advice for Policyholders:

• Consultation Recommended: Seeking advice from a financial advisor is advisable to comprehend the repercussions and explore alternatives.

Understanding the implications of Premature Withdrawal is crucial for policyholders to make informed decisions about their IUL policy's finances.