Question 1

What is an annuity and how does it work?

Accepted Answer

An annuity is a contract with an insurance company where you deposit money, it grows tax-deferred, and you can convert it into guaranteed lifetime income. Fixed-indexed annuities grow linked to the S&P 500 with a 0% floor — no market loss risk. FJ Life & Wealth shops top carriers like North American, F&G, and Nationwide to find the best annuity rates.

Question 2

What is Indexed Universal Life (IUL) insurance?

Accepted Answer

An IUL is a permanent life insurance policy where cash value grows linked to the S&P 500 with a 0% floor — you never lose money in a down market. As Doug Andrews explains in Missed Fortune 101, IULs allow tax-free growth and tax-free withdrawals via policy loans — unlike a 401(k) which is fully taxable at withdrawal.

Question 3

What is the difference between an IUL and an annuity?

Accepted Answer

Both offer tax-deferred growth and S&P 500-linked returns with downside protection. An IUL also provides a death benefit and is best for younger people building tax-free wealth. An annuity is primarily an income vehicle — ideal for converting savings into guaranteed monthly income in retirement. Many retirement plans use both.

Question 4

How much does life insurance cost?

Accepted Answer

Term life starts as low as $15-25/month for healthy adults. Final expense starts at $30/month. IUL typically starts at $200/month. Annuities can be started with a lump sum (IRA rollover) or monthly contributions. FJ Life & Wealth shops 7+ carriers to find your best rate.

Question 5

Can I roll my 401(k) or IRA into an annuity?

Accepted Answer

Yes. A fixed-indexed annuity is one of the most common destinations for IRA and 401(k) rollovers. You maintain tax-deferred status, protect your principal with a 0% floor, and can add a lifetime income rider to guarantee monthly income you cannot outlive.

Question 6

What is final expense insurance?

Accepted Answer

Final expense insurance is an affordable whole life policy for seniors ages 50-85. It covers funeral costs, burial, and outstanding bills. No medical exam is required and coverage typically ranges from $5,000 to $50,000.

Question 7

What is mortgage protection insurance?

Accepted Answer

Mortgage protection insurance is a term life insurance policy that pays off your remaining mortgage balance if you pass away, ensuring your family keeps the home debt-free. It features a declining benefit that decreases as your mortgage balance drops, keeping premiums affordable. Many plans include living benefits.

Question 8

What is whole life insurance?

Accepted Answer

Whole life insurance provides lifetime coverage with guaranteed cash value growth (2-4% annually), fixed premiums locked forever, and tax-free loans in retirement. It combines family protection with long-term wealth building, ideal for permanent estate and legacy planning.

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