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We understand the importance of securing your family's financial future. Our mission is to provide tailored financial solutions that resonate with your unique needs, whether you're Ethiopian-American or from any other background.
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We pride ourselves on our deep understanding of diverse cultural communities and their financial needs. Our team is committed to providing personalized services that respect your cultural background.
Why Choose Selamta Financial for Your Insurance Needs?
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The primary purpose of life insurance is to provide financial benefit to dependents upon premature death of insured person.
At Selamta Financial, we offer a range of life insurance solutions designed to protect your loved ones and ensure their financial security.
Tailored Solutions: We offer personalized insurance plans that cater to your unique needs and circumstances.
Peace of Mind: Ensure your family's financial stability with our reliable and trusted life insurance policies.
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What is Indexed Universal Life (IUL)?Indexed Universal Life (IUL) is a type of permanent life insurance that combines a death benefit with a cash value component. The cash value earns interest based on the performance of a stock market index, such as the S&P 500.
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How does Indexed Universal Life (IUL) insurance work?vWhen you pay a premium, a portion covers the cost of insurance, and the rest goes into your cash value account. The cash value can earn interest based on the performance of the chosen index, with potential annual interest rates ranging from 5% to 10%.
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How much can I start with for an IUL policy?We recommend starting with varying amounts depending on your age range, ranging from $150 to $1000 or more.
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What are the advantages of IUL?Advantages include less risk due to no direct investment in the stock market, potential interest rates ranging from 5% to 10%, tax-free interest earnings, easy access to cash value, and options for using the policy as a tax-free retirement income.
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What are the disadvantages of IUL?Disadvantages include the time it takes for cash value to grow, potential high cost of insurance based on age and health, and the possibility of not earning interest in years of poor index performance.
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What is the age range to qualify for an IUL?Anyone from 15 days old and above can qualify for an IUL policy.
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Do I need a medical exam before I get approved?Generally, IUL policies do not require medical exams. However, you may need to provide medical records and consent to a health check during the application process.
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What are some reasons people get declined for an IUL?Reasons for denial include recent felonies or DUIs, being overweight, personal history of cancer, alcohol or substance abuse, or previous declined or rated life insurance applications.
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Do I have to pay taxes on the interest earned on my cash value?No, you do not pay taxes on funds accessed from the policy as a loan, but you may be required to pay taxes if you cancel the policy.
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Is IUL better than a 401k or IRA?While IUL and retirement accounts like 401k and IRA have different benefits, IUL offers advantages such as flexible funding, tax-free interest earnings, and protection from market volatility.
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What is the difference between an IUL and Whole Life Policy?IUL's cash value growth is based on stock market index performance, potentially resulting in higher interest rates, while Whole Life cash value growth is based on the company's performance, often capped around 5%.
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How soon can I access funds in my cash value?Generally, it takes 5 to 10 years to accumulate enough funds for withdrawal, with a minimum withdrawal amount of $500. You may access funds after 12 months with a lump-sum contribution.
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What happens to my cash value when I pass away?The cash value is added to the death benefit and paid out to your beneficiary, providing additional financial protection.
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Can I fund the policy with large sums of money at once?Yes, depending on your death benefit, you can overfund the policy with more money to accelerate cash value growth.
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How do I access money from my cash value?You can either withdraw the cash value, reducing what you have accumulated, or take out a loan against the cash value, maintaining uninterrupted compound interest.
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