Accessing Tax-Free Income
You can access the cash value in an IUL through tax-free withdrawals or policy loans. These funds can be used to supplement retirement income or meet other financial needs without triggering taxable events.
A vehicle for Predictable, Safe, Tax-Efficient Wealth for Lifetime: Protection from Market Downturns, Tax Advantages, Flexibility, and Growth Potential.
An Indexed Universal Life Insurance (IUL) policy is a type of permanent life insurance that offers both death benefit protection and the potential for cash value growth linked to stock market indexes like the S&P 500. This cash value growth is tax-deferred, and IULs provide a way to participate in market gains without the risk of losing money when the market declines.
You can access the cash value in an IUL through tax-free withdrawals or policy loans. These funds can be used to supplement retirement income or meet other financial needs without triggering taxable events.
Customizable options to adjust premium payments, payment frequency, and death benefit amount.
IULs offer significant tax advantages, including tax-deferred growth, tax-free withdrawals up to the amount of your contributions, and a tax-exempt death benefit. These benefits make IULs an attractive option for those seeking to minimize taxes during retirement.
Ensure timely premium payments to maintain lifetime coverage. Get lifelong protection for yourself and your loved ones in various situations.
Never risk losing your principal while enjoying steady growth within a set range each year, typically capped at 9% and floored at 0%, based on index returns like the S&P 500. This offers greater cash value potential than traditional fixed-interest universal life insurance and guarantees no less than 0% return, even if the market drops.
Ryan: $736,439 at age 65
Paul: $622,202 at age 65
Consider how 25-year-old Ryan decided to invest for just 10 years, putting in a total of $50,000. After that, Ryan stopped adding any more money. Even so, Ryan ended up with more savings than Peter, who invested for 30 years and contributed three times as much, totaling $150,000.
This example highlights the power of starting early. The earlier you begin saving, the more your money can grow over time, thanks to the incredible effect of compound interest. As Einstein famously said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” So, start saving now and make each year work for you!
*Please note that tables and charts are meant for illustration only and do not represent any specific insurance policy. For precise details, refer to your individual policy. All guarantees and obligations depend entirely on the issuing life insurance company’s ability to pay claims. The example assumes an annual interest rate of 6.44%, with approximate values shown.
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