Here is a cool trick that few people know about life insurance.
Index Universal Life is Life Insurance you don’t have to die to use!
- Acts like Whole Life Insurance
- Has $ Cash Value Account
- Has $ Disability Income
- Has $ Tax-Free Retirement Income, for life!
- Has Tax-Free, Worry-Free Retirement
First of all, Life Insurance has changed dramatically since 2000. The types and plans of some companies are better than ever and can serve many kinds of purposes, not just a death benefit. In fact, you can use them as a layaway plan for retirement. And, your funds are secured in a safe and sane investment account where you will have the tax advantages of a Roth and the security of a passbook bank account. You can also have the growth rate of a high-end variable without the fear of loss. You can use it to protect your business and key employees too. You can also have living benefits and catastrophic medical expenses covered that health insurance will not, and so much more.
This is not your grandparent’s life insurance policy!
Insurance is safe and secure. Insurance is one of the most regulated industries in the US, by each State and the SEC. They have to have three times the assets for each policy issued. No one else has that. Insurance companies are not going anywhere while other investment funds come and go. In addition, other “traditional” investment firms can, and most of the time will lose your money more often than not. Your money will not be lost in an investment with a good insurance company and a policy that is properly written.
Why Is an IUL Better than other Insurance Types and Retirement Plans?
Indexed Universal Life, “IUL,” is the Swiss army knife of Life Insurance, as you can customize it to do so much more, including using it for retirement. The IUL can allocate the cash value into a premium and safe investment like an Index Fund. So, you get the cash value insurance attached either a fixed account or an equity of a premium index account.
Indexed universal life insurance works like a combination of a retirement plan placed inside of a life insurance policy. So, you have a stock investment plan that cannot lose your money!
The IUL has a much greater rate of return and can be a preferred way to grow wealth and provide for retirement. The best of the “indexes” is the S&P 500 or the Nasdaq 100 each made up of the top growing US companies. As the top companies perform, so do you. Plus, they offer a tax-deferred cash accumulation for retirement while keeping a death benefit. In addition, an IUL offers a variety of premiums that are typically less expensive than whole life insurance.
Here is the best part of an IUL, you are actually insured against loss with multi-billion-dollar solid companies that have been around for over 150 years.
So, if you had one of these Index Strategy Funds in March of 2020, or in 2008 or in 1987, you would not have lost a dime!
Here is a video on how it works:
Plus, there are fantastic Perks! You can have a Living Benefits Plan.
This is called a “LB,” usually a rider in a good insurance policy, covering chronic illness, critical illness, terminal illness on top of a death benefit protection. You can pull out money without penalty and use it to pay your medical expenses that your health insurance did not cover. (By the way, the best Health Insurance is actually Kaiser and Aetna HMO; they cover the most and have the best care.) This can be done through a term or an IUL life insurance policy, so you are covered and properly protected. So, if you get sick and your health insurance is not covering, and you do not have the money; with this plan you are covered! No worries.
The IUL can best be explained as a combination of a great retirement plan, a great investment fund and the best type of life insurance with tax advantages.
Here is why it is so good. With a 401(k) when the market goes down so does your retirement, when it goes back up, you do not get back what you lost; rather you build from what is left.
So, you are always starting over. Ouch! Just like any stock investment. However, with the IUL, these plans cannot lose money! That is right, when the market goes up, so does your wealth, when the market goes down, your IUL does not go below a growth rate of 0-3%, it never goes negative. Even a zero will be your hero!
Thus, you are safe from losses. Which should make any investor leap for joy.
Can an IUL be better than a Roth or 401(k)?
Absolutely. Unlike a traditional 401 (k)’s, an IUL is funded with “non-qualified money,” meaning after-tax dollars. So, what you pay into your IUL has been taxed already when it is at its pre-growth phase. And, then you are not being taxed again when you take it out when there is a much larger sum. Whereas, to be taxed later means when you are taxed when it comes out, you are paying much more in taxes, because the fund grew over time. This is one of the reasons an IUL is better than a 401K. The other reason is you do not lose when the market is down. This is a win-win, this means potentially tax-free retirement income!
An IUL also offers the advantage of a tax-efficient death benefit for loved ones. This makes them a good consideration if you want permanent coverage with lower premiums. You can also do this without the Universal Life Insurance and put it into a specially prepared Annuity.
An IUL is also beneficial to those who are looking to invest their extra money in a tax deferred or tax advantage. In this way, IUL’s provide a way in which individuals can grow and protect their income, as well as provide extra funds for retirement.
An Indexed Universal Life insurance or annuity can be one of the best things you can ever own to build and preserve wealth!
However, it needs to be properly structured with a reputable company. If not, you can be putting out more money than you should.
We can help you with this… firstname.lastname@example.org