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  • Writer's pictureRetirement and Annuity Advisor Jennifer Lang

How the Upper 1% Grow Wealth Tax-Free

Grow tax-free wealth through an IUL Policy

Indexed universal life is a permanent life insurance policy that ties up the cash value of your premiums to stock market indexes like the S&P 500 and provides tax-free growth through a 'participation rate' ranging from 6-8% annually. The best part? If the market takes a downturn, you wouldn't lose money as the participation rate would be null at 0%. It may sound too good to be true but savvy investors have been using this investment vehicle for decades.

Why go with an indexed universal life insurance (IUL) policy?

Simple, to build tax-free wealth.

Our IUL policies allow you to invest and grow your premiums in market indexes such as the S&P 500 or Nasdaq 100. You'll see tax-free growth of around 6-8% on your cash value with a cap of 9% and a minimum participation rate of 0% which means you'll never lose money when the markets have downturns. Plus there are no income restrictions like most other tax-free investment vehicles. You can spend the money on whatever you need and still have a death benefit that covers your beneficiaries when you pass. We provide a best-of-both-worlds experience where your loved ones are covered in the future while you build wealth today for a future of your own.

Speak with an IUL expert to get started. Call us at: 1(916) 458-4515.

New! No Collateral Required Option Now Available!

Premium Financing has been available for over 50 years, but was primarily used for the ultra-wealthy as a way to pay estate taxes with no money out-of-pocket.

For example: $100 million estate x 40% = $40 million due at death to pay federal estate taxes. (Current Federal Estate Tax exemption not included.)

Today, we call it “Structured Premium Financing”, because we’re able to use the same chassis for paying estate taxes with little to no money out-of-pocket, and use it for other financial needs, such as: Key Person Policies, Buy/Sell Agreements, Debt Reduction, Annual Contributions to non-profit organizations, churches or universities with little to no money out-of-pocket for the donor,

Tax-Free Income Replacement, as well as Employee Retention for companies, corporations and universities who want to recruit and retain the BEST people in their industry.

Basic Requirements:

  • Annual income requirement of $100,000 - $250,000 for each participant

  • Needs to meet/justify minimum death benefits requirement of $1.5 million. Premium will vary based on applicant's age.

  • Corporate entities with minimum annual revenue of $750,000 for the last two consecutive years.

  • Able to make 5 Annual Premium contributions.

  • Liquid Net Worth requirement (125% of the cumulative premium payments in the first 5 years minus the contributions made by the business owner).

  • Individuals and companies that understand the use of leverage.



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