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  • Writer's pictureRetirement and Annuity Advisor Jennifer Lang

Protect Your Retirement 100% Tax and Penalty Free.

Updated: Oct 22, 2021

It’s a fact: Consumers with a large IRA have a tax problem. If they don’t use it or leverage it, they will likely lose a significant portion to future taxes. A properly designed Indexed Universal Life Insurance (IUL) policy offers tax advantages no other single product can provide. It would take a combination of investments to equal all the advantages of an IUL.

IRS-approved tax advantages.

With an IUL, there are no taxes due during the accumulation phase when the policy’s cash value builds up. When you retire, you can take tax-free distributions of the cash value. IULs also allow the tax-free exchange of one policy for another without triggering income taxes. And when you pass on, the tax-free death benefit protects your loved ones against financial uncertainty.

Protection against stock market volatility

An IUL provides market-linked gains without market-based risk because it’s not an investment in the stock market. With an IULs principal-protection guarantee, gains from the previous year are locked in and the principal cash value remains the same. To put it simply, even if the stock market crashes, there are no losses.

Flexibility and control without limits

Unlike an IRA or 401(k), there are no limitations on the amount you can contribute annually to your IUL. As a result, the IUL can have a high starting cash-value based on what you contribute to the policy.

Even better, you can have access to your cash value at any age, any time, for any reason, without paying taxes or penalties. IULs also allow a tax-free exchange of one policy for another, plus the flexibility to change death benefit amounts, premium amounts and payment frequency.

Tip: 75% of Applicants Qualify for the Average ( 2 Hearts ) Insurance Standard Rating

Get an Instant IUL Life Insurance Quote and Apply Online in 5 minutes


Who benefits most?

The short answer: High earners who are frustrated with the inflexibility of their other tax-deferred accounts. It’s also an excellent option for consumers who have maxed out their retirement accounts or find themselves limited in the amount of tax-deferred income they can contribute to their 401(k)s. An IUL is also ideal for consumers who earn too much to qualify for a Roth IRA.

For younger clients, an IUL provides a great rollover solution when they’ve accumulated considerable savings in a former employer’s retirement plan. For baby boomers who have been delaying retirement planning longer than they should, an IUL can provide a last chance to secure their retirement years. Of course, the tax-free death benefit offers an advantage to primary wage earners who are concerned about protecting the financial security of loved ones after they’re gone.

The most cost-effective way to protect your retirement savings

These days, most consumers, if not all, are highly concerned about rising taxes and future market fluctuations eroding their retirement savings. Indexed Universal Life Insurance is a cost-effective way to protect your savings from taxes while providing you with supplemental retirement income for your entire lifetime.

There’s another benefit that warrants a mention. With an IUL, you are in control of your own retirement savings and taxes, not your fund manager.

At we help individuals and business owners build and protect wealth everyday. We work with over 25 of the top A and A+ rated life insurance companies to find you the best rate to fit your age, time horizon and financial goals. Put our expertise to work for you today.

To learn more about tax-free and tax-deferred strategies that are designed to protect your portfolio from stock market loss, visit us online for a free quote.

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