Benefits of Indexed Universal Life Insurance


Indexed Universal Life Insurance policies have many benefits and features besides a death benefit. When you are older you only concern for your money is cash flow. Will I have enough money coming in each month to retire and live comfortably? A little adjustment now can make a big difference in the future. Consider an Indexed Universal Life Insurance policy.

1st Benefit - Extend Retirement Cash Flow for up to 30-40 additional years

Studies have shown that by just adjusting where you are currently contributing your money towards could give you additional cash flow to use in retirement for an additional 30-40 years. As of right now, you will live for at least 20-25 years in retirement and you could go through all of your traditional savings, like your 401K, Ira, or mutual funds.

Your money inside an Indexed Universal Life Insurance policy grows on a tax-deferred basis and when you take out the money, it comes out tax-free. Keep in mind that you will have no risk and no management fees. This creates perfect trifecta in a savings program.

All of this contributes to your money lasting longer and when you finally need it, it will be there and it will come through for you.

2nd Benefit- No 59 ½ rule

As with all qualified plans, such as a 401k, Ira, or other qualified policies, you must wait until you obtain the age of 59 ½ before taking out your money or you will be subject to a 10% IRS early withdrawal penalty.

All IUL policies allow you to take money out of your policy when you need it without a penalty. It is your money, why should you have to pay to access it. Think about it, even if you have equity in your home you have to pay a fee to access it and you must be approved for a new loan.

Some people use their IUL as their own bank. They fund the bank for 7-10 years and use the cash value to purchase their vehicles. They pay their policy back the principal and interest they would have paid the bank or credit union and their policy cash value explodes. When the go to retire, that money will be used to fund their cash flow in retirement. Also, some people are able to retire in their 50's because of these policies.