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If you’re looking for an alternate route to grow savings in the midst of investment volatility, indexed universal life insurance (IUL) is a powerful option.READ THE ARTICLE
While traditional savings vehicles, such as 401(k)s, IRAs and 529s, are more susceptible to market dips, IUL offers a long-term death benefit coverage that credits interest based on the performance of a market index. In that light, here are four components of its capabilities for upside growth:
📌 IUL policies contain much less risk of volatile market loss: They offer protection with what’s called “the floor” (typically set at 0 percent), meaning if the market drops, your IUL is credited the 0 percent for the timeframe.
📌 There is a higher capacity for growth and accumulation: On average, IUL returns offer seven to eight percent annually.
📌 You can access your cash earlier: Unlike with IRAs and 401(k)s, IUL permits you to access cash as early as year two with no “penalties, fees or taxes.”
📌 IUL accumulation and income is 100 percent tax-free: This is due to IRS tax code 7702, and can become increasingly more valuable the higher you are in tax brackets.
You don’t have to be part of the ultra-wealthy to reap the benefits of indexed universal life insurance. Market protection, lifelong tax-free income and the ability to leave behind substantial savings to heirs make this a savings vehicle you shouldn’t overlook.