Indexed Universal Life

Define Your Own Contribution Limits

Protection from Volatile Markets

Upside Growth Potential

Access to Cash Value

IUL versus Roth

What is an IUL?

Indexed Universal Life
Little Known Fact: You can (massively) over-pay for permanent life insurance, and in return you get Cash Value as an investment. Some key points that make IUL’s smarter than IRA’s for retirement savings are…
  1. IUL’s offer competitive growth over 20+ years, when compared with IRA’s. Historical market data supports this conclusion.
  2. No management fees. The interest crediting is based solely on index performance – there’s no investment manager making bets with your money and charging fees.
  3. Tax-free retirement income. Do you agree that income tax rates are likely to increase in the next 20+ years? IULs are not tax-qualified!
  4. Access to your money. You can take interest-free loans against your cash value, and not even pay it back. That loan is just deducted from your death benefit if you die.
  5. And fewer limitations on your contributions. You can invest more than in a Roth IRA, for instance. Much more!
  6. Did I mention that it is also life insurance?

Who are IUL’s *not* good for?

An IUL isn’t for everyone. There are some key points to be aware of.

First and foremost, an IUL is a long-term committment to invest. Most individuals who don’t understand IULs are unimpressed by the cash value growth in the first 5-10 years. You have to wait. The power of indexed universal life as an investment is the compounding effect – by year 20, you’ll see huge annual returns that make it all worth it. If you’re looking for a 5-10 year turnaround on your investment, try other products.

Following on that, you can get good returns if you start in your early 40’s, but even better is if you’re in your mid-20’s. At that age, you’re healthy and the life insurance part of the investment will be almost nothing, plus you have 4 decades to grow a massive retirement fund.

IUL - Indexed Universal Life to build a tax-free retirement