Because IULs offer IRS approved tax-advantaged savings and are funded with after-tax dollars, taxes are paid on the “seed” rather than the “harvest” leaving people with more money when they retire.
Savings are secured by the issuing company. Insurance companies are required by law to have 100% or more, of all liabilities covered by the company’s assets. IULs are offered by some of the oldest, largest and most financially stable institutions in the world.
Shortly after the market crash of 2008, The Wall Street Journal reported that IULs were “This year’s hottest life-insurance product … well-suited to an era of sudden ‘flash crashes’ and overall uncertainty: it appeals to people eager to capture stock-market gains while avoiding undue risk” (June 5, 2010).
Savings can be accessed prior to age 59.5 without penalty and allow for tax-deferred accumulation as well a tax-free distribution option.
Death benefits are paid to beneficiaries tax-free.
Account values are linked to indices such as Barclays and the S&P 500 index.
Through the use of IUL-based, three-to-one leveraged plans – our programs can also add up to three times (or more) money to retirement savings when compared to pre-tax plans (i.e., 401(k), 403(b), 457, IRAs) or after-tax options (i.e., Roth 401k, Roth IRA, certificates of deposits, taxable brokerage accounts, etc.) providing executives and key staff access to increased benefits without increasing budgeted amounts.
IULs offer an option to those who would like to save for the future without the risk – where their principal and interest gains are annually locked in and contractually protected against loss.