Max-Funded IUL

Everyone agrees that life insurance is a must have, at the very minimum pure death benefit, and one that has enough value for your circumstances according to a DIME analysis. Even better is a financial product that gives you death benefit and a financial NEST EGG (cash value) to draw from at anytime for any reason.

 

Before I explain what a Max-funded IUL (Indexed Universal Life) is, lets begin by highlighting the benefits of an IUL life insurance plan. I like the description from the website taxfreewealthplan.com:

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• You don’t pay taxes on growth or principal. Ever.‍​

• Average historical returns of 5-7% annually. (Tax-free, and net of fees and costs)

• ‍Your Account is GUARANTEED not to go backwards.‍

• ‍Your money is Liquid. (Take money out any time you want – for any reason – without penalty – WHILE 100% of your money continues to earn COMPOUND interest.)

• You are not required to report money you take out to the IRS. (The IRS doesn’t consider money taken out as ‘income’ – so there’s no tax.

 

With a Max-funded IUL insurance, you contribute the maximum premium allowed under tax law and minimize the death benefit, since the focus here is not the death benefit, but the build-up of cash value. Unlike minimally funded policies that emphasize death benefits, max-funded IULs prioritize building cash value that can be accessed during your lifetime through policy loans or withdrawals. It is an excellent vehicle for:

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• Income replacement

• Retirement income supplement

• Amplified cash value accumulation

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This is not suitable for everyone and your needs have to be carefully evaluated by a licensed professional and the IUL structured correctly for this to work for you. A lot of people are taking advantage of this already.

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