Fixed Index Universal Life (FIUL)
Many of our clients today are looking for ways to use fixed indexed universal life (FIUL) as a way to build a tax free income retirement, save for college, or have cash in hand for an investment or emergency. FIUL provides many solutions for you and it’s
an important part in creating a secure financial plan.
Most important, it provides a death benefit for your family
when they may need it most, as well as additional benefits to you while you are still living.
Our goals using FIUL are simple and straight forward: To eliminate income tax on retirement income, increase retirement income, reduce Investment risk and hedge against inflation.
Benefits Of This Strategy
Avoid Stock Market Risk
Your cash value can be credited with an interest rate based on increases in a market index, with protection from market index decreases (zero floor).
Funding Amounts
With this "Rich Man's ROTH" policy you have complete freedom to choose a death benefit and an premium amount of your choice to build the cash value you desire on a tax-advantaged basis.
Death Benefit & Living Benefits
Accelerated death benefit riders, offered with life insurance, give you access to your death benefit early. "Living benefits" can be utilized when certain conditions are diagnosed, such us Critical illness, Terminal illness & Chronic illness
Access to Flexible Tax-Free Retirement Income
An amount loaned out of your life insurance policy is not treated as "paid out of the policy" and is therefore not included in taxable income, as long as your policy remains in force.
FAQs
We’ve got you covered!
How is an IUL different then a 401k?
Pay taxes on the sed or the harvest? Unlike with traditional 401(k)s, where the money invested is pre-tax, the IUL is funded with non-qualified money, or after-tax dollars. So what you pay into IUL has been taxed already. That’s good news for future income – tax-free retirement income! IUL also offers the advantage of a tax-efficient death benefit for loved ones. IUL cannot lose $$$, your principal, to a recession, however money within a 401(k) plan is exposed to losses from market downfalls. Last but not least, You can pour money into the IUL while other retirement options have restrictions on the amount of contributions you can make
WHAT ARE LIVING BENEFITS?
The obvious value of life insurance is the death benefit it provides. With an FIUL, you get the death benefit PLUS the cash value benefit. These features are often the tip of the iceberg. Since everyone has unique goals, you no longer have to settle for just a simple one-size-fits-all life insurance policy. An FIUL can do more than pay a death benefit and provide cash value, it can also help you and your family in a time of need such as the qualifying events critical, terminal or chronic illness.
What’s the best reason to
use IUL?
Save on taxes in retirement, eliminate risk on your investment, create a tax free income stream. Because the Indexed Universal Life policy is so versatile, it has become a remarkable tool for individuals and businesses who are looking for a wealth accumulation tool that will not be subject to income taxes when it comes time to withdraw funds for retirement or pass the death benefit on to surviving loved ones.
Why Do You Want Life Insurance as Part of Your Portfolio?
Most people who look into IUL policies will use them as part of their retirement strategy as another stream of income or to fill in a pension or social security gap. Tax-free loans from the policy make this particularly attractive if you expect tax rates to increase in the future. If you do not pay the loan back – no problem. The loan is paid back by being subtracted from the death benefit when you pass. Some people looking into an indexed universal life policy use it as a supplemental wealth-building tool to their more traditional investments. There are no age restrictions on loans, unlike a 401(k) and IRA, so it allows for a more liquid wealth-building tool.
Plan ahead and achieve your financial goals with a Fixed Index Universal Life.
Your retirement should be filled with excitement, adventure and confidence. Get a plan in place today.
Live Chat With An Advisor
Legacy offers FIUL's from the top life insurance companies. Discover your options & reach out to our trusted agents if you have any questions along the way.