Tax Free Retirement

Updated: Feb 20, 2020

Sound too good to be true? With an Indexed Universal Life Insurance Policy, commonly referred to as IUL, is a wealth accumulation vehicle that provides policyholders with the potential to create a non-taxable retirement, while protecting themselves with Living Benefits life insurance simultaneously. The idea is that you can setup an indexed universal life insurance policy that grows huge amounts of cash value over the course of your working years. Thanks to the specific IRS code that allows tax-advantaged treatment of these permanent life insurance policies, this cash value grows tax-deferred. You can access these funds when you retire or later in life, through nontaxable participating policy loans, to create a tax-free retirement. Remember, its not about how much you can accumulate for retirement, you need to consider taxes on retirement income.



Why Indexed Universal LIfe if I have an existing 401K or Roth IRA?


An IUL policy might be a good fit for you if are looking to save more money for retirement while diversifying your tax risk. You might be already maxing out your 401k or Roth IRA contributions and an IUL structured properly can help you grow significant retirement funds. Another advantage of an IUL is the upside potential it provides through market growth while providing downside protection from market losses. In simple terms, the indexed universal life insurance policy "caps" the maximum interest you earn in a specific period. Yes you don't capture the full growth of the market during good times. However, the game changer is that the IUL policy will never credit less than 0%, so your policy will not lose value due to a decline in the index. You all remember 2008 and 2009 and heard the stories of individuals who were very close to retirement and lost more than half of their 401K value.



IUL with Living Benefits


Most people believe that you only benefit from life insurance if you pass away. Only 57% of Americans have life insurance and a large percentage of those with coverage have life policies without Living Benefits. What are Living Benefits you might be asking? Living Benefits are Accelerated Death Benefits Riders(ABR's) that are included at no-cost with all the A Rated (A.M. Best) insurance carriers we recommend to our valued clients. So if god forbid you were diagnosed with a qualified terminal illness and you had less than 2 years of life expectancy, you can accelerate up to 100% of the death benefit. The death benefit would payable to you tax-free and you could use the funds to pay for costly medical expenses such as out-of-pocket expenses not covered my health insurance, cost of living expenses or any other personal use. You may also access all or part of your death benefit, while living, if you experience a qualifying, chronic, critical illness or critical injury.


How Can I Learn More About IUL Policies with Living Benefits?


Let Direct Insurance Solutions be your trusted guide and help you navigate through the complex world of insurance.


Why Direct Insurance Solutions?

Award winning insurance agency that has helped thousands find affordable coverage and represents hundreds of regional and national carriers built on the following foundation:

Pillars:

  1. Offer the most affordable and comprehensive insurance solutions regardless of household budget

  2. Offer the best A rated (A.M. Best) insurance carriers

  3. Over 20 years experience to help you navigate through cumbersome underwriting process

  4. Offer best-in-class service

  5. Easy to do business with

Our mission at Direct Insurance Solutions is to get you the coverage you need, the services you want, and the respect you deserve, regardless of your budget. We only offer A Rated (A.M. Best) insurance companies like National Life, American National Insurance Company, Transamerica, AIG and many more

Contact us today and let us help you create a tax-free retirement strategy!

1-800-619-8959

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