Life insurance is normally thought of as a “Death Benefit”,
but it can be structured as a Tax-Free Retirement Account.
Phases of Retirement Planning
Contribution Phase
- When you deposit money into your account, you pay taxes up front at the current tax rate.
IUL Contribution Limits UNLIMITED Contribution
Accumulation Phase
- While your money grows, it is Tax-Free.
Distribution Phase
- When you withdraw from your account, the funds are 100% Tax Free.
Transfer Phase
- Upon transfer, the funds are transferred to beneficiaries 100% Tax Free.
Traditional IRA vs Index Universal Life
With a Traditional IRA, you receive a Tax Break on the contribution, but when you withdraw the funds (the bigger circle), 100% is TAXABLE.
With an Indexed Universal Life Policy, taxes are paid on the contribution (the smaller circle), but when you withdraw the funds, 100% is Tax Free. There are no limits on the amount you can contribute into this type of policy.
What do we think of when we hear the word Life Insurance?
Many of us think it is just a Tax Free Death Benefit.
While this is true, it can be designed as Living Benefit as well if structured properly.
There is No Contribution Limit on the amount we can deposit into your Index Universal Life policy.
Interest grows Tax Free and can be withdrawn before age 59 via a loan. Additionally it will provide a Tax Free Death Benefit to your beneficiaries.
How Interest is Credited in Your Tax Free Retirement Account
The following example is how the Index Universal Policy compared to an investment in the stock market. When the market goes up, you keep the gains up to a cap and when the market goes down, you keep all your gains and no losses – ever! Also, there is a minimum guarantee of either 1 or 2% if the index goes down.
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That’s a $12,705 Tax Free Difference!
Compared to Money Invested in the Stock Market, your account goes up and down. Gains are not locked in and there are no minimum guarantees.
In an Index Universal Life policy, Your gains grow tax free, tax free withdrawals, and Tax Free Death Benefit to your beneficiaries.
Become Your Own Bank
What if you could become your own bank? What if you could do what Banks, Credit Unions, and wealthy individuals do everyday. Creating Arbitrage keep the interest. Stop paying Interest to the Bank. Develop a Retirement Plan Income Tax Free.
Avoid the Government Plan and Create Your Own Plan…
Your Own Plan you will have more money for you now, more for your retirement, and more for you loved ones and more of it of income tax free!
Make an appointment to learn how you can Become Your Own Bank!