What is IUL Insurance?
IUL Insurance, or indexed universal life insurance, is a type of permanent life insurance policy that offers death benefit protection for the remainder of your lifetime, as well as a cash value component that provides you with the opportunity for higher returns…
Pros and Cons of IUL Insurance
Tax Benefits of IUL Insurance Policies
Tax-Deferred Growth – The funds that are inside of an IUL Insurance policy’s cash value are allowed to grow tax-deferred. This means that there is no tax due on these gains unless or until the funds are withdrawn.
Tax-Free Access to Cash Value – IUL policyholders may be able to access funds from the cash value component tax-free by taking certain types of loans.
No Annual Maximum Contribution Limits – Unlike qualified retirement plans or traditional IRAs, there is no annual maximum contribution limit with an IUL policy. This means that additional funds can be contributed that allow for tax-advantaged growth.