Indexed Universal Life (IUL) insurance is a strategic financial tool that allows you to grow your wealth with minimal tax interference. The tax-deferred growth of the cash value allows your money to increase without the IRS taking a portion annually. However, any excess is subject to income tax if you withdraw more than you’ve paid in premiums. Unlike traditional retirement accounts, such as 401(k)s or IRAs, IULs don’t have required minimum distributions (RMDs), allowing you to let your funds grow without being forced to take withdrawals at a set age. To maintain the tax-friendly benefits of your IUL, it’s important to work with a financial advisor or tax specialist who can help you navigate the details of your policy and avoid tax-related surprises. With its tax-deferred growth and income-tax-free death benefit, an IUL can be a powerful tool for building wealth and securing a tax-efficient retirement.
source: https://iulmadeeasy.com/understanding-tax-advantages-of-indexed-universal-life-insurance/
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