Have you ever wanted to grow your money without worrying about market downturns wiping it out? Indexed Universal Life (IUL) insurance might be the answer. IUL combines life insurance coverage with a cash value component that grows over time, offering a hybrid solution for protection and “safe” financial growth. Unlike term life insurance, which offers temporary coverage, or whole life insurance, which includes a cash value component tied to company dividends, IUL stands out by linking cash value growth to stock market indexes like the S&P 500 or NASDAQ. This means that your cash value grows when the market performs well, but a 0% floor ensures your money is protected during downturns.
IUL’s perks are hard to ignore. Its cash value growth is tax-free, and you can access it without penalties or age restrictions. Additionally, the death benefit is paid to your loved one’s income tax-free, offering financial support or covering final expenses. However, IUL policies are long-term commitments and can be more expensive upfront. Missteps, like triggering taxable events, can occur without proper guidance, so working with an IUL specialist is essential. If you want market-linked growth with downside protection and a tax-advantaged way to build retirement income, IUL could be a strong fit for your financial goals.
source: https://iulmadeeasy.com/what-is-an-iul/
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