The Tax-Free Power of an IUL
Indexed Universal Life (IUL) insurance isn't just protection—it's a tax-advantaged wealth vehicle that offers market-linked growth with downside protection and flexible access to your money.
What Makes IUL Different?
Unlike traditional life insurance or investment accounts, an IUL combines three powerful benefits into one strategy:
- Market-Linked Growth: Your cash value is tied to market indexes like the S&P 500, giving you upside potential
- Downside Protection: A 0% floor means you never lose money when markets decline
- Tax-Free Access: Withdraw or borrow against your cash value without triggering taxes
The Tax-Free Triple Play
1. Tax-Free Growth
Your cash value grows without annual tax bills, allowing compound growth to work its magic uninterrupted.
2. Tax-Free Access
Access your money through policy loans or withdrawals without creating a taxable event—perfect for retirement income or major purchases.
3. Tax-Free Transfer
Your death benefit passes to beneficiaries income-tax-free, creating a powerful legacy tool.
Real-World Applications
IULs are particularly powerful for:
- High earners who've maxed out 401(k)s and IRAs
- Business owners seeking tax-efficient wealth accumulation
- Parents building education funds with flexibility
- Retirees wanting tax-free income streams
Important Note
IULs are long-term strategies that work best when properly structured and funded. Work with an experienced advisor to ensure your policy is designed for maximum tax efficiency and growth potential.
Important Disclosure
Downside Protection Clarification: References to "downside protection" or "0% floor" mean that your principal will not receive a negative interest rate credit during market downturns. This does not guarantee absolute principal protection against all risks, including insurance company insolvency or policy lapses.
Tax-Advantaged Accounts: Tax treatment depends on individual circumstances and may change. Consult with a qualified tax professional regarding your specific situation.
General Information: This content is for educational purposes only and does not constitute financial, legal, or tax advice. Individual results may vary based on personal circumstances.
Jon D. O'Neil is a licensed financial professional. For personalized guidance, schedule a consultation at www.speakwithjon.com
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