Indexed Universal Life (IUL) insurance is a life insurance policy that includes a savings component linked to a stock market index. While an IUL policy is not an investment, I’m so thankful. With investments you can lose money. There is no risk with an IUL. IUL’s can provide potential benefits such as returns tied to the market’s performance, downside protection, and a guaranteed minimum interest rate. This means when the market is having a bad year; you still win. This type of insurance can be a useful tool for building wealth, but it’s important to weigh the benefits and costs.
One benefit of an IUL policy is that it is not an investment, meaning you will not lose money due to market downturns. Additionally, an IUL policy can provide tax advantages. The cash value grows tax-deferred, and policyholders can access the cash value tax-free through loans or withdrawals.
If you’re considering an IUL policy as part of your financial strategy, it’s essential to have a long-term plan. While the cash value in an IUL policy grows at different rates, it isn’t unusual for your policy to double every 7-10 years.
In addition to IULs, there are other strategies for building wealth over the long term. One is to focus on saving and investing as much as possible, while minimizing debt and living below your means. Another is to increase your income by advancing in your career or starting a side business.
Please contact me Zachariah Russell if you have any questions.
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