Four Ways Indexed Universal Life Insurance Can Present Powerful Savings

CEO of Valor Financial.

Beal Financial group CEO Brandon E. Beal reflects that it’s a volatile time, with many Americans having suffered great losses—not only this year but also since the start of the Covid-19 pandemic—through such traditional savings vehicles as the 401(k), IRA and 529.

Permanent life insurance policies are a strategy that the wealthy have utilized for over 100 years, and this model is now accessible to everyday people. As a disclosure, my own company Valor Financial, in collaboration with Beal, is one provider of indexed life insurance solutions.

In this article, I want to highlight some ways in which the offerings presented by indexed universal life insurance (IUL) present a powerful alternative for investors. While many individuals and leaders may not be familiar with this model, IUL can offer investors the same amount of upside growth as many traditional savings plans—without the worry of losing hard-earned money due to a volatile market.

There are four major working components of the IUL that make it such a powerful force.

1. IUL policies contain no risk of loss due to a volatile market, as can be the case with a traditional 401(k) or IRA. Policyholders are protected by what’s called “the floor,” which is usually set at 0%. So if the market spirals down to -30%, your IUL won’t be affected but rather credited 0% for the timeframe.

2. Secondly, IUL presents a high capacity for growth and accumulation. On average, IUL returns about 10% to 12% annually.

3. Thirdly, unlike most IRAs and 401(k)s, you can access your cash as early as year two without penalties, fees or taxes. This is just one more unique and attractive component of the IUL investment model: It enables policyholders to access their money and function

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