What Is an IUL?
Indexed Universal Life Insurance is a type of permanent whole life insurance policy that provides a death benefit, and builds cash value that you can use while living.
Tax Free Passive Income
Section 7702 of the IRS tax code defines the criteria that life insurance policies must meet to qualify for tax advantages. It also determines how the proceeds from a life insurance policy are taxed. The cash value within an IUL grows tax-deferred, allowing for a more efficient accumulation of funds. This means you won’t pay taxes on the gains as they grow with compound interest over time in the policy.
Living Benefits
A unique feature of IUL is that it includes living benefits. Living benefits are for chronic illness, critical illness, and terminal illness. That means your IUL will pay you tax-free cash benefits as the policyholder even before you die. Chronic illness coverage can be compared to long-term care insurance.
Generational Wealth
Indexed universal life (IUL) insurance offers several compelling advantages for estate planning: Large, Tax-Free Death Benefit: The money paid to your beneficiaries is generally tax-free, allowing for the efficient transfer of a greater portion of your wealth.
No Market Risk
The insurance providers set a guarantee floor for your principal to protect it against losses in the market. Unlike a 401K that is subject to loss due to market volatility, the IUL does not have this risk.
Become Your Own Bank
The infinite banking concept is a financial strategy that utilizes the cash value component of an IUL, to create a personal banking system. Policyholders can borrow against the accumulated cash value for various needs, repaying the loan on their own terms.
Our Vision & Mission
Empowering Families with Financial Independence and Wealth Strategies
Our Vision
To liberate our clients from the traditional banking systems and paths to wealth creation.
Our Mission
To educate and assist with protecting your financial future with a personalized IUL.
Our Story
Unchained Wealth LLC is a newly established financial services company dedicated to helping individuals build generational wealth through Whole Life Insurance, specifically Indexed Universal Life (IUL) Insurance.
Our inspiration to start Unchained Wealth in August 2024, stemmed from our own experience with traditional 401ks and term life insurance policies, which were limiting and risky. We discovered the benefits of Indexed Universal Life Insurance, particularly its ability to build cash value and offer living benefits – an often overlooked financial tool. Our mission is to share this valuable information, empowering others to secure tax-free retirement income, protect their families, and build lasting financial legacies.
Guided by core values of transparency, equity and community. We are passionate about educating people on the financial strategies often kept hidden from the general public. We aim to help individuals break free from financial dependency, equipping them with tools for wealth-building that benefit them during their lifetime, not just after death.
At Unchained Wealth LLC, our commitment to our clients is clear and we prioritize your best interests above all else. Our goal is to educate and assist anyone who seeks to protect their assets and provide for future generations making financial security accessible to all.
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FAQs About Indexed Universal Life Insurance (IUL)
Is IUL a good investment for retirement planning?
Indexed Universal Life (IUL) insurance can be a valuable tool for retirement planning. It offers flexible premiums, a death benefit, and the potential for cash value growth linked to a stock market index. While it provides growth potential with less risk than direct stock market investments, it’s important to assess your personal goals, risk tolerance, and time horizon. Consulting with a financial advisor can help determine if IUL fits into your retirement strategy.
What are the tax advantages of an Indexed Universal Life Insurance policy?
IUL policies offer several tax advantages. The cash value grows tax-deferred, meaning you won’t pay taxes on gains as long as they remain in the policy. Additionally, the death benefit is generally paid out to beneficiaries tax-free. Policyholders can also take tax-free loans against the cash value, provided the policy is structured properly. However, it’s important to work with a financial professional to ensure your IUL remains compliant with tax regulations.
How does IUL compare to Whole Life Insurance or 401(k) plans?
Indexed Universal Life (IUL) insurance, Whole Life Insurance, and 401(k) plans all serve different financial purposes. IUL provides flexibility in premium payments, death benefits, and cash value growth tied to a stock market index, offering potential for higher returns with lower risk. Whole Life Insurance, on the other hand, offers guaranteed cash value growth and fixed premiums but tends to have higher costs. 401(k) plans allow for tax-deferred growth and employer contributions, but they come with limited access to funds before retirement. Each option has its own benefits, so it’s important to evaluate your financial goals when choosing the best strategy.
Can I borrow money from my Indexed Universal Life Insurance policy?
Yes, you can borrow money from your Indexed Universal Life (IUL) insurance policy. The cash value that accumulates within the policy can be accessed through loans. These loans are typically tax-free as long as the policy remains in force, and they do not require credit checks. However, any unpaid loans or interest will be deducted from the death benefit, so it’s important to manage loans carefully to avoid reducing the policy’s value. Always consult with a financial advisor to understand the full impact of borrowing from your IUL.
What are the living benefits of an Indexed Universal Life Insurance policy?
Indexed Universal Life (IUL) insurance offers several living benefits, making it a versatile financial tool. These benefits include the ability to build cash value that grows tax-deferred, which can be used for emergencies, retirement income, or other needs. Some policies also offer accelerated death benefits, allowing you to access a portion of the death benefit if you’re diagnosed with a terminal illness. Additionally, you can take tax-free loans or withdrawals from the cash value to help cover expenses during your lifetime. These living benefits provide flexibility and financial security during your life, in addition to the death benefit for your beneficiaries.