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Stop borrowing from banks. Use a high-cash-value life insurance strategy to control your cash flow, build liquidity, and finance your life on your terms.
Indexed universal life (IUL) insurance combines lifelong coverage with a cash value component that can grow over time. Part of each premium goes toward the death benefit, while the rest builds cash value that’s linked to the performance of a market index, rather than a fixed rate set by the insurance company. That cash value can be accessed later through loans or withdrawals, often without triggering taxes, and the policy offers flexibility to adjust premiums and death benefits as life changes.
That flexibility comes with tradeoffs. IUL policies tend to have higher fees, premiums can increase as you get older, and while there’s upside potential, there’s also the possibility that the cash value doesn’t perform as well as expected.
Most people are told to think about retirement in terms of accounts — 401(k)s, IRAs, balances, and projections. What rarely gets discussed is how that money will actually be used later, and what happens when taxes, markets, or timing don’t cooperate. That’s where Indexed Universal Life tends to come into the conversation, not as a replacement for everything else, but as a different kind of tool.
An IUL blends permanent life insurance with a cash value component that grows based on a market index, without being directly invested in the market. It’s often used as a long-term strategy for people who want growth potential with guardrails, access to money without rigid withdrawal rules, and a way to create retirement income that isn’t fully exposed to taxes or market swings. Like any strategy, it comes with tradeoffs — which is why how it’s structured matters as much as whether it’s used at all.
IULs are often used to create a pool of money that isn’t tied to future tax rates. When structured correctly, the cash value can be accessed in retirement without adding to your taxable income. That gives you flexibility when deciding where to pull income from, especially if tax brackets go up later.
The years right before and after retirement are the most dangerous for a portfolio. IULs are designed to avoid market losses during those periods, trading some upside for stability. That protection can help prevent a bad sequence of returns from permanently damaging your income plan.
Unlike traditional retirement accounts, an IUL doesn’t come with required minimum distributions. You choose when to take income, how much to take, and when to pause. That freedom matters when real life doesn’t follow a clean retirement timeline.
You can work with an agent to find a life insurance policy and can get a personalized, free, and no-obligation life insurance quote in just a few minutes. It’s that easy to start protecting your family’s financial future! Requesting a life insurance quote through AIG Direct is now faster and easier than ever!
With My Term Life Guy, you can get quality term life insurance coverage for less. Call now and save up to 60% on your term life policy compared to the same coverage through other carriers. That means you can get similar coverage for your money – and that’s always a good thing!
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