The Power of WealthX IUL

Our WealthX IUL stands out as an excellent financial vehicle, particularly when compared to IRAs and 401(k)s. Let’s explore why a properly structured, WealthX IUL policy can offer more advantages for your retirement.

The Tax Conundrum

In the fiscal year 2022, the federal government collected $4.9 trillion but spent $6.27 trillion, accumulating a national debt nearing $31 trillion. With an impending likelihood of increasing taxes, concerns arise about the impact on your retirement savings. Contrary to popular belief, most Americans find themselves in a tax bracket as high or higher than during their earning years in retirement, risking outliving their money.

Safeguarding Against Unnecessary Taxes

To protect against the impact of escalating taxes, consider the following scenarios:

Walking Toward Retirement: Taxed-as-earned investments, where after-tax dollars contribute, face annual taxation on interest or dividends earned. This continues during distribution, and upon death, income and estate taxes come into play. This method is akin to crawling toward the retirement finish line, resulting in slow growth.

Jogging Toward Retirement: Traditional IRAs and 401(k)s allow the saving of pre-tax dollars, providing a tax break on the front end. However, accessing the money later incurs taxes, representing a trade-off between a front-end tax break and back-end tax payments.

Sprinting Toward Retirement: Why settle for crawling, walking, or jogging when you can sprint? Contributing after-tax dollars to a properly structured, maximum funded WealthX IUL policy allows tax-free access and income, transferring wealth tax-free to heirs upon passing. This unique approach propels you forward in the retirement race.

Strategic Rollouts for a Financial Boost

If your money is already in traditional accounts, such as IRAs, 401(k)s, and savings accounts, don’t despair. A strategic rollout involves repositioning a substantial portion of your funds to a WealthX IUL policy. This strategic move, backed by our extensive experience, allows you to address taxes at today’s rates and enjoy the tax advantages of a WealthX IUL policy Fund during retirement—ensuring tax-free growth, tax-free income, and income-tax-free wealth transfer.

Act Now to Save Yourself from Unnecessary Taxes

While traditional accounts remain valuable, the urgency lies in strategic rollouts to a WealthX IUL policy. To delve deeper into the tax topic, join our upcoming webinars. Your hard-earned money should serve your future, not Uncle Sam’s interests.

Curious to Learn More? Contact The Policy Shop Today

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Related Content | Learn More about IULs:

What is Indexed Universal Life Insurance?

Here is the best explanation: Indexed Universal Life Insurance (IUL) is a type of permanent life insurance that lasts your whole life and has two main parts: a death benefit that pays out when you pass away, and a cash value component that can grow over time. What sets IUL apart from other types of life insurance is how the cash value grows. Instead of just earning a set interest rate, the cash value in an IUL policy can also increase based on the performance of an underlying stock market index, like the S&P 500.

How The IUL Works: When the index goes up, your cash value goes up too, but only up to a certain limit, called a “cap.” For example, if your policy has a cap of 7% and the index goes up by 8%, your cash value would only increase by 7%. However, if the index goes down, your cash value won’t lose any value – it stays the same, protecting your money from market losses.

The cash value in your IUL policy grows tax-deferred, meaning you don’t pay taxes on it until you withdraw the money. This allows your cash value to grow faster over time. Plus, because IUL is permanent life insurance, your loved ones are protected financially with a tax-free death benefit when you pass away, as long as you keep paying the premiums.

What are IUL insurance riders?

IUL policies also offer various optional add-ons called riders that can enhance your coverage. here is a list of the best:

• Adjustable Term Insurance Rider: Adds a term life insurance component to your policy for extra coverage.
• Additional Insured Rider: Extends coverage to your spouse or children.
• Long-Term Care Rider: Provides income to cover long-term care expenses like nursing home or home care.
• Chronic Illness Rider: Pays out a portion of the death benefit if you’re diagnosed with a chronic illness.
• Accelerated Benefit Rider: Provides a portion of the death benefit early if you’re diagnosed with a terminal illness.

Our team of IUL experts can help you decide if an indexed universal life insurance policy is right for your financial needs.