Discover the Power of WealthX IUL

Life Insurance Beyond Protection.

Life insurance is an important asset class for protecting your family’s financial future. It provides a tax-free benefit to your beneficiaries in the event of your untimely death. But did you know that life insurance can also be used to build wealth and protect your money? In this blog, we will explore the benefits of WealthX by The Policy Shop and how it can help you grow and protect your wealth.

1. What is WealthX?

WealthX is a life insurance contract that provides both a death benefit and a cash value component. The cash value is linked to stock market indexes, such as the S&P 500, and grows tax-deferred. 

Unlike traditional life insurance, WealthX policies offer the opportunity for higher returns if the underlying index performs well.

2. Why is life insurance tax-free?

Life insurance benefits are typically paid out tax-free to your beneficiaries. This is because the government recognizes that the money is intended to provide financial support to your loved ones during a difficult time. The tax-free status of life insurance benefits makes them a valuable tool for growing your wealth, having access to your gains tax-free, estate planning and wealth transfer.

3. Hold and Grow your money

One of the key benefits of WealthX is that it allows you to hold and grow your money in a tax-deferred environment. This means that you don’t have to pay taxes on the growth of your cash value, and it can continue to compound tax-advantaged tied to the stock market.

4. Keep your money safe

WealthX policies also provide a level of protection against market volatility and creditors. Unlike traditional market driven products, WealthX policies offer a minimum guaranteed interest rate, which means that your cash value will never decrease, even if the market performs poorly. We refer to this as downside protection, meaning you will not lose your principal or accumulated interest in the event of a negative market index return. This provides peace of mind knowing that your money is safe and protected.

5. Control your own funds

Another advantage of WealthX is that it allows you to act as your own bank. You have access to your policies cash value when you want it and for whatever reason you want it. By taking a policy loan, your funds are available without being taxed. By using policy loans, you have the ability to arbitrage the rate of your loan vs the performance of your indexes, and that’s what we call being your own bank.

6. Living benefit, death benefit and safety

WealthX provides both a death benefit and a living benefit. The death benefit provides financial support to your beneficiaries in the event of your untimely death, while the living benefit allows you to access your cash value (and even the death benefit) if you become seriously ill or disabled. This provides a level of safety and security knowing that you and your loved ones are protected against unexpected events.

7. Create generational wealth

WealthX can be used to create generational wealth. Because the cash value grows tax-deferred, it can be passed down to future generations without incurring taxes on the growth. This can be a powerful tool for creating a lasting legacy and providing financial security for your family for generations to come.

In conclusion, WealthX is a powerful tool for building wealth, protecting your money, and creating generational wealth. It provides both a death benefit and a living benefit and allows you to hold and grow your money in a tax-deferred environment. If you’re looking for a way to protect your family’s financial future while also building wealth, our WealthX insurance policy may be the right choice for you. 

Welcome to The Policy Shop. Insurance that doesn’t feel like Insurance. 

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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.