Why an IUL Defeats a Whole Life Policy, Anyday!
Hey there!
If you're reading this, you're probably starting to think about your financial future. Maybe you're just getting started in your career, or perhaps you've already got a bit saved up and you're wondering how to make the most of it. Either way, you’ve come to the right place. Let’s talk about two types of life insurance policies: Indexed Universal Life (IUL) insurance and Mutual Whole Life insurance. And trust me, IUL is where it's at if you want to become your own bank and grow your wealth in a smart way.
What Are IUL and Mutual Whole Life Insurance?
Indexed Universal Life (IUL) Insurance: IUL is like having a life insurance policy with a built-in investment account. The cool part? The cash value of your IUL grows based on how a stock market index (like the S&P 500) performs. But don’t worry, you’re not actually investing in the stock market directly, so your money has a safety net against market crashes.
Mutual Whole Life Insurance: Whole Life insurance, on the other hand, is more old school. It gives you a guaranteed death benefit and a cash value that grows at a fixed rate. You might also get dividends from the insurance company, which you can use to boost your cash value or reduce your premiums. But, these dividends aren't guaranteed and the growth is pretty steady and slow.
Why IUL is the Smart Choice for Young Adults
Potential for Higher Cash Value Growth:
Grow with the Market: With an IUL, your cash value grows based on a stock market index. If the market is doing well, your cash value can grow a lot more compared to a whole life policy. And if the market tanks, your money is protected because IUL policies usually have a guaranteed minimum interest rate.
No Losing Streaks: You get to enjoy market gains without suffering through the losses. It's like having your cake and eating it too!
Flexible Payments and Death Benefits:
Pay What You Can, When You Can: Life is unpredictable, especially when you're young. IUL lets you adjust your premium payments. Had an awesome month at work? Pay more. Tight on cash? Pay less. You have the flexibility to roll with whatever life throws at you.
Adjustable Coverage: You can increase or decrease your death benefit as your life changes. Bought a house? Maybe you need more coverage. Paid off your student loans? You can dial it back.
Tax Perks:
Tax-Deferred Growth: The money you make from the cash value in an IUL grows tax-deferred. That means you don’t pay taxes on it as it grows. Score!
Tax-Free Loans and Withdrawals: Need cash for a big purchase or an emergency? You can borrow against your IUL’s cash value, and it’s usually tax-free. It’s like having your own personal bank.
Participation in Market Upside:
Safety Net Included: You get to benefit from the good times in the stock market without the stress of the bad times. Your cash value isn’t directly in the market, so you avoid the rollercoaster of market ups and downs.
Cost-Effective:
Lower Initial Costs: IUL policies often start with lower premiums than whole life policies. This is great when you’re young and maybe don’t have a ton of extra cash lying around.
Why Becoming Your Own Bank Rocks
Imagine this: You need some cash for a new car, a down payment on a house, or even starting your own business. Instead of going to a bank and applying for a loan (and dealing with interest rates and debt), you can borrow from your IUL policy. You’re essentially lending money to yourself and paying yourself back. This keeps you in control and can save you a ton on interest and fees. Plus, you don’t have to jump through all the hoops that banks make you go through.
Final Thoughts
Choosing the right life insurance policy is a big deal. Indexed Universal Life (IUL) insurance gives you the flexibility, growth potential, and security that can set you up for a bright financial future. It’s a great way to build wealth while protecting yourself from life’s uncertainties. And the best part? You can become your own bank, giving you more control over your finances.
So, whether you’re just starting out or looking to level up your financial game, consider an IUL policy. It’s a savvy move that can pay off big time down the road. And hey, if you need more info or have questions, click the link below and let’s review what we could possibly do for you and how your future will look if you take action. I'm here to help! - Preston
CLICK HERE TO SEE WHY EVERY CONTRACTOR AND YOUNG ADULT SHOULD BE THINKING ABOUT THEIR FUTURE AND TAKING CONTROL OF THEIR FINANCES BEFORE IT'S TOO LATE
Generational Wealth Checklist:
Use this checklist to determine whether you are taking the necessary steps to become your own bank, have something in place that's creating you generational wealth, and giving you a solid retirement strategy if you don't have one.
Picture your dream life at the end of your work career, do you have things in place that will allow you to retire comfortably?
Do you have something in place that is protected from market downturns, but also allows you to participate in all the market gains?
Do you have the funds and investments in place that will allow you to buy a second home one day or an investment property for cash flow?
Do you have an investment tool in place that allows you to keep accumulating cash even while borrowing cash?
Do you have a rainy day fund that you can pull from if life takes an unexpected turn for the worse?
Do you have an income strategy in place that allows you to defeat uncle Sam and not pay taxes on your money?
Do you have a way to become your own bank and take loans from yourself, avoid paying interest longterm, and avoid ever using the big banks ever again?
Do you have a permanent life insurance policy like an old school whole life that's making you pay way too much out of pocket than you should be, for measily cash growth accumulation?
And lastly, are you using the infinite banking strategy to truly separate yourself financially from your peers and setting your future up for success?
If you weren't able to check all of these boxes, it might be in your best interest to click this link to watch the video to really show you what this can do for you. At the end of the video, if you feel like this might be what you're looking for, follow the prompts to schedule a free strategic assessment with me, Preston. We will look at your current situation, your goals for your future, and your wealth and retirement dreams.
