@rj - In effect, it is tax free growth because, when structured properly, an IUL policy can provide 'income' in the form of forgivable loans. Your statement that "any amount over the cost basis is taxed" is incorrect unless you simply cashed in your policy. Structuring a policy for 'income' 15, 20 or 30 years down the road is fairly easy and this 'income' supplements retirement income very well while providing death benefit protection for your loved ones as you build up your account balance.
EIUL's do NOT offer tax free growth. It's tax DEFERRED growth. Any amount over the cost basis is taxed. Average time to get to that point is about 20 years. First 15-20 are a LOSS.
Don't forget the 5-6% in FEES paid on premiums, the actual cost of insurance goes UP every year (eventually eating away at the cash value).
If you don't believe me, read the policy itself. The TRUTH is in there, not what the agents told you.
@rj - In effect, it is tax free growth because, when structured properly, an IUL policy can provide 'income' in the form of forgivable loans. Your statement that "any amount over the cost basis is taxed" is incorrect unless you simply cashed in your policy. Structuring a policy for 'income' 15, 20 or 30 years down the road is fairly easy and this 'income' supplements retirement income very well while providing death benefit protection for your loved ones as you build up your account balance.
ProspectiveTruth 1 year ago
EIUL's do NOT offer tax free growth. It's tax DEFERRED growth. Any amount over the cost basis is taxed. Average time to get to that point is about 20 years. First 15-20 are a LOSS.
Don't forget the 5-6% in FEES paid on premiums, the actual cost of insurance goes UP every year (eventually eating away at the cash value).
If you don't believe me, read the policy itself. The TRUTH is in there, not what the agents told you.
rjhcomputers 1 year ago