Ways to Leverage an Indexed Universal Life (IUL) Legacy Policy
Many employees believe that the retirement plans provided by their jobs are going to be enough when they officially retire. Others, haven’t even thought about retirement simply because thinking that far out into the future isn’t as much of a concern as trying to “just make it” in today’s economically volatile world. There various serious reasons that should be considered, and it would be smart to start taking a good look at what the options are, and how you can use them.
There are various legacy policies, like the Indexed Universal Life Insurance (IUL), that is amongst our biggest recommendations for a smart move for retirement. A lot of people are afraid to put their money somewhere that they cannot access. The beauty of the IUL as an option is that it can be accessed BEFORE retirement age. Because of the loaning feature of this legacy policy type, people have leveraged the advantages!
Here are some of the smart ways that the IUL can be used:
College Education: Considering a higher education? Or have children who will eventually attend college? A loan from the IUL can be a better alternative to pay for students than the college 529 plan. Unlike traditional student loans, loans from the IUL are tax-free, and there are no limitations on how you could use the funds. Students can use their IUL loan funds for a car, living expenses, groceries, etc. The nice thing, too, is that the IUL will continue to compound in interest as if the original amount is there!
Business Protection: Many business owners use their IUL loan funds for emergency business situations to replace expensive equipment, pay for major repairs, or survive a global pandemic! Business owners can take out a loan from their IUL and completely bypass the bank! No credit score is required, and the interest earned from the account can potentially start paying it back!
Business Investments: Business owners may see an opportunity to expand and grow their businesses and not have access to the lump sum they need to make the business investment. With an IUL legacy policy, business owners can loan from the account, use those funds to expand their business, and continue to compound in interest as if the original amount is in the account. Many legacy holders use their funds to open a brick and mortar, expand their facilities, open another shop, invest in marketing strategies, etc. The possibilities are endless!
Early Retirement: Those who want to retire early, increase that possibility by getting their IUL accounts set-up as early as possible. The earlier the account is set-up, the more time it has to compound interest, making it much more fruitful when the time comes to officially retire - EARLY! You don’t have to wait until you are 65 to retire! Set-up the pre-calculated, lifetime payouts that will cover you through the end of life. What is left over will then be paid out to to the named beneficiaries in addition to the death benefit - all tax-free!
Emergency Fund: No one can ever plan enough for a major medical or personal emergency. Imagine having a need for a lump sum and NOT having it! Put a comfortable amount every month into an IUL and watch it grow! If you need it in case of an emergency, you will have quick access to it. OR let it sit in this compounding account and watch it grow! Either way, if there was ever an emergency and you needed to loan from the account, it will still continue to earn interest at the amount reflected prior to you loaning the funds!
Investor Account: Investors use IULs to earn the interest while they invest in other projects, starting businesses, rental properties, etc. without having to go to the bank for traditional business loans. When funds are loaned for the investments, the account will still continue to earn interest as if the full amount is still there! In many situations, the interest will cover the re-payment amount giving more flexibility for investing in big projects!
Be sure to explore the Indexed Universal Life Insurance legacy policy as an option that saves you on taxes, pays you out when you are ready and earns you compounding interest that is all liquid and accessible! You don’t have to wait until you are 65 years old to get to your funds!
If you would like to learn more about the IUL and how it can level up your retirement savings and wealth generating potential, I’m here to help! Consultations are free and easy to book. Give me a call directly at (310) 256-7377. Send me an email at kchildress@cigbh.com. Visit my website at www.kwesichildress.com!
I’m Kwesi Childress, CEO & Founder of Kwesi Childress Financial Consulting!
I write about strategies to enhance your retirement savings and options for financial growth potential. I’m passionate about helping families of all ages, backgrounds and walks of life, plan for retirement and create generational wealth with power and confidence.