Business owners use IUL for executive bonus plans, key person insurance, tax-advantaged savings beyond retirement plan limits, and buy-sell agreement funding. IUL provides both asset protection and death benefit coverage for business continuity.
IUL is especially powerful for business owners who need both life insurance and tax-advantaged savings.
Unlike SEP IRAs or solo 401(k)s, IUL has no contribution caps, provides tax-free access to funds, and includes a death benefit. For high-earning business owners, IUL is often the most efficient way to save beyond traditional retirement accounts.
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IUL offers three major tax benefits: tax-deferred cash value growth, tax-free policy loans and withdrawals (up to basis), and an income-tax-free death benefit for beneficiaries under IRC Section 7702. Read more
IUL can be a good financial tool for high-income earners seeking tax-advantaged growth and those who have maxed out traditional retirement accounts. It is not a pure investment but a hybrid insurance-savings vehicle. Read more
Yes, IUL is commonly used as a retirement income supplement. By funding the policy during working years, you can take tax-free policy loans in retirement to create an income stream that does not count toward Social Security taxation thresholds. Read more
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