Apr 10
6
Tax-Free Income from Life Insurance
Many of today’s investment and financial professionals are using a new breed of life insurance to provide asset protection and strong account growth with tax-free income to beat inflation and reduce taxes for their clients. Investment advisor representatives, registered representatives of investment companies, financial advisors, Life insurance advisors or life insurance salespeople, all across America are using Equity Indexed Universal Life Insurance (EIUL) to beat the inflation and tax battle for their clients. Life insurance as long been held as the number one vehicle for providing tax-free income during retirement (see video). According to Ed Slott a (Nationally recognized CPA who teaches tax strategies to advisors across America), it is the best and strongest method in the tax code for providing tax-free income.
Universal Life insurance designed by the insurance companies to provide higher returns in the cash accounts than did the traditional whole life products that had been around for years. Universal life insurance incorporates much of the “buy term and invest the rest” approach, but universal life provides tax-free income in the form of loans that do not have to be are using a new breed of life insurance to provide strong account growth and tax-free income repaid.
Traditionally universal life was offered in two categories. Either variable universal life insurance where your separate account is invested in the stock market similar to mutual funds providing the potential for growth as well as the potential for loss. Alternatively, fixed universal life insurance, where the cash value grows at a fixed rate generally higher than a Certificate of Deposit or CD, but without market risk. Both of these types of universal life insurance can provide tax-free income for retirement.
The benefit to equity indexed universal life insurance is that it provides the best of both of these types of universal life insurance. The growth is tied to an index like the S&P 500 up to a cap of between 12% to 16% and with the guarantee of principle. Meaning you cannot lose any of the money in your account or any of the gains that you have received from market increase. On top of that the proceeds can come out tax free in the form of loans to yourself that don’t have to be repaid. And being life insurance you do leave a tax-free inheritance to your heirs from the policy. Please feel free to Contact Us if you have any questions or comments on this or any other topics on this site.
We are located in Orange, CA and service all of Orange County CA and our surrounding areas in Southern California.
Your Life Advisors
Dean Barwick / Manager (714) 380-4586