BravoPolicy: Permanent Life Insurance for All
Ed Slott – a renowned tax expert – on tax benefits of IUL policies
Indexed Universal Life Insurance (IUL) Policy is a Great Tax-Free Retirement Savings Plan
- Cash value growth tied to the performance of S&P 500 Index, with average annual return of 10.1% in the past 30 years
- Tax-free cash value growth and withdrawals
Compare quotes of 30+ IUL products
Yes. Guaranteed Universal Life Insurance (GUL) provides the same guaranteed and permanent coverage for less than half the cost of Whole Life Insurance premiums.
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The Right Permanent Life Insurance
Policy Offers Great Benefits
Lifelong & Permanent Protection
The right policy, like guaranteed universal life insurance, provide lifelong, permanent, and guaranteed protection at affordable price.
Additional Income When You Are Sick
If you are terminally ill or chronically ill and require long term care, permanent policy provides additional income taken from death benefits.
Cash Value Account Growth - Income Tax Free
Indexed or variable universal life policy come with cash value account that grows like an investment account. Even better, you can withdraw cash from cash value account, income tax free.
Flexibilities
All universal life policies offer great flexibilities such as increasing or decreasing or even skipping premiums. Also easy to withdraw when you need the money.
The Power of Three
Universal Life Insurance Products
The three universal life insurance products: GUL, IUL, and VUL offer unique advantages for all of your permanent needs from protection to supplementing tax-free income.
Guaranteed universal
life insurance
(GUL)
If you are only interested in having guaranteed permanent death benefits for your loved ones when you pass away, guaranteed universal life insurance (GUL) is the best choice at affordable price.
Indexed universal
life insurance
(IUL)
If you are interested in maximizing your cash value account by investing in indexes and withdrawing tax-free cash to supplement your income, indexed universal life insurance (IUL) is a great product.
Variable universal
life insurance
(VUL)
Similar to IUL, variable universal life insurance product (VUL) is a great option if you want to grow the cash value account in your policy more aggressively by investing in different types of assets.
Permanent life insurance policies
for people of all walks of life
Moon – 37 years old, nail salon manicurist, living in Washington DC
Moon is replacing a whole life policy with an indexed universal life policy. She reduces the premium payment period to 23 years only (instead of paying premiums for the rest of life with the Whole Life policy). She has much better cash distribution to supplement retirement income. She pays $220 a month for 23 years and receives $13,600 cash distribution a year, tax free, for 30 years, from 61 to 90 years old, from the cash value account of the policy.
Moon, 37 years old, female, a nail salon manicurist, has an income of $40-50K a year and excellent health.
– She wants to invest in a permanent life insurance policy from which she can withdraw money to supplement her retirement income when she retires at 60. She has owned a whole life policy for 4 years.
– Her whole life policy is by MassMutual. It offers $200K guaranteed coverage and she is required to pay $220 a month in premiums for the rest of her life. Currently, there is $3,500 in the cash value account of the policy.
– After shopping with 30+ carriers and their 90+ permanent products, we advised her to switch to an Indexed Universal Life Insurance policy of Allianz Life (Life Pro+ Advantage product). She will still pays $220 a month in premiums. However, she only pays until she reaches 60 years old (23 years).
– She will be able to withdraw up to $13,600 a year, tax free, for 30 years, from 61 to 90 years old, based on the illustration of the policy.
-If she passes away at 91 years old, her beneficiary can still receive $37K in death benefit, income-tax free.
Emma, 40 years old, a product marketing manager living in San Francisco.
Indexed Universal Life Insurance Policy to provide tax-free cash distribution to supplement retirement income. Pay $500 a month for 20 years (40-60 years old). Receive up to $32,605 a year, tax free, for 25 years, from 66 to 90 years old.
Emma, 40 years old, a product marketing manager living in San Francisco, has an income of $165K a year and good health. She wants to invest in a permanent life insurance policy with the purpose to withdraw cash from it to supplement her retirement income when she reaches 65 years old.
She plans to pay $500 a month in premium until she reaches 60 years old (20 years in total) and wants to withdraw the maximum cash distribution from the policy when she is 66 to 90 years old (25 years). She also wants to have access to cash income if she becomes terminally or chronically ill or requires long term care.
After shopping with 30+ carriers and their 90+ permanent products, we find and recommend Emma to choose between two best products:
- Allianz Life with its Pro+ Advantage product – she can withdraw up to $32,605 a year, income-tax free, from 66 to 90 years old (25 years). If she passes away when she is 91 years old, her beneficiary can receive up to $75,500 in death benefit as well. These are based on the illustration of the policy.
- Penn Mutual with its Accumulation Builder Flex IUL product offers annual distribution up to $28,760, income-tax free, from 66 to 90 years old. If she passes away at 91, her beneficiary can receive up to $95,000 in death benefit.
Chris, 36 years old, an engineer, lives in Dallas, TX with his wife and 2 kids.
Guaranteed Universal Life Insurance Policy provides lifelong, permanent, and guaranteed death benefit at reasonable price (55%+ cheaper than whole life policy). Pay $281 a month for 25 years (36-60 years old) to have permanent guaranteed protection of $500K death benefit.
Chris, 36 years old, an engineer, in good health, and lives in Dallas, TX with his wife, Hanah, 31 years old, a teacher, and their two kids, David and Tess, aged 6 or 4. Chris makes $120K a year. He wants to have a permanent life insurance policy of $500K to provide protection for his family when he passes away. He wants to pay premiums for 25 years only, until he reaches 60 years old.
– If he passes away early, the policy’s payout needs to be able to pay off their mortgage ($300K) and their children’s college tuition ($100K each).
– If he passes after the mortgage has been paid off, the policy’s payout will be for Hanah’s retirement expenses and helping with their children’s first homes.
Like everyone else, he is concerned that a whole life policy is just so expensive that he can’t afford it, which is true:
- Penn Mutual whole life policy, the cheapest whole life policy that we could find, offering guaranteed death benefit of $500K, costs $7,470 a year in premiums or $622.5 a month. (pay premiums for 25 years only)
After shopping with 30+ carriers with their 90+ permanent life products, we were able to find a policy that meets Chris’ needs and is at a price that he can afford. Prudential’s PruLife Universal Protector policy offers guaranteed permanent lifelong death benefit of $500K and it costs $3,371 a year in premium, or $281 a month. (pay premiums for 25 years only)
The PruLife Universal Protector policy’s premiums are 55% cheaper than the cheapest whole life policy for similar coverage.
Bob, 73 years old, retired, and living in Florida.
Replacing an existing Whole Life policy with a Variable Universal Life policy . Stop paying premiums. Higher guaranteed permanent death benefit. Faster cash value growth.
Bob is 73 years old, retired, and living in Florida. He has had a whole life insurance policy for 40 years with a face value of $250,000. He pays $2,200 a year in premiums. If he wants to keep the policy, he has to continue paying premiums until he passes away or reaches 100 years old. At age 73, the cash value account in his policy is worth $172,000.
Now he is retired and on a fixed income, he realizes that he might not be able to keep up with premium payment. He wants to explore what options he has if he doesn’t want to pay premiums anymore. Ideally, he wants to replace this with another policy that provides similar guaranteed lifelong permanent coverage and doesn’t require him to pay premiums anymore.
After shopping with 30+ carriers and comparing their 90+ permanent products, we have a much better product for him. We recommended Lincoln VULOne product from Lincoln Financial, a variable universal life insurance product, which will provide him with $309,000 guaranteed death benefit up to 100 years old, regardless how the cash value account performs. And he doesn’t need to pay premiums anymore.
Since this is a variable universal life insurance product, he will also have access to the cash value account. Based on the illustration of the policy, the cash value account is $199K when he is at 80 years old; $249K at 85 years old; $325K at 90 years old; and $552K at 100 years old. He can have access to the cash value account. However, if he withdraws from or loans against the cash value account to supplement his income or for an emergency, the death benefit will be reduced accordingly.
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