Why Life Insurance Matters in Retirement Planning
When most people think of life insurance, they envision a policy that provides financial security for their loved ones after they pass away. However, life insurance, particularly Indexed Universal Life Insurance (IUL), can be a powerful financial tool that enhances your retirement plan in multiple ways. Beyond providing a death benefit, an IUL can offer tax advantages, cash value growth, and flexible income strategies that support a stable and secure retirement.
What is Indexed Universal Life Insurance (IUL) and How Does It Work?
IUL is a type of permanent life insurance that offers:
- A death benefit to protect your family.
- Tax-advantaged growth through a cash value component.
- Market-linked returns without direct exposure to market losses.
- Flexibility in premiums and withdrawals, making it adaptable to changing financial needs.
Unlike traditional whole life insurance, the cash value of an IUL is tied to a stock market index, such as the S&P 500, offering the potential for …