We do this by funding a life insurance contract and allow compounding interest to grow funds over time and then fund a tax-free retirement income.

We are taking advantage of section 7702 of the IRS code

• In the event of death, death benefit is 100% tax-free

  (This provides for loss of income protections)
• Solid death benefit with growing cash value

  (How strong depends on your choices)
• 100% creditor-proof

  (When paid in monthly installments to beneficiaries, creditors cannot make claims on this money)

From the issue date to the maturity date, the policy stays in force and the cash value keeps accumulating — growing faster in the later years as compounding takes hold.

How the moving parts of a universal life policy fit together:

• Premiums paid

  Your contributions flow into the policy
• Policy expenses

  A portion of each premium covers policy charges
• Cash Value Account

  The remainder accumulates in your cash value account
• Current rate from the company

  Interest is credited to the cash value account
• Cost of insurance

  Deducted monthly from the cash value account

• Never lose money

  Current interest rate is credited each year
• Average annual return over last 20 years is 8.37%

  0% floor – no loss of gains · Gains are capped with participation rates
• Annual lock and reset

  Annual gains are captured and never decrease

Your policy’s potential for growth is based on a market index like the S&P 500 or MSCI.

The point-to-point strategy gives you the potential for growth based on a chosen index and a set period of time. At the end of the period, if the index is positive, your policy is credited a portion of the growth based on current caps and participation rates. Growth is locked in annually and cannot be lost due to market declines.

20 year average return on investment, and value at the end of the period:

• Small, steady and consistent contributions

  $3 per day = $90 per month accumulates and compounds over time.
• Lump Sum Distribution, spread over first few years of policy

  $2,000 – $10,000 annual contributions for 3 – 7 years
• In both methods, the IUL account value grows due to compound interest

• An IUL has built-in safeguards and guarantees to ensure the income continues for a lifetime
• The beneficiary will ALWAYS get more money out of the IUL than they ever put in

• Taxes are most likely going to go up in the future (due to the national debt)
• Supplement retirement income with tax-free participating policy loans
• Give yourself a loan from the death benefit into your wallet
• The IUL is essentially converted to income with participating loans, which means NO TAXES ARE DUE WHEN INCOME is received