THE NO-COMPROMISE RETIREMENT PLAN • 67
“The account is worth whatever it’s worth. That’s all I can give you for it.” But with IUL, because of the death benefit, you can access funds from a much higher amount than your account value. If you ultimately decide IUL may be a beneficial approach for you and retirement health costs are a concern, be sure to find an advisor who understands IUL and can direct you to policies with good living benefits. Legacy for Your Heirs I started this chapter stating the obvious: IUL overcomes the conflict between income for you and legacy for your heirs. That’s because your policy delivers a death benefit above and beyond the account value. If you have a $2 million IRA and you die, your heirs get $2 million, less taxes . That’s because, whether you’re living or dead, your IRA is just worth its account value, less taxes. But IUL is different. In an IUL policy, your $2 million cash value might deliver a $2.5 million death benefit. So there are additional funds for your heirs — and they’re delivered tax free. Consider this: If you died today with a $2 million IRA, it might deliver $2 million less taxes to your heirs. At a 25 percent tax rate, let’s call it around $1.5 million. But your IUL could deliver $2.5 million tax-free . Pretty easy choice, right? IUL — and life insurance, more generally — is the only option that truly overcomes the conflict between what you spend while living and your ability to leave something to your heirs after you’re gone. And that’s how IUL eliminates conflict No. 2.
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