We want to make sure that the actual cost of insurance goes down as you get older because the net amount of risk decreases over time.
When you’re funding an Indexed Universal Life (IUL) policy or any permanent life insurance policy, there are some costs involved. When you’re paying a premium into an IUL policy, many of my clients are maximum funding it within five years.
For example, if they want to put in $500,000, they can’t do that in one fell swoop without creating what is called a Modified Endowment Contract (MEC). An MEC means that if they wanted to access money for tax-free income, it wouldn’t be tax-free.
To avoid this, you need to structure the policy correctly and spread out the funding over several years. This ensures you maintain the tax-free benefits and optimize the policy for long-term growth and income.
To learn more about properly funding an IUL policy and avoiding common pitfalls, claim a free copy of my book, The LASER Fund. Click on the link below, contribute towards the shipping, and I’ll cover the rest. I’ll pay for the book.
Visit laserfund.com to claim your FREE copy of The LASER Fund book, just cover the shipping. #shorts
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