Indexed Universal Life has released a guide to IUL policies for business owners, revealing the advantages of using this type of insurance policy as a tax-deferred accumulation vehicle and as a source of easily accessible funds to handle their day-to-day operations.
Silver Springs, United States - August 1, 2023 —
In the newly published guide, the IUL expert notes that while indexed universal life insurance (IUL) policies are more commonly used by individuals and families to offset the impact of increasing tax rates and market fluctuations on their retirement savings, this type of insurance can also be suited to the needs of business owners to adequately address unexpected financial hurdles.
More information is available at What Is IUL
Indexed Universal Life says in its latest guide that one of the main advantages of an IUL policy for business owners is its cash value growth potential. The policy provides businesses with an extra layer of stability since its cash value component grows on a tax-deferred basis, meaning they can accumulate a significant amount of funds until they decide to withdraw them.
The expert also highlights the risk-free nature of an IUL policy: "Due to IUL policy cash values having a “floor,” there is no downside risk to your principal in these plans - even if the underlying index that is being tracked suffers a substantial loss or experiences a high rate of volatility." As such, IUL policyholders can rest assured that their principal is generally protected as the interest rate linked to the account will never be less than the floor.
Business owners who choose this type of permanent life insurance can also borrow funds against the cash value accumulated in the policy to fund equipment purchases at more favorable rates, which would allow them to meet their changing business needs while optimizing efficiency and productivity.
An IUL policy can also serve as an instrument for financing the sale of a business in the event of the owner's death when a succession plan that ensures its continuation has not been prepared. "With a buy-sell agreement, remaining partners or key individuals can use the funds from the IUL policy to purchase the insured’s portion of the company - essentially keeping the business running in the interim," the expert explains.
More information about IUL can be accessed at IUL vs Whole Life
Small business owners who are interested in buying an IUL policy are recommended to communicate their needs with a licensed professional with expertise in this type of insurance. Interested parties can use Indexed Universal Life's website search tool to find IUL experts that are available for consultation in their local area.
They can also take advantage of Indexed Universal Life's calculator for a quick estimation of their monthly premiums and cash value accumulation.
Additional details can be found at IUL Calculator
Contact Info:
Name: IndexedUniversal.Life Administrator
Email: Send Email
Organization: Indexed Universal Life
Address: P.O. Box 3540 Silver Springs, Silver Springs, NV 89429, United States
Phone: +1-800-743-9221
Website: https://indexeduniversal.life/
Source: PressCable
Release ID: 89103865
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