Future Cash Withdrawals
Tax free income when you need it
If done within IRS Regulations, an Equity Indexed Universal Life policy can provide income that is tax-free.
The Future Cash Withdrawals rider allows you to withdraw funds that do not exceed the total premium payments made into the policy. Also, tax-free withdrawals can be made through internal policy loans offered by the insurance company, against any additional cash value within the policy. This income can exceed policy premiums and still be taken 100% tax-free.
If the policy is set up, funded and distributed properly (according to IRS regulations), an Equity Indexed UL policy will provide an investor with many years of tax-free income. This can significantly outperform traditional investments such as stocks, bonds, mutual funds, CDs or annuities that are placed in taxable and tax-deferred accounts such as an IRA, 401(k) or 403(b).