Max Funded Iul Explained
what is a max funded iul
A max funded IUL (Indexed Universal Life) policy is a life insurance strategy designed to maximize cash value growth while minimizing death benefit coverage. This approach prioritizes tax-advantaged savings and investment potential.
How Max Funding Works
By paying the maximum allowable premium under IRS guidelines, policyholders can build cash value rapidly. The funds are allocated to indexed accounts, which offer growth based on market indices without direct market risk.
- Higher premium payments accelerate cash accumulation
- Tax-deferred growth and tax-free loans/withdrawals
- Flexibility in adjusting premiums and death benefits
Benefits of a Max Funded IUL
This strategy is popular for retirement planning, as it provides a source of tax-free income. It also offers protection against market downturns, thanks to floor guarantees on indexed accounts.
Consult a financial advisor to determine if a max funded IUL aligns with your long-term goals and risk tolerance.