In the last decade, we had two major market crashes.
Understandably, many working professionals worry about the long term
safety of their money. They may have retirement saving plans
such as 401(k) plans (/retirement/401ks-vs-iras) at their disposal. But
with its contribution limits, costly tax implications, and investment
options’ exposure to market risk, the 401(k) can be unseemly for
conservative-minded savers.
One trend we have seen is presentation of “IUL,” or indexed universal
life insurance, as an alternative to the 401(k). To be clear, IUL isn’t an
investment strategy, it is a type of permanent life insurance. So be
wary of discussions in which IUL is treated as an investment vehicle,
especially relative to a 401(k) plan.
With that said, IUL may be attractive to retirement savers, including
younger professionals, on account of its more tax-effcient
advantages over the 401(k), among other benefts. Some advantages
include protection against market downfalls, more fexibility with
contributions and money access, and better tax treatment for future
income. Keep in mind, though – just like with any financial product,
suitability will always depend on individual client needs,
circumstances, and objectives.
At GLM Insurance Service, our experience in health, life, disability, guaranteed income and supplemental insurance coverages allows us to provide the very best coverage at the lowest price possible. Fill out the form below and one of our employee benefit experts will be in touch with you shortly to schedule a free consultation.
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