Any Insight on Fidelity and Life Guarantees IUL?

Fidelity and Guarantee IUL's are based on a point to point average of the S+P 500 not 25 years average. The 25 years average its only for illustration purposes and not for accreditation. ( I spent and hour on the phone with them) A lot of agents mislead clients to believe thats the case. Be careful they have a 0% GUARANTEE meaning, if the markets do nothing you only grow what its in the account minus the cost of insurance. There are other IUL's that are much better than Fidelity and Guarantee, ING, North America are a few of my favorites.
 
Max out your ROTH IRA before you buy life insurance for the cash accumulation-- It has the same tax treatment with no COI. Once you are doing then-- then consider life insurance from an accumulation stand point.
 
Max out your ROTH IRA before you buy life insurance for the cash accumulation-- It has the same tax treatment with no COI. Once you are doing then-- then consider life insurance from an accumulation stand point.
The GROWTH in a Roth is tax deferred but not tax-free until age 59 1/2 or 5 years, whichever is later. Withdrawal of earnings prior to these seasoning rules are subject to the 10% penalty.

Life insurance gains can be accessed through non-taxable loans without penalty. If the policy growth rate is 4% and your loan interest rate is 6%, you are accessing your cash values through a collateralized loan from the insurance company at a net spread of 2% which is substantially better than a 30+% tax rate, and it's better than simply taking money off of deposit earning 6% (Cost is the 6% interest given up).

If the person is paying for term life insurance, they are already paying COI. Paying the COI inside WL versus through a term policy allows for the other benefits of permanent life.

But I agree that a Roth is a favorable choice - 2nd best to permanent life insurance in my opinion.
 
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