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One is life insurance, one is an annuity.
Tax treatment on interest earned is FIFO on LI, LIFO on the annuity.
NQ annuities have a tax penalty on the interest earned when withdrawn prior to age 59 1/2.
Everything else is product specific.
Tax treatment on interest earned is FIFO on LI, LIFO on the annuity.
NQ annuities have a tax penalty on the interest earned when withdrawn prior to age 59 1/2.
Everything else is product specific.
- Thread starter
- #3
- 1,926
You are really comparing apples to oranges. It is easy to understand what the crediting rate/caps are applied to with an annuity, although caps are higher with IUL harder for me to understand what it is being applied to.
