How do numbers play out for an IUL in terms of cash accumulation.
IULs are simple. They aren't overcomplicated or bad. People just don't understand what situation to use them in, but in all honesty that is simple as well.
Did person already max out their 401k? If yes continue Did person already max out or make too much money to contribute to their Roth IRA if yes continue Can person invest X amount of money probably around $500-$1500 depending on policy if yes continue. Does person already have a life insurance policy, but wants additional protection or doesn't have a life insurance policy. If yes to either one continue.
All of this is very simple. My brain was overcomplicating it, but in reality the target prey is a very niche audience, but simple to hunt and take down. My only question is…
The number potential. I need to be able to make a decent guess into how much money someone can make from this policy or use it for tax free loans. This is where it gets very complex and I can't get a really good answer from this and the numbers aren't really make sense here as well.
Example:
Mary Sue takes an IUL for with a 300k death benefit. She decides to max fund the policy at $1500 a month and does this for 15 years. Her money is contributed to an S & P.
S&P 500® One-Year 100% Participation – those who believe the index will perform at an average or slightly above average rate might be more comfortable with this strategy.
She used the S&P 500 One Year 100% Part for 15 years straight while paying $1500 monthly for her policy. How much money does she accumulate in value over the course of the 15 years.
The S&P for simplicity magically stays at a rate of 7% for each of those 15 years.
(1500 x 12) x 15 = 216,000 of total money spent into the policy (max funded).
Using the example above what are the strategies she can partake in with this policy now? How much money did she accumulate in cash? What can she do with the death benefit?
submitted by /u/UsuSepulcher
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