Summerlin Benefits Consulting Q&AAnswer
Nov 22, 2024 - 02:35 PM
The tax-free growth of an FIUL policy offers significant benefits for retirees, especially as tax brackets are set to increase in 2026. By growing tax-free, the policy allows retirees to accumulate wealth without the tax burden that typically comes with traditional investment accounts. This is particularly important as income tax rates rise, potentially pushing retirees into higher brackets. Furthermore, FIUL provides tax-free withdrawals, reducing the need to dip into taxable retirement accounts like IRAs or 401(k)s, thus helping to preserve retirement savings while keeping tax liabilities low.
