Tax-Advantaged Benefits of Indexed Universal Life Insurance

Indexed Universal Life insurance offers tax-advantaged growth, tax-deferred cash value accumulation, and potential tax-free access through policy loans when structured properly. These benefits make IUL a strategic tool for long-term wealth management.

Understanding Tax Advantages

IUL policies offer:

• Tax-deferred growth

• Tax-free death benefits

• Potential tax-free loans

This makes them particularly appealing for high-income earners and long-term planners.

Tax-Deferred Growth Explained

Cash value grows without annual taxation, allowing compounding to work more efficiently over time.

Accessing Cash Value Tax-Efficiently

Policy loans allow:

• Access to funds without triggering income tax

• Continued participation in index crediting

• Flexible repayment terms

{Loan mechanics, interest rates, and repayment rules vary by policy and carrier.}

IUL vs Other Tax-Advantaged Vehicles

Compared to:

• 401(k)s

• IRAs

• Brokerage accounts

IUL offers greater flexibility and fewer contribution restrictions, though it requires careful design.

Ohio Tax Considerations

• State tax treatment aligns with federal rules

• No Ohio income tax on death benefits

• Loan treatment depends on policy structure

Summit Shield ensures Ohio clients understand both advantages and responsibilities associated with IUL strategies.

Conclusion

The tax advantages of Indexed Universal Life insurance can significantly enhance long-term wealth strategies when used responsibly. For Ohio families seeking tax-efficient growth and flexibility, IUL provides a powerful financial shield—when designed with professional guidance.