IUL Strategy Library
Welcome to the IUL Strategy Library—a collection of real-world scenarios that show how smart people use Indexed Universal Life (IUL) to build wealth, protect their families, and gain financial control.These are not "theoretical" plays. These are practical, creative strategies in action. We designed this library to help you see how this flexible tool adapts to your goals, whether you’re building for retirement, creating a legacy, or protecting your business.
📁 Legacy Launch Plan
Strategy Type: Family / Kids
Who it’s for: Parents or grandparents who want to give their children a financial head start that can last for generations.
The Strategy: Start a small IUL policy for a child while they're young and healthy. Fund it aggressively in the early years, then let it quietly build compound growth for decades.
Why it works:
Low insurance costs due to age
Decades of tax-free compounding
The child can access the cash value for college, real estate, or starting a business
The policy can eventually fund their retirement as a "private pension"
Real-World Use: A parent funds $250/month into their daughter's IUL from age 5 to 18. No more payments after that. By the time she's 40, she has access to $100K+ in cash value—tax-free.
🏢 Entrepreneur's Escape Hatch
Strategy Type: Business Owner
Who it’s for: Small business owners who want to save for retirement outside of their business, with flexibility and protection.
The Strategy: Set up an overfunded IUL to create a private retirement plan that's not tied to company performance or market volatility.
Why it works:
Contributions are flexible
Cash value is protected from lawsuits/creditors in many states
Can be accessed during down business years
Can be used to fund a buy-sell agreement or key person insurance
Real-World Use: A 42-year-old business owner contributes $15K/year. At age 60, the policy generates $50K/year in tax-free retirement income.
⏰ Retirement Gap Bridge
Strategy Type: Catch-Up Plan / Pre-Retiree
Who it’s for: Someone 55–60 years old who wants to retire early but doesn’t want to trigger 401(k)/IRA penalties or Social Security yet.
The Strategy: Use an IUL as a "bridge account" to create tax-free income from age 62 to 70, allowing other retirement accounts to grow untouched.
Why it works:
No early withdrawal penalties
Tax-free income stream
Delays tapping into taxable assets
Helps reduce RMDs and preserve more wealth long term
Real-World Use: A client starts a policy at 55, funds it for 10 years with $20K/year. From 65 to 70, they withdraw $30K per year, tax-free, giving their IRA another 5 years to grow untouched.
📈 DIY Pension Plan
Strategy Type: Family / Retirement Income
Who it’s for: Professionals or families in their 30s or 40s who want guaranteed income later without the rules and taxes of a 401(k).
The Strategy: Design a max-funded IUL to grow cash safely over time. Plan for income withdrawals during retirement years.
Why it works:
You control when and how you take income
No penalties for early access
Tax-free growth and withdrawals
Hidden from FAFSA and income tests