Institutional Head-to-Head Analyzer
Buy Term & Invest Rest vs. Indexed Universal Life (IUL)
Evaluate how the contractual 0% floor and IRS Section 7702 tax-free policy loans insulate retirement capital compared to taxable brokerage portfolios.
$500/mo
During market corrections, the IUL applies its contractual 0% floor while taxable equities lose capital value.
Option 1: Florida IUL Strategy
$319,848
Cash Value Accumulated by Age 60
Tax-Free Income
$20,790/yr
✓ 0% Annual Floor: Zero market downside risk.
✓ IRS 7702: 100% Tax-free retirement distributions.
✓ Living Benefits included for critical/chronic illness.
Option 2: Buy Term & Invest Rest
$257,070
Estimated Brokerage Value at Age 60
Net After-Tax Income
$13,368/yr
⚠️ Term policy expires at age 60 with $0 residual value.
⚠️ Subject to 15%–20% capital gains taxes upon withdrawal.