Frequently Asked Questions

Have Any Questions?

There is no maximum amount, but you need to earn at least $50K in “household income” to apply.

Most (nearly all) retirement plans such as 457B’s, 401K’s, IRA’s, 403B’s…even Social Security, are “taxable” which means you are taxed at the prevailing (current) tax rate, as you receive the money. Just like as you work now and your wages are taxed, so are retirement accounts. Tax-free Roth IRA’s and Tax-free Roth IUL’s are free from taxes, meaning the money receive is net, after tax and is not reportable as income. This can save the average taxpayer as much as 20% to 25% each year on taxes.

Yes, you can have both and the limits from your Roth IRA do not affect how much you can put into your Roth IUL, and the reverse is true as well. 

Accounts that are “indexed” are not invested in the stock market, but instead only copy the gains of the stock market, but NOT the losses. You are protected against market downturns of any kind.

William Roth, the Senator from Delaware (1971 – 2001) who was the namesake of the Roth IRA, is the inspiration behind the Tax Free Roth IUL. Our agency, Life Legends adopted the name “Roth IUL” as a description of the tax-free aspect of the Roth IUL. If you click on this link (link to Roth IRA vs Roth IUL) for a full comparison. But, both allow you to remove money in retirement Tax-Free.

IUL is the abbreviation for Indexed Universal Life. When something is Indexed, it means that it follows a certain kind of strategy (S&P 500, or Bloomberg… or some other earning strategy) and it mirrors the activity of how it performs in the market. Universal Life is a permanent cash value life insurance plan that includes “living benefits” as well. It is through this component of the Roth IUL, that allows it be tax-free income.

No. We design all of our supplemental retirement plans to maintain the minimum amount of face value (life insurance) to meet the government requirements to allow this to be tax-free. At the same time we use the “maximum accumulation” strategy to be sure you are growing at the maximum amount available. Remember: All Roth IUL’s insure that despite the amount of time you have been contributing, even if your life is cut short, your beneficiaries will receive a minimum survivor benefit of $100k, even if you have only contributed for a month or two. So it “insures” your beneficiaries will never be left without money. We can review details of your own specific numbers after we have done a discovery call with you.

You can set up an account based on an individual and make the trust the beneficiary.

No, FDIC is only used for the banking industry. This is not a bank product.

A personalized one-on-one appointment is the next step for people who are serious about creating a lucrative tax-free retirement. However, if you have questions you would like to ask before booking a discover call, then feel free to send us an email at: info@RothIUL.com.

There are no minimum age limits, but to maximize your earning potential, you should open one before the age of 59 1/2.

We can design your account to accommodate any desired annual amount.

Everyone can apply, but not everyone will be accepted. Since the foundation of the earning mechanism in the Roth IUL hinges on the potential death or illness of the holder of the account, they need to pass through the underwriting process. Illness or previous illnesses can be a factor in getting approved. There no risk or cost to try and get approved.

Since we design our plans with minimum face value / maximum accumulation there is a cost of insurance with is relatively small. We do not take a percentage of your earnings as a “fee” like most financial advisor do. We will prepare an illustration for you that projects earnings “after” all costs of insurance. When you compare how well these accounts have done in the past, the tax-free earnings component, and the lifetime tax-free income, these accounts are the very reason why they have become the fastest growing segment in this space.

In a Roth IUL, the contributions you make are deposited into and accumulate in your “accumulated balance”. That accumulated balance, at the time of retirement, is where your tax-free income originates. It is design to last until from the time you retire, until the age of 120. Obviously most people will not live that long, but whatever money that remains at the time of your death will always revert to your beneficiaries.

There is no minimum age to remove money from your account. You can access your accumulate balance at any time through low interest tax-free loans. Your lifetime tax-free income will “start” when you have finished contributing to your account, or anytime thereafter. Also, you do not have to remove your money at any particular age. You can wait beyond the age of 70 ½ if you want to let it continue to grow in interest.