A Smarter Way to Invest

Jack Nachtrab
Life Insurance Consultant

There are many changes to the tax landscape of the US on the horizon during the next few years of the current administration.

One of the largest potential changes will be a 5% increase on the marginal capital gains tax rate for high income earners. Those with higher income who are still looking to take advantage of market returns while not wanting to pay higher taxes will be good candidates for an indexed universal life policy. Contributions into the policy are post-tax dollars but grow in tax-deferred accounts. At the time of distribution, they can be withdrawn tax-free by way of policy loans, helping clients avoid paying additional taxes on the gains.

Because the account growth is based on the returns of an index, the client can still enjoy market returns and upside potential without having to worry about downside risk, while also minimizing their tax burden.

If you have clients who are higher income earners and might be subject to this tax increase, give us a call and let us show you how to structure an Indexed life insurance policy that works for them.

Recent Posts

The Importance of Proper Retirement Planning

Annuity Sales Consultant Retirement isn’t a one-time event; it’s an evolving journey that requires a clear vision and a flexible strategy. During a recent NAFA webinar, Tamiko Toland, founder of IncomePath, emphasized that the foundation of successful retirement...

Dividend vs. Index- Long Term Performance Trends

Jack Nachtrab Life Insurance Consultant In the permanent insurance world, the two main types of policies that accumulate a cash value are Whole Life and Indexed Universal Life. Both policies come with guaranteed death benefits and have similar features, riders, and...

June is Annuity Awareness Month

Tim Beauregard VP-South Every June, financial professionals, insurance companies, and advocacy groups across the United States observe Annuity Awareness Month. The initiative was established to educate consumers about annuities and their role in retirement planning....

Life Insurance Market Insights & Consumer Trends

Jody Horetski Life Insurance Consultant As we progress through 2025, it's clear the life insurance landscape continues to shift. Staying informed about coverage gaps, consumer behavior, and growth opportunities is essential to serving today’s clients effectively....