There's a misconception that the fees and commissions of cash value life insurance make it difficult to accumulate wealth. This piece breaks down an indexed universal life (IUL) policy by premium expense, cost of insurance (COI), coverage charge and admin charge.
This piece is part of our foundation on how to leverage the benefits of cash value life insurance for tax-efficient income planning. If IRC Section 7702 rings a bell, it's because it is the tax code that allows life insurance retirement plans (LIRP) to have tax-free benefits.