Welcome to TAXEDNEVER.com

TAXEDNEVER.com is dedicated to exploring the use of life insurance as an investment. Yes… you read that correctly! Despite what you may believe about life insurance, certain life insurance products that are commonly available today are the best investment choice for many who are looking to save for a comfortable and TAX FREE retirement.

This website will NOT discuss the use of life insurance (in general) as an investment… Rather, we will explore the use of a specific life insurance contract referred to as either equity index life insurance (EIUL) or index universal life (IUL). Hereinafter, both will be referenced as EIUL. Further, we will compare using EIUL against after-tax accounts, including the popular Roth IRA, as well as against the more traditional retirement planning tools such as IRAs, 401ks, Defined Benefit Plans and other “taxed later” retirement planning options (that are typically funded with “at-risk” Wall Street investments.)

Equity index life insurance or EIUL is a unique life insurance product that provides the following main benefits:

  1. 1. Market-like returns (without the risk of losing your cash accumulation values to market losses.)
  2. 2. Significant income tax advantages (during both the accumulation and the income phases – but potentially also when funding under a Section 79 Plan.)

When these two advantages are combined in a correctly designed EIUL contract… you have the MOST powerful wealth creation tool currently available today.

But don’t just take our word for it!  Read through all of the research, math and tax law presented within these web pages and come to your own conclusions.  If you approach this information with an open mind (by setting your biases and prejudices aside) you will no doubt understand the reasons why EIUL is considered by many knowledgeable professionals in the financial services industry to be the most significant and game-changing financial product introduced in the last 100+ years.

Now please do NOT think the financial tool that is EIUL, in novice hands, will yield the same results as when compared to when it is used (and designed) by a master.  Could just anyone with a brush and some paints create the Mona Lisa?  Could anyone with a chisel and a block of marble create the Statue of David?  The obvious answers are NO.  It takes an experienced hand to deliver the best results.

So please understand that just because you are working with a successful financial advisor or insurance agent – do NOT assume that he/she understands the information contained within these web pages.  Do your own research.  Understand how the math and tax laws converge to provide the powerful wealth creation tool that is EIUL.  Having your own understanding and knowledge of the facts is the only way to ensure that the life insurance contract that you are investing in, or considering investing your hard-earned dollars into, will accomplish that which it was intended to do.

We are NOT suggesting that we are the only ones to possess the secrets to successfully designing and using EIUL as an investment… we are merely recommending that you yourself understand what you are doing with your money before you write that check!

If, after exploring the information presented in this website, you still have questions about your existing life insurance or a potential purchase of life insurance, please feel free to contact us for your FREE Life Insurance Design Analysis & Bid Package.

Section 79 Plans

Taxed Now, Taxed Later, Taxed NeverWe will also explore the Section 79 Plan.  A Section 79 Plan is a group term life insurance employee benefit plan.  Under IRC § 79, a business owner can offer a life insurance benefit to his/her employees and at the same time he/she may be allowed to also fund a permanent cash value life insurance contract (or EIUL) on a tax favorable basis for him/herself.  For the right business owner a Section 79 Plan can provide a tax-favored funding method for an EIUL contract that may be used to provide a TAX FREE retirement income.

Over the last few years there have been a lot of sites popping up about Section 79 plans.  Unfortunately many of these sites aim to do nothing more than scare potential participants (or existing ones) into thinking these plans have been targeted by the IRS.  Yet other sites make claims that a Section 79 plan is somehow economically disadvantaged and that the significant income tax benefits are irrelevant.  There is absolutely no precedent for these types of comments regarding IRS targeting, and never do these sites back up their statements with numbers or facts.

The reason these sites exist is that their sponsors hope that people will call them to engage them on a consultative level – so they can rack up fees while they “fix” a Section 79 Plan that doesn’t need fixing and/or they will attempt to sell you on buying a different life insurance product through them.  We will not list these sites, or name names, but they are easy to find when doing general searches for “79 plans” or “section 79 plans” online.

We highly encourage you to do your own due diligence.  Section 79 Plans are not a one-size-fits-all solution, but in the right circumstances (and properly designed) funding an EIUL through a Section 79 Plan is an absolutely viable retirement planning technique.
If you are presently considering a Section 79 Plan and want to be sure your Agent has designed the life insurance contract properly, please feel free to contact us for your FREE Life Insurance Design Analysis & Bid Package.

Death Benefit Disclosure

Taxed Now, Taxed Later, Taxed NeverWhen using life insurance as an investment, the contract MUST be designed to deliver at least the legally required minimum death benefit to still be considered a life insurance contract.  Too much death benefit and you are wasting money… too little death benefit and you no longer will have tax-free access to your cash values.  Failure to properly design your EIUL contract can be disastrous.  To attempt to achieve cash value accumulation AND death benefit protection in the same life insurance contract is a recipe for disaster or mediocre results at best.  If you are also seeking death benefits while saving for retirement, you should consider purchasing a term insurance product for this additional need.

However, when using life insurance to provide a permanent death benefit, EIUL is often the superior choice.  The same advantages that make EIUL a great investment tool can also be used to improve the economics of your existing life insurance policies that were specifically purchased to deliver death benefits.  We have successfully doubled or tripled the current death benefits for numerous clients (often with no further premiums needed) by doing a tax-free transfer of the existing cash values (under IRC § 1035) into a new EIUL policy.  If you have an older life insurance contract (purchased prior to January 2009) or a whole life policy, you may want to consider a “1035 exchange” into an appropriately structured EIUL.

If you are currently considering a 1035 exchange or would like to find out more about how a 1035 exchange into an EIUL may benefit you, please feel free to contact us for your FREE Life Insurance Design Analysis & Bid Package.