For many people, an approach that incorporates whole life insurance has become part of their broader retirement strategy. Is that a good way to go? That’s what David McKnight addresses in this episode.
While Whole Life has some legitimate applications, especially for people who are risk-averse and are looking for guaranteed steady accumulation, there’s an option that does the job more effectively: Indexed Universal Life (IUL).
David touches upon why you may want to opt for IUL instead of Whole Life, including the fact that, with IUL, you can access your cash value in retirement without having to pay loan interest.
That gives you more flexibility and more efficiency when using IUL as a source of income.
David compares Whole Life and Indexed Universal Life.
If your goal is to shield your retirement portfolio from market downturns, then Whole Life is like taking the scenic route: You’ll get there. but it will cost you more time, fuel, and money.
IUL, by contrast, is like taking the express lane: Same destination, just faster, cheaper, and more efficient.
“If efficiency matters to you, and you’re trying to increase the likelihood that your money will last as long as you do, then Indexed Universal Life is the superior alternative”, says David.
David goes over what happens when you borrow money from your Whole Life policy vs. from your IUL.
It’s good to know that some IUL policies have wash loans or zero-cost loans that make accessing your money more predictable and sustainable.
David believes that, when it comes to retirement income and the volatility buffer concept, the IUL is more efficient and effective, as it gives you higher growth potential and more favorable loan features.
Mentioned in this episode:
David’s national bestselling book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track
PowerOfZero.com (free video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
Get David's Tax-free Tool Kit at taxfreetoolkit.com
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com