WHY DOES AN IUL GIVE YOU 5 TIMES MORE MONEY
THAN A 401K-403B-457 OR TSP?
An IUL will allow for positive market gains, no volatility, no market losses, liquidity, tax free income, and living benefits if you get sick now or later in life.
The Life Insurance company guarantees that you will never lose any of your principle. That's why Life Insurance is by far a bank's largest asset in (BOLI) Bank Owned Life Insurance and Premium Finance Loans.
If Banks just turn around and put their money in Life Insurance why don't we just put our money directly into Life Insurance?
But why does the IUL give us 5 times more money than a 401K type of account?"
Because we never withdraw money from the policy, we never take market losses and never have to pay taxes. Instead we use non reportable policy loans to provide annual tax free income for the rest of our life.
In this example below of policy loans we start to policy loans at age 67 of $61,957 for life. A policy loan is like a line of credit against the policy face value. Notice that the account value in the non guaranteed column keeps growing. Because the account keeps growing we will never run out of money.