If you’ve ever looked at your investments and thought, “Why isn’t this growing?” You’re not the only one. Lots of people have savings or investments that just sit there, not really doing much. Maybe it’s an old bank account, a CD (kind of like a savings account with a time limit), or even a rental house that’s more trouble than it’s worth. These things might seem safe, but they’re not really helping your money grow.
The good news? You don’t have to leave things that way. You can do something about it!
You can move those underperforming investments into something that works smarter for you, without taking big risks or losing access to your cash. That’s where an Indexed Universal Life (IUL) insurance policy comes in. It’s a special kind of life insurance that can help your money grow, keep it safe from big losses due to market volatility, let you access money through loans without paying taxes, and give you more choices with how you use it.
Let’s look at how you can turn those slow-moving savings into something that helps you now and also helps the people you care about in the future.
Spotting the “Dead Weight” in Your Portfolio
Every portfolio has its weak links. Maybe you’ve got a high-balance savings account earning less than 1% interest. Maybe you’re holding onto a conservative bond fund that hasn’t outpaced inflation in years. Or perhaps you have equity in a property that’s producing more stress than income. These assets might seem “safe,” but in reality, they’re losing purchasing power or adding more headaches than they’re worth.
That’s where you need to ask yourself:
- Is this helping me grow my money?
- Can I get to it when I need it?
- Is it safe from taxes or market drops?
If the answer is “not really,” it might be time to make a change. You don’t need to abandon these assets. You just need to reallocate them more strategically.
How IUL Helps You Grow and Protect Your Money
An IUL policy is a type of life insurance, but it’s also a smart way to grow money with less risk. How does an IUL work? When you put money into an IUL, it goes into a cash value account that grows based on how the market does, but without the risk of losing money due to market volatility if the market drops.
Your money is protected with a 0% floor, and when the market goes up, your cash value grows, too, often up to a cap, depending on the index strategies you choose. Plus, if the policy is set up correctly, you can access money tax-free later.
The result? If structured properly, you get the upside potential of the market without the downside risk, and the policy’s cash value can be accessed tax-free through loans or withdrawals.
So, imagine shifting $100,000 from a savings account earning 0.5% annually into an IUL that historically averages 5% growth with tax-deferred compounding. Over a decade or more, the difference in performance and flexibility can be dramatic.
Unlocking Liquidity and Control Without Sacrificing Safety
One of the biggest concerns you might have when moving money is losing access to it. Traditional retirement accounts often come with penalties for early withdrawals based on age restrictions. Real estate requires time and effort to sell or borrow against. But with an IUL, you have liquidity on your terms.
With your IUL, you can take policy loans without triggering taxes, credit checks, or lengthy applications. Need funds for a business opportunity? Want to help your child with college expenses? Looking to cover unexpected medical costs or home repairs? Your IUL gives you the freedom to respond in real time without locking up your capital or worrying about how it affects your taxes or retirement.
Even better, with IUL policy loans, your money doesn’t stop growing. Your cash value acts as collateral for the loan, so your money keeps earning interest in the background, because it never left. That’s not something you can do with a savings account or bonds.
IUL vs. Common Underperformers
Here’s how IULs compare to a few places your money might be sitting now:
- Savings Accounts: Easy to use, but very low growth. IULs give you both access and better long-term potential.
- CDs: Lock your money in for low returns. IULs offer more flexibility and no penalties for early withdrawal.
- Low-Yield Bonds: Safe but slow. IULs also protect your money, but with more growth potential.
- Struggling Real Estate: Costly and time-consuming and can lose value in a market downturn. IULs don’t require repairs, property management, and are protected with a 0% floor.
By comparing these options, it becomes clear that IULs are a powerful alternative, especially when you want a balance of growth potential, tax-free access, and market protection.
How an IUL Can Help Balance and Grow Your Money
Even if your investments are doing well, an IUL can still play an important role. Think of it as a safe zone for your money, where it can grow steadily and be available when life throws you a curveball.
Let’s say the stock market takes a dip. Instead of selling your investments at a loss just to get cash, you could use your IUL. That gives your other investments time to bounce back while you still have access to funds.
An IUL isn’t just for replacing slow-moving assets; it can actually strengthen your whole financial plan. It adjusts with your needs and helps support your goals, both now and in the future.
What You Need to Get Started
Turning underperforming assets into an IUL strategy isn’t complicated, but it should be done intentionally. Start by evaluating your current financial position. What assets produce meaningful returns? Which ones feel like dead weight? From there, consult with a Utah-licensed IUL specialist who can help you structure the policy correctly, align it with your goals, and ensure it performs efficiently over time.
You’ll want to make sure your policy is designed for maximum cash value accumulation, not just death benefit. That means funding it sufficiently and choosing the right index strategies, caps, and riders.
With the right guidance, you’ll set yourself up with a financial tool that works in more ways than one.