Access Money Tax Free?

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I heard an agent say that you can "access your money tax free" with an indexed universal life policy. This implies that withdrawals or distributions are tax free? Is that right or is this agent being deceptive? I always thought that these insurance products grow tax free but then distributions are eventually taxed higher at the ordinary income tax rate.
 
I heard an agent say that you can "access your money tax free" with an indexed universal life policy. This implies that withdrawals or distributions are tax free? Is that right or is this agent being deceptive? I always thought that these insurance products grow tax free but then distributions are eventually taxed higher at the ordinary income tax rate.

That's because you have no idea what you are talking about as usual.
 
Withdrawals are tax free up the the basis. Loans are not taxed as long as the policy is in force.

Most of the time it makes sense to take the loan if its UL, if its WL sometimes withdrawing to basis first makes sense. You can choose from wash loans or participating loans with most UL carriers.
 
He is considering the source of the question and the underlying assumptions made in that question.

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You are confusing life insurance with non-qualified annuities.
 
Who is this clown? Has he never encountered a question before?

It is the underlying assumption in the question that the agent may be dishonest. The question could have been asked straight out, "Can life insurance cash values be accessed tax free on an IUL." without questioning the agent's integrity.
 
That I don't know.. But I do know that it gets a little tiresome that every time a question is raised, people, even other agents, assume there is agent dishonesty involved.

Lets keep in mind this is the individual who originally asked about SEP distributions getting screwed up with a VA transfer because he failed to speak to an agent or the original carrier and just trusted the customer service reps at Vanguard where he was 1035ing the funds to.

He also speaks of the Fiduciary Standard but quotes advice from Clark Howard who is not held to even a suitability standard with his advice, much less a fiduciary standard.

He speaks of a fiduciary standard but claims everyone should be in ETFs... anyone here who acts as a fiduciary knows that a genralized comment like that or allocating funds to just one type of financial product would be a major violation of the fiduciary standard.

This is also the person who takes advice from websites that have clear misinformation in them. And when facts that are contrary to his belief are brought up he ignored them.

This is a person that asks the forum questions... yet wants to tell the forum how dumb they all are without even knowing who he is talking to...

Lets just all agree that at this point this guy is nothing more than a troll who is looking to flame the annuity section because of his negative experiences with VAs. (and he doesnt even realize that 90% of the annuity section has nothing to do with VAs, which are a totally separate animal than FAs.)
 
Lets keep in mind this is the individual who originally asked about SEP distributions getting screwed up with a VA transfer because he failed to speak to an agent or the original carrier and just trusted the customer service reps at Vanguard where he was 1035ing the funds to.

He also speaks of the Fiduciary Standard but quotes advice from Clark Howard who is not held to even a suitability standard with his advice, much less a fiduciary standard.

He speaks of a fiduciary standard but claims everyone should be in ETFs... anyone here who acts as a fiduciary knows that a genralized comment like that or allocating funds to just one type of financial product would be a major violation of the fiduciary standard.

This is also the person who takes advice from websites that have clear misinformation in them. And when facts that are contrary to his belief are brought up he ignored them.

This is a person that asks the forum questions... yet wants to tell the forum how dumb they all are without even knowing who he is talking to...

Lets just all agree that at this point this guy is nothing more than a troll who is looking to flame the annuity section because of his negative experiences with VAs. (and he doesnt even realize that 90% of the annuity section has nothing to do with VAs, which are a totally separate animal than FAs.)
Look at all of the misinformation and lies. Where do I begin. No SEPP was ever screwed up in the end. In fact I got misinformation I believe from YOU. I believe it was YOU who told me that my 1035 exchange would break the IRS SEPP rules. Wrong!

Clark Howard has no conflict of interest. He's a CONSUMER advocate. I'll trust him over any product pushing insurance salesman always.

Websites that have clear misinformation in them? I have no idea what you're even talking about. Sounds like I said something negative about the annuities that you SELL and this upset you.

When all you can do is marginalize someone with insults you have lost the debate and you are out of material. VA's the only terrible annuity? You are definitely an insurance salesman. Don't even get me started on FA's and IA's!
Suzie Orman always says to keep insurance as insurance and keep investments as investments. NEVER combine the two. Oh let me guess, you're gonna say that Suzie Orman is a consumer advocate and therefore she's not a fiduciary. Get lost!
 
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