Before accessing funds from your IUL or VUL policy, consult with a financial advisor to explore the implications, potential tax consequences, and assess alternative options to meet your financial needs effectively.

If you decide that accessing funds in your policy works with your financial plan, here are some common reasons people leverage their cash value:

Emergency Expenses: If you face unexpected financial emergencies, such as medical bills or home repairs, accessing the cash value can provide a source of funds without taking on additional debt.
Supplementing Retirement Income: During retirement, you might consider using the cash value to supplement your income.
College Funding: The cash value can be used to cover education expenses for yourself, a spouse, or children.
Debt Management: Accessing funds to pay off high-interest debts may help improve your financial situation.
Long-Term Care Needs: If you require long-term care, the cash value could help cover expenses. Policyholders that require long term care (or may require this in the future should also consider a Long-Term Care Rider).
Estate Planning: The cash value can be used strategically as part of your estate planning strategy, providing a legacy or covering estate taxes.

It’s important to be mindful of any tax implications and ensure the policy remains in force to sustain the death benefit and avoid lapsing.

Is there an ideal strategy for accessing cash value that limits my tax burden?

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