Why Haven’t I Heard About This Before
To be clear, the tax advantages of the policies are no secret. They are, however, complex for the average financial professional to implement without years of research and training. Unfortunately, many advisors or accountants who “haven’t done their research” can end up demonstrating a resistance to these contracts, based on uneducated or limited opinion versus fact, especially regarding the tax benefits and internal rate of return that can be achieved with IUL Laser Funds.
Also, to clarify, these are not tax loopholes. IUL LASER Funds have been used by the wealthy, both personally and in business, to protect and perpetuate wealth for decades. Many affluent and successful people have utilized these strategies to attain a tax-free retirement. The IRS has fully defined these benefits within Internal Revenue Code sections 7702, 72(e), and 101(a).
US Debt Clock
Per Person
$108,000
Debt/GDP
120%
Daily Interest
$1.5B
Data from TreasuryDirect
Updated: August 30, 2025
Beyond the death benefit, IUL LEGACY Funds can also serve as a powerful vehicle for your retirement savings. By “serious cash,” we mean the money you’ve intentionally set aside for your future. When these policies are properly designed, correctly structured, and maximum-funded, they not only protect your wealth but also shield it from the threat of rising taxes.
Our Experience Spans Every Industry and Challenge
Tax Savings 1
Money placed into these insurance contracts is taxed at today’s rates—not tomorrow’s. With the strong likelihood of higher taxes in the future (at unpredictable levels), paying taxes now can be a financially wise move.
Think of it this way: it’s always better to pay taxes on the seed money than on the harvest money.
Tax Savings 2
When structured properly and in line with Internal Revenue Code guidelines, money taken from your policy is not treated as taxable income—unlike distributions from a traditional IRA or 401(k). In fact, there are multiple ways to access your funds tax-free.
The most efficient and strategic method is through policy loans rather than direct withdrawals. This approach allows you to use your money while keeping the growth potential of your Legacy IUL Fund intact.
Tax Savings 3
Policy loans are generally not subject to income tax, unless the policy has been classified as a Modified Endowment Contract (MEC) under IRC Section 7702A. However, withdrawals or partial surrenders from a non-MEC policy may be taxable to the extent that the distribution exceeds the policy owner’s cost basis.
Do the math – MFTAs make sense
What $100,000 of Retirement Income Really Costs
Let’s assume you want $100,000 per year in retirement to cover travel, lifestyle, and living expenses—and you’re in a 33% tax bracket.
Using a 401(k): To end up with $100,000 in your pocket, you’d need to withdraw $150,000. That means $50,000 goes straight to taxes every year.
Using the Legacy IUL Fund: A properly structured, maximum-funded policy lets you access $100,000 as a loan—and you keep the full $100,000. No taxes.
The Difference:
Over time, those tax savings add up to years of extra retirement income. Instead of watching your nest egg shrink in 7–11 years, the Legacy IUL Fund can help ensure you never outlive your money—no matter how long you live.
