Some asset classes benefit from tax deferral more than others. Investing fixed income, funds with high turnover or alternatives in a tax deferred vehicle can maximize the impact of tax deferral.
The average cost of a commissioned VA is 135 bps, which eviscerates the value of tax deferral. With a Commission-Free VA costing 20-30 bps, clients can reap the benefits of tax deferred growth.
A key to getting the benefits of tax deferral is keeping costs low. The lowest priced products are typically IOVAs. They offer more investment options and more ways for advisors to manage assets.
Wealth Accumulation Products
| Type | Summary | |
|---|---|---|
| Variable Universal Life Insurance | Variable Universal Life is a permanent life insurance policy where the cash value is invested in funds or fixed accounts providing opportunity for growth. Its structure allows for flexible premium payments and an adjustable death benefit, which can be impacted by the investment performance of the cash value. Because of its variable... |
