Beyond term: Build security, growth, and liquidity under one strategy.”

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Should You Buy Term and Invest the Difference?

For decades, the “buy term and invest the difference” approach has been positioned as a cost-effective alternative to permanent life insurance. The idea is simple: purchase inexpensive term insurance and invest the money you save into market-based investments.

While this strategy may sound appealing, it often overlooks one major factor — taxes.

Even with strong market performance, failing to plan for long-term tax exposure can create challenges in retirement. High future tax liabilities can reduce your spendable income, limit your lifestyle, or increase the risk of outliving your savings.

A strong retirement strategy isn’t just about growth — it’s also about tax efficiency, access, protection, and long-term stability.

We encourage clients to evaluate all options fully and consider vehicles that support retirement income in a tax-advantaged way.

Disclaimer: Life insurance policies are not investments and should not be purchased as investment products.

Buy Term & Invest the Difference: Is It the Best Strategy?

The IUL LASER Fund: A Modern Approach

The IUL LASER Fund: A Modern Approach

When structured correctly and funded properly, an Indexed Universal Life policy (IUL) can provide long-term benefits that traditional “buy term and invest the difference” approaches often overlook.

A maximum-funded IUL — what we call an IUL LASER Fund — can offer:

  • More cost efficiency than traditional permanent life insurance

  • A death benefit for legacy planning

  • Tax-advantaged access to cash value

  • Liquidity and flexibility

  • Protection from market downturns

  • Long-term stability

The concept was introduced in the 1980s as a way to help families mitigate the impact of market volatility, taxes, and inflation.

With an IUL LASER Fund, your money is linked to market performance, not directly invested in the market. This means:

  • You can participate in market gains

  • Your principal is protected from market losses

  • Gains can be locked in

  • Growth continues without exposing your savings to downturns

This approach allows individuals to potentially become “self-insured” within a structured time frame.

Disclaimer: Life insurance policies are not investments and should not be purchased as investment products.

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A Strategy Built for Long-Term Confidence

Many individuals and families are looking for ways to grow their wealth safely, predictably, and with greater tax efficiency. Strategies structured for long-term stability have historically delivered consistent results — often in the 5%–10% annual range, depending on market conditions and policy design.

At that pace, every $1 million accumulated could potentially generate $70,000–$100,000 of tax-advantaged retirement income — while preserving the principal for future needs.

At Evergreen Wealth & Co., our focus is simple:

  • Protect your wealth

  • Strengthen your retirement foundation

  • Support long-term tax efficiency

  • Build lasting financial confidence

We’re committed to helping you understand your options clearly so you can make decisions that support your goals, your values, and the future you want to create.

What’s an IUL LSER Fund Solution

  • In a max-funded IUL, liquidity refers to your ability to access the cash value of the policy while it is in force. Unlike some investments that lock up money for years, a properly structured IUL allows policyholders to take loans or withdrawals from the cash value for emergencies, opportunities, or lifestyle needs—without losing the death benefit. This means your money isn’t just sitting there; it can work for you when you need it most.

  • The safety of a max-funded IUL comes from its design: although your cash value is linked to a market index, it is not directly invested in the market. This means you participate in market upside but are protected from market losses by a guaranteed minimum floor (usually 0%). Your principal cash value won’t decrease due to stock market downturns, giving you a level of safety not found in traditional market investments.

  • The rate of return is the growth your cash value earns over time. In a max-funded IUL, this is typically indexed to a market benchmark, like the S&P 500, with a portion of the market gains credited to your policy. Historically, these strategies have produced average annual credited rates of 5–10%, depending on the index, caps, and participation rates. The growth is tax-deferred, allowing compounding to occur without annual taxes eroding the gains.

  • ne of the most powerful features of a max-funded IUL is tax-free access to your cash value. When structured correctly, you can take policy loans or withdrawals that are generally income-tax-free, unlike withdrawals from traditional retirement accounts. This allows you to use your money for retirement, emergencies, or opportunities while preserving your wealth and minimizing taxes.

Choose Safety

Imagine reaching retirement with the confidence of knowing your money is still growing, even while you’re using it. With the right tax-free strategies, every $1 million saved could create $70,000–$100,000 of annual income—without depleting your nest egg. That’s how smart, predictable, and secure wealth-building should feel.

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