Does EIUL produce better returns than Mutual Funds and a 401K?

By | April 10, 2011

401k or IRA’S are also called tax delayed covers in the shared funding of EIUL and this is the basic subject of the discussion in this article.

Mutual Funds

The mutual funds should be discussed before further discussion. Mutual funds are formulated to decrease the chance of loss, because economists defined this as a possible variant for prevention. In the past time the mutual funds remained stable and created a bang in investment trends at Wall Street. We can also verify this with data, showing the behavior of people in investment, because we have a genuine data of two decades.

If we are talking about rich people, we have a complete record, in which most of it tells us how people became rich and what type of investment they had. These records are very clear for our mind. Mutual funds will cost less if the invested amounts are higher and they will also benefit the tax free retirement.


There are two main reasons for tax free retirement, being proposed by the government. First one is created to enhance the motivation to invest money. This policy was not designed only for the retired people, but it was also for the people who wanted to invest their pensions and national security. The second was to enhance the revenues by collecting taxes. Because of high returns and low reductions the 401K or IRA’s are the best policy rather than social security and other insurance policies, in which people are investing the capital to save their cash and returns.


There are two points of consideration for permanent life insurance that are cash worth and insurance point.  Cash has certain opportunities as you can use it in two directions, such as investment in stock markets and stable invested amount for insurance. The fixed point is equity index in which life insurance is fixed, but your invested amounts are also used in the stock markets. EIUL preserve the invested amounts by making a level, in which your cash will not decrease and will remain stable.

The amount of your invested capital will increase at the rate of 2% and 12% every year, so it is going up with the passage of time. You can estimate the appreciation value of your cash, by calculating the increase in the S & P 500 policy index each year. You can also take loans from your cash values to make equilibrium. These loans will not charge more than the profits paid by the companies in percentage. Tax free retirement also provides you a chance to get loans at cheaper interest rates against your policies, because tax implementation is not for the retired people. You are not required to pay the taxes and interest rates if your policy has a good standing position. If you are using this policy, then you have multiple options, in which you can return the loans before due date and can use your invested amounts at anytime.

Your cash value will not decrease, although it is based on the indexed rates. In addition, the cost of insurance will be low if you want to increase the value of your invested cash.

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