Watch this first
How Cash Value Life Insurance Works
How permanent life insurance can build usable cash value while keeping protection in place.
⚙️ Client Profile
QUICK:
VS
$500/mo
10.5%
📊 Real Data Mode: This tool uses actual S&P 500 annual returns — including the dot-com crash, 2008 financial crisis, and 2022 bear market. The market account takes every loss. The insurance account floors at 0%.
0
Crash Years Absorbed
$0
Saved by 0% Floor
0
Years of Real Data
What do these numbers mean?
These are real market crashes that actually happened during this time period — not hypothetical scenarios. The "Saved by 0% Floor" number shows how much money would have been protected from loss because the insurance account never goes below zero, even when the market drops.
The bottom line
This advantage is calculated using actual historical S&P 500 returns — not projections or averages. It shows what would have actually happened to your money, year by year, through every boom and every crash. The insurance strategy uses a 0% floor, meaning in down years your account simply stays flat instead of losing money.
Roth IRA
Capped at $7,000/yr · Market Exposed
$0
Projected Net After-Tax Balance
Assumed Rate of Return0%
Annual Limit$7,000/yr
Total Contributed$0
Taxed at Retirement?No
Death Benefit✗ None
Living Benefits✗ None
Market Risk✗ Full risk
Indexed Universal Life
No Caps · 0% Floor · Tax-Free Access
$0
Projected Tax-Free Cash Value
Cap-Adjusted Return0%
Annual LimitNone
Total Contributed$0
Taxed at Retirement?No (Loans)
Est. Death Benefit$0
Living Benefits✓ Included
Market Risk✓ 0% floor
Why does this matter for your family?
A traditional retirement account only gives you an account balance. When you pass away, your family gets whatever is left. With life insurance, your family receives a guaranteed, tax-free death benefit on top of your cash value — often many times larger than what you've contributed. That protection starts from day one.
📈 Real Historical Growth Comparison
The gold line is the insurance account (protected by the 0% floor). The blue dashed line is the traditional account (exposed to every market drop). Watch how they diverge after each crash.
📋 Year-by-Year Snapshot (Net After-Tax)
| Year | Period | Roth IRA | IUL Cash Value | Advantage |
|---|
🔍 Feature-by-Feature Comparison
| Feature | Roth IRA | Indexed Universal Life |
|---|
Ready to build your tax-free wealth strategy?
Every number above is based on your actual profile. Let's structure your official plan today.
Send Client to Booking →
⚠️ Important Disclosure: This calculator provides hypothetical illustrations only and is not a guarantee of future performance. Actual results will vary based on carrier, policy structure, health classification, market conditions, and other factors. IUL caps, participation rates, and COI charges vary by carrier and are subject to change. Past S&P 500 performance does not guarantee future results. Policy loans accrue interest and reduce the death benefit. Consult with a licensed professional before making financial decisions. First Freedom Life is an independent insurance brokerage — we are not a registered investment advisor.