Indexed Universal Life Insurance (IUL) can help you accelerate paying off your mortgage by building tax-deferred cash value that you can access to make extra mortgage payments, potentially paying off a 30-year mortgage in about 15 years.

Here’s how it works:

Cash Value Growth: Your IUL policy accumulates cash value over time, linked to a stock market index with downside protection, allowing your savings to grow tax-deferred without direct market risk.

Tax-Free Access: You can borrow against or withdraw from the policy’s cash value tax-free to make additional mortgage payments, speeding up payoff while maintaining liquidity for emergencies or other needs.

Mortgage Interest Tax Benefits: This strategy lets you continue making regular mortgage payments, preserving the mortgage interest tax deduction, while using the IUL cash value to accelerate principal payments and reduce overall interest paid.

Flexible and Permanent Coverage: The IUL provides lifelong death benefit protection, ensuring your mortgage is covered in the event of your passing, and often includes riders for accelerated benefits in case of critical illness, adding financial security.

Example: A max-funded IUL can accumulate enough cash value in about 12 to 15 years to pay off a 30-year mortgage early, offering liquidity, safety, and tax advantages compared to traditional mortgage prepayment. In summary, by using an Indexed Universal Life Insurance policy to build cash value, you create a tax-advantaged source of funds to make extra mortgage payments, reduce your mortgage term significantly, maintain tax benefits, and protect your family with a death benefit. This makes IUL a smart, flexible tool for mortgage acceleration and long-term financial planning.