Retirement Flexibility: IUL vs. 401(k) The flexibility of a retirement plan is crucial when considering IUL vs. 401(k). A 401(k) locks funds until age 59½, with early withdrawals resulting in penalties and taxes. However, an index universal life insurance policy offers greater financial freedom by allowing access to cash value at any time through tax-free policy loans. This means tha... https://www.federalpensionadvisors.com/post/iul-vs-401k