Estate Planning: IUL vs. 401(k) for Legacy Building For those looking to pass wealth on to future generations, an index universal life insurance vs. 401(k) comparison reveals key differences. A 401(k) balance can be inherited, but beneficiaries may face tax obligations upon withdrawal. In contrast, an IUL provides a tax-free death benefit, ensuring that heirs receive the full amount ... https://www.federalpensionadvisors.com/post/iul-vs-401k