Life Insurance
Indexed Universal Life (IUL)
Permanent life insurance with cash value that can grow based on a stock market index, with a floor that protects your credited interest in down years.
At a glance
- Coverage lasts
- Your whole life, if funded
- Premiums
- Flexible
- Cash value growth
- Linked to an index
- Growth floor
- Typically 0%
- Access
- Policy loans and withdrawals
How it works
An IUL has a death benefit and a cash value account. Interest credited to the cash value is tied to a market index, such as the S&P 500, but your money isn't invested directly in the market.
In a good year, you earn interest up to a cap or participation rate. In a down year, a floor, often 0%, keeps your credited interest from going negative.
You can adjust premiums within limits and take policy loans or withdrawals, which can be income tax free when the policy is set up and managed properly.
Who it's for
- People who want lifelong coverage plus growth potential
- Higher earners looking for tax-advantaged savings
- Parents planning for college costs or retirement income
- Anyone ready to fund a policy consistently for many years
Good to know
- Policy fees and the cost of insurance come out every month, so cash value can still go down if a policy is underfunded.
- Caps and participation rates can change over time.
- An IUL works best when funded consistently for many years. It isn't a short-term savings plan.
- Before you decide, we'll show you an illustration with both guaranteed and non-guaranteed values.
Ready to talk it through?
Book a free 15-minute call by phone or video. No obligation and no pressure.