Indexed Universal Life (IUL)
Lifetime protection with cash value that can grow.
An IUL is permanent life insurance that protects your family for life and builds cash value linked to a stock market index, such as the S&P 500, without investing directly in the market.
- Growth potential: cash value earns interest based on index performance, up to a cap
- Protection from losses: a 0% floor means market drops do not reduce credited interest below zero
- Tax advantages: cash value grows tax-deferred, and you may access it through policy loans and withdrawals
- Living benefits: many plans let you use part of the death benefit for chronic, critical, or terminal illness
- Flexible premiums: adjust what you pay as your life changes
IULs are not investments in the stock market. Caps, participation rates, fees, and charges apply. Policy loans and withdrawals reduce the cash value and death benefit and may cause the policy to lapse. Guarantees depend on the claims-paying ability of the issuing carrier. Ask for a carrier illustration for your exact numbers.
Is an IUL right for you?
An IUL can be a good fit if you:
- Want coverage that lasts your entire life
- Want tax-advantaged cash value you can access for retirement or emergencies
- Want to leave a tax-free benefit to your family
- Have already maxed out or want to supplement a 401(k) or IRA
- Are a business owner planning for key-person or buy-sell coverage
Plain-English guide
Term vs. whole life insurance
Term Life
- Covers you for a set period: 10, 20, or 30 years
- Lower cost than permanent coverage
- Ideal to protect a mortgage, income, or young family
- No cash value
Whole Life & Final Expense
- Covers you for your entire life
- Premiums never go up
- Coverage lasts to age 121
- Builds cash value over time
- Ideal for funeral costs and leaving a legacy