Indexed Universal Life (IUL)
Market-linked growth with a floor that protects your downside.
Indexed universal life is permanent coverage whose cash value is credited based on the movement of an index such as the S&P 500 — subject to a cap on the upside and a floor, usually 0%, that protects you in a down year. Premiums are flexible, and access to cash value can be structured tax-advantaged.
How index crediting works
Your cash value is not invested in the market directly. The carrier credits interest based on index performance over a segment period, limited by a cap or participation rate. If the index falls, the floor prevents a negative credit — you simply earn zero for that segment rather than losing principal.
The tradeoff is real: you give up dividends and the upside above the cap in exchange for downside protection. Anyone who tells you an IUL delivers market returns with no downside is selling, not advising.
Flexible premiums and funding
Unlike whole life, IUL lets you vary what you pay within limits. Fund it heavily in strong years and lighter in lean ones. That flexibility is powerful for business owners and commission earners, but it also means an underfunded policy can lapse — which is why we build in a funding plan and review it annually.
Tax treatment
The death benefit is generally income-tax-free to beneficiaries. Cash value grows tax-deferred, and properly structured policy loans can provide tax-advantaged access in retirement. Structure matters enormously here, and we design to keep the contract compliant.
Indexed Universal Life (IUL) FAQs
Someone is always watching over your family.
That's the whole idea. Let's make sure the plan behind it is real, funded, and matched to the people you love.