IUL (Indexed Universal Life)

What is Indexed Universal Life (IUL) Insurance?

Indexed Universal Life (IUL) Insurance is a flexible type of permanent life insurance that offers lifetime protection and the potential to grow your policy’s cash value based on stock market performance—without actually being invested in the market.

It combines life insurance coverage with the opportunity to build wealth over time, all in one policy.

More About IUL

Key Features:

Lifetime Coverage: As long as you pay the required premiums, your policy stays active for life.
Cash Value Growth Tied to an Index: Your cash value can grow based on the performance of a major stock market index, such as the S&P 500. If the index performs well, your cash value increases—up to a certain cap. If it performs poorly, your value won’t decrease due to market loss thanks to a built-in floor (usually 0%).
Tax-Advantaged Growth: Your cash value grows tax-deferred, meaning you won’t pay taxes on gains as they grow.
Flexible Premiums: You can adjust how much you pay and even use the cash value to help cover premiums later in life.
Access to Cash: You can borrow from the policy’s cash value for emergencies, investments, or retirement income.

Why Choose an IUL?

Great for people who want life insurance plus potential growth
Offers downside protection while still giving access to market-linked gains
Can be used as part of a retirement strategy or long-term wealth building
Provides tax-free loans if managed correctly