Indexed Universal Life, explained simply.
Permanent life insurance with cash value linked to a market index — growth potential in good years, a floor in bad ones, and a death benefit the whole way.
Growth potential, with a floor under it.
An IUL is permanent life insurance whose cash value is credited based on the movement of a market index, such as the S&P 500 — but you’re not invested in the market directly. You participate in index gains up to a cap, a floor (often 0%) protects your indexed value from index losses, and you get tax-advantaged access to cash value plus a death benefit for the people who depend on you.
A floor, a cap, and access.
A floor and a cap
Cash value is credited based on index performance up to a cap. A floor — frequently 0% — means a down index year doesn’t subtract from your indexed value.
Tax-advantaged access
Cash value grows tax-deferred and can generally be accessed through policy loans and withdrawals — a flexible supplement alongside your other retirement income.
Protection that stays
Unlike term insurance, an IUL is designed to last your whole life, leaving a death benefit for your family no matter when it’s needed.
Who it fits — and what to weigh.
Long-horizon savers who want growth potential with downside protection and permanent coverage — and who can commit to funding the policy adequately over time.
An IUL carries insurance costs and charges; caps and participation rates are set by the carrier and can change. Policy loans reduce the death benefit and cash value, and a lapsed policy can create a taxable event. It is not a stock-market investment, and any guarantees rely on the claims-paying ability of the issuing carrier.
This page is educational and not a recommendation, offer, or a promise of any specific result. Product features vary by carrier and state and are subject to underwriting. See the full disclosures below.
Is an IUL the right fit for your plan?
We’ll walk through how the cap, floor, and funding actually work for your numbers — in plain language, with no obligation — so you can decide with clear eyes.
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