IUL
Indexed Universal Life (IUL)
Permanent life coverage with tax-advantaged growth tied to a market index.
What it is
An IUL is a permanent life policy with a cash-value component whose growth is linked to a stock market index — typically with a floor that protects against losses and a cap on the upside. The cash value can be accessed during your lifetime via policy loans, often used to supplement retirement income.
Who it’s for
People who want lifelong coverage plus a tax-advantaged way to build cash value they can borrow against later — commonly used as a retirement supplement or estate-planning tool.
What you get
- Lifetime death benefit when premiums are paid as scheduled
- Cash value grows tax-deferred, indexed to the market with a downside floor
- Tax-advantaged access to cash value via policy loans
- Flexible premium and death-benefit options
Common questions
Is my cash value invested in the stock market?
No — your cash value isn't directly invested in equities. Growth is credited based on the performance of an index (e.g. S&P 500) within carrier-defined floors and caps, so a down market doesn't reduce your principal.
When can I access the cash value?
Typically you can borrow against the cash value once it has built up — often in years 5-10 — and the loan generally isn't taxed as income when structured properly. We'll walk you through the specifics for your policy.
How is this different from a 401(k) or Roth IRA?
IUL isn't a replacement for retirement accounts — it's a complement. It offers a death benefit, no IRS contribution limits, and tax-advantaged access without the 59½ withdrawal restriction, but it has policy fees and caps that retirement accounts don't.
Not sure if IUL is the fit?
Take a minute to tell us what you’re trying to do, and we’ll point you to the product (or combination) that makes sense.