Indexed Universal Life Insurance
Permanent protection with cash value potential.
Indexed universal life is permanent life insurance — first and foremost a death benefit — with the potential to accumulate cash value.
Overview
Life insurance first.
Indexed universal life (IUL) is a form of permanent life insurance. Its primary purpose is to provide a death benefit to your beneficiaries. It is not a guaranteed investment or a retirement account.
Part of each premium pays for the cost of insurance and policy charges; the remainder may accumulate as cash value, credited with interest based in part on a market index, subject to caps, participation rates, and floors.
Policies offer flexibility in premium payments and death benefit options, but that flexibility requires attention. Underfunding, rising insurance costs, or lower-than-illustrated crediting can cause a policy to lapse.
Key Features
How an IUL policy works.
01
Death Benefit Protection
Provides an income-tax-free death benefit to beneficiaries in most circumstances, as long as the policy remains in force.
02
Index-Linked Crediting
Cash value may be credited based on index performance, limited by caps and participation rates that can change.
03
Policy Flexibility
Premiums and death benefit may be adjusted within policy limits, which affects long-term performance.
04
Cost of Insurance
Insurance charges typically increase with age and are deducted from cash value each month.
05
Policy Loans & Withdrawals
Cash value may be accessed, but loans accrue interest and reduce the death benefit and cash value.
06
Illustrations
Illustrations are hypothetical projections, not guarantees. Actual results will differ.
Important Considerations
Understand the limitations.
- IUL is not an investment and does not guarantee returns. Non-guaranteed elements can change.
- Policy fees and insurance charges can be substantial, especially in early years.
- Policies can lapse if cash value is insufficient to cover charges, which may result in tax consequences.
- Surrender charges may apply in early policy years.
- Approval is subject to underwriting; premiums depend on age and health.
May Be Worth Exploring If
- You have a long-term need for permanent life insurance protection.
- You can commit to funding a policy consistently over many years.
- You want to understand how cash value accumulation may complement other savings.
- You are evaluating options for family or business protection.
Suitability depends on your individual circumstances. A consultation is educational and does not obligate you to purchase any product.
Private Consultation
Your Financial Future Deserves Thoughtful Attention.
Speak with our team to explore retirement income and financial protection options aligned with your goals.