Permanent coverage · Cash value tied to an index Indexed universal life

Lifetime coverage with room to grow.

IUL is permanent life insurance with flexible payments and a cash value that earns interest based on a market index. It comes with a floor for down years and a cap for strong ones. I'll show you exactly how it works, including the parts most agents skip.

Watch the explainer video

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What it is

Insurance first, with a flexible savings side.

01Permanent life insurance that can last your whole life when it's funded properly.

02Flexible payments. You can pay more in good years, within limits.

03Cash value earns interest based on an index like the S&P 500. Your money isn't invested in the market itself.

04A floor, often 0%, means a down year doesn't credit a loss. Policy charges still come out.

05A cap limits how much interest you can earn in a strong year.

06You can access cash value later through loans or withdrawals. Loans charge interest and reduce the death benefit.

07Many policies include living benefits, letting you use part of the death benefit early for a serious illness.

08The death benefit goes to the people you choose, generally free of income tax.

How the index works

Some of the upside, none of the market's down years.

Strong year

Index+18%

You're credited+10%

Capped at the example 10%.

Average year

Index+6%

You're credited+6%

Under the cap, so you get it all.

Down year

Index−20%

You're credited0%

The floor protects credited value. Charges still apply.

Example only, using a 10% cap and 0% floor. Real caps, floors and participation rates vary by policy and can change.

A good fit if you…

Want coverage for life, not just 20 or 30 years
Have steady income and can pay more than the minimum
Can keep it for the long haul, 15 years or more
Want flexible payments and living benefits
Like some growth potential with a floor under it

Probably not a fit if you…

Need the most coverage for the least money. Term life fits better.
Want fully guaranteed growth. Whole life fits better.
May need the money in the next few years
Can only afford the bare minimum payment

The honest part What to know before you buy. IUL can be a great tool when it's set up and funded right. These are the things I walk every client through.

!It's life insurance, not an investment or a retirement account.
!The cost of insurance rises as you age and comes out of the cash value.
!If it's underfunded, it can lapse later in life. Funding it right matters.
!Illustrations show what could happen, not what will. Only the guaranteed column is guaranteed.
!Caps and participation rates can change after you buy.
!Early surrender charges apply. Talk to a tax professional about loans and withdrawals.

Prefer to watch? IUL Explained Simply: The Honest Version The good, the trade-offs, and who it's really for. Watch on YouTube

What to expect

IUL starts with a conversation.

1A 15-minute reviewYour goals, your timeline and a budget you can keep up with.
2I design and compareIllustrations from several companies, built to stay funded.
3We read it togetherWhat's guaranteed, what isn't, and what happens if rates change.
4ApplyFull underwriting, which may include an exam or records. Usually 2 to 6 weeks.
5Yearly check-insWe review it every year to keep it on track.

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Common questions

Can I lose money in an IUL?

The floor keeps a down year from crediting a loss, but policy charges still come out. If credits don't cover the charges, cash value can go down.

Is IUL an investment?

No. It's life insurance. The cash value is credited based on an index, but you don't own stocks or funds.

How is it different from whole life?

Whole life has a fixed price and guaranteed growth. IUL has flexible payments and growth tied to an index, with more potential and fewer guarantees.

What if I need to pay less one year?

Payments are flexible, so you often can. Paying less for long stretches can put the policy at risk, so call me first.

See if IUL fits your plans.

A 15-minute review. Straight answers, no pressure.

Book a free 15-minute review