What is Indexed Universal Life (IUL)?

IUL is permanent life insurance that can build cash value based on a market index crediting method, subject to caps, participation rates, and a floor. It is not an investment in the market.

What are caps, participation rates, and floors?

Caps limit credited interest, participation rates apply a percentage of index changes, and floors (often 0%) help protect against negative index years. Actual terms vary by carrier and product.

Can I access cash value?

Policies may allow withdrawals or loans. Loans and charges reduce cash value and death benefit and may cause the policy to lapse if not managed.

Who might consider IUL?

People seeking lifelong coverage with cash value potential, flexibility to adjust premiums, and estate planning benefits. It’s not right for every budget or need.

Indexed Universal Life (IUL) | Protect My Legacy Life

How IUL Works

IUL is permanent life insurance. Your premium covers the cost of insurance and policy charges; remaining dollars can build cash value that earns interest based on an index crediting method. You’re not directly invested in the market. Credit is typically subject to a cap and/or participation rate, with a floor (often 0%) in negative years. Terms vary by carrier.

Why People Choose IUL

Lifelong coverage with adjustable premiums and death benefit (within policy limits)
Cash value access via withdrawals/loans for future needs (reduces value/benefit)
Tax-advantaged features when structured and funded appropriately

Considerations & Costs

Policy charges, cost of insurance, riders, and loan interest apply
Underfunding or unmanaged loans can cause lapse
Caps/participation rates may change by product rules

IUL vs. Other Options

Mortgage Protection (term) can be more budget-friendly for pure income/home protection. Final Expense focuses on smaller permanent coverage with simple underwriting. IUL aims to blend lifelong protection with cash value potential.

Common Questions

Can I lose money?

Negative index years usually credit at the policy’s floor (often 0%), but ongoing charges still apply—so cash value can decrease if credits don’t outpace costs.

Can I take tax-free loans?

Loans are generally not taxable while the policy stays in force and isn’t a MEC, but they reduce cash value/death benefit and may cause lapse if unmanaged. Consult your tax professional.

How do I get an illustration?

We’ll compare carriers and provide a compliant illustration showing charges, loan options, caps/participation rates, and stress tests.

Next step: Book a quick consult or call (513) 202-4964.

Related: Mortgage Protection · Final Expense | States: Ohio · Texas · North Carolina · Alabama

Disclosures: IUL is not a direct investment in any index. Credits are limited by product terms and subject to charges. We do not provide tax or legal advice.

Why this matters

Protect your family

Keep your loved ones secure if the unexpected happens.

Fits your budget

We’ll show options and you choose what’s best.

Fast & simple

Quotes in minutes. Many policies can be e-signed.

Have questions?

Call or text (513) 202-4964 or book a time.

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