- Indexed Universal Life, often called IUL, is permanent coverage. It can last your whole life if it is funded and managed well.
- Part of the premium pays for the death benefit. Another part can build cash value credited using an index such as the S&P 500, subject to a cap, a participation rate, and a floor.
- The floor (often 0%) means a down market year typically does not take the credited cash value negative from the index. Caps and fees still matter.
- IUL is not a mutual fund and not a guarantee of market returns. Poor funding can cause a policy to lapse.
Who an IUL is for
People who want permanent coverage and are willing to fund it with more than the minimum premium. High earners who have already used other tax-advantaged accounts. Business owners who want cash value they may borrow against later. Anyone who was shown an IUL illustration and wants a licensed agent to pressure-test the assumptions.
What we check before we recommend one
Caps, participation rates, and policy charges change. Illustrations are not promises. We compare carriers, look at historical cap behavior, and design to a funding level that can survive a string of average years — not a string of perfect ones.
Read the longer explainer: Indexed Universal Life (IUL), explained plainly.
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Educational only. Products, features, and availability vary by carrier and by state. This is not an offer of insurance, tax advice, or a recommendation of any specific policy. Licensed in AL, AZ, AR, CO, ID, LA, MS, MT, NC, NM, SC, TN, UT, WV, WY. Iron Tusk Insurance Group, LLC. National Producer Number #22311194.
Want an IUL designed conservatively?
Bring the illustration you were shown, or start from scratch. We will tell you if another product does the job with less moving parts.