Indexed Universal Life (IUL)
Permanent coverage with cash value that can earn interest tied to a market index, subject to caps and floors.
What It Is
Indexed universal life (IUL) is permanent life insurance with a cash value component. Interest credited to the cash value is linked to the performance of a market index, subject to caps, participation rates, and floors. It is not a direct investment in the market.
Who It's For
People who want lifelong coverage along with potential cash value growth, and who can commit to funding a permanent policy.
Key Features
- Permanent coverage designed to last your lifetime if properly funded.
- Cash value potential linked to an index, with a floor that limits losses from index declines.
- Flexible premiums and adjustable death benefit, within policy limits.
- Policy loans and withdrawals may be available; they can reduce the death benefit and cash value.
Frequently Asked Questions
Is IUL an Investment?
No. IUL is life insurance. Cash value interest is linked to an index, but your money isn't invested directly in the market.
Can I Lose Money?
A floor helps protect cash value from index declines, but policy fees and charges still apply and can reduce cash value.
How Much Should I Put In?
It depends on your goals and budget. An agent can walk you through illustrations.
General information only, not a contract or offer. Terms, benefits, and availability vary by carrier, plan, and state.
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