What is IUL Insurance?

IUL Insurance, or indexed universal life insurance, is a type of permanent life insurance policy that offers death benefit protection for the remainder of your lifetime, as well as a cash value component that provides you with the opportunity for higher returns…


In many ways, indexed universal life insurance is similar to traditional universal life, except IUL uses a different crediting method for determining the interest that accumulates in the cash-value component of the policy…

Pros and Cons of IUL Insurance

  • Pros
  • Opportunity to obtain market-linked returns
  • Protection of principal
  • Tax-deferred accumulation
  • Tax-free access to cash value
  • Flexibility
  • No annual maximum contribution limits
  • Permanent death benefit protection
  • Cons
  • Complexity
  • Charges & Fees
  • Surrender charges
  • Limited upside growth
  • No payout of dividends
  • No annual maximum contribution limits
  • Permanent death benefit protection

Tax Benefits of IUL Insurance Policies
Tax-Deferred Growth – The funds that are inside of an IUL Insurance policy’s cash value are allowed to grow tax-deferred. This means that there is no tax due on these gains unless or until the funds are withdrawn.

Tax-Free Access to Cash Value – IUL policyholders may be able to access funds from the cash value component tax-free by taking certain types of loans.

No Annual Maximum Contribution Limits – Unlike qualified retirement plans or traditional IRAs, there is no annual maximum contribution limit with an IUL policy. This means that additional funds can be contributed that allow for tax-advantaged growth.

Is IUL the Right Choice for You?