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…

Couple consults with IUL insurance expert


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 This means that there is no tax due on these gains unless or until the funds are withdrawn.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?