An Indexed Universal Life policy is a permanent life insurance policy with a cash value component that earns interest based on the performance of a market index (e.g., S&P 500) without directly investing your premiums into the market.

The policy credits interest using a customized indexing strategy around specific caps and/or participation rates. Additionally, IULs offer a floor (often 0%) ensuring your principal balance is protected even in the event of market downturns.

IULs typically protect against negative returns via a floor, but gains are not necessarily guaranteed if the markets underperform. Results are also dependent on the insurer's crediting rules and fees.

Yes — accumulated cash value can be accessed tax-free through policy loans to help supplement retirement income. For this reason, IULs can serve as a great addition to your retirement plan especially if you find yourself already making maximum contributions towards your 401K and/or IRA.

Costs include premiums, cost of insurance, and policy fees; risks include policy underperformance and the potential to lapse if the policy is not properly structured and/or funded.

Contact our IUL specialists for a personalized illustration and needs analysis so we can model projected cash value and death benefit scenarios tailored to your goals.