Protect your retirement income, grow your wealth tax-free, and avoid the next market crash — all with one proven strategy.
Index Universal Life (IUL) is a type of permanent life insurance that combines life insurance protection with a cash value component that can grow based on the performance of a stock market index, like the S&P 500.
IUL gives you the opportunity to participate in market gains when the market goes up, but protects you from losses when the market goes down. Your cash value has a guaranteed floor (typically 0-2%) so you never lose money due to market downturns.
Understanding the mechanics behind IUL helps you see why it's become a popular wealth-building strategy.
Part of your premium goes toward life insurance costs, and the remainder goes into your cash value account.
Your cash value is credited with gains based on the performance of a market index, subject to caps and floors.
Take tax-free loans against your cash value for retirement income, emergencies, or opportunities.
This determines what percentage of the index gain you receive. For example, if the S&P 500 gains 10% and your participation rate is 80%, you'd be credited with 8%.
This is the maximum return you can receive in any given year. If the index gains 20% but your cap is 12%, you'd receive 12%.
No matter how badly the market performs, your cash value is protected by a guaranteed floor (typically 0-2%). This means you never lose money due to market downturns.
One of the most compelling features of IUL is its tax treatment, which can significantly enhance your wealth-building potential.
Your cash value grows without being taxed each year, allowing compound growth to work more effectively.
Access your cash value through tax-free policy loans, providing retirement income without tax consequences.
The death benefit paid to your beneficiaries is generally received income tax-free.
IUL is particularly well-suited for certain financial situations and goals.
Business Owner
"I was maxing out my 401(k) but wanted more tax-free retirement income. My IUL has grown consistently and gives me peace of mind knowing I'm protected from market crashes."
High-Earning Professional
"As a surgeon, I needed life insurance anyway. IUL lets me build wealth while protecting my family. The tax-free access is a huge bonus for retirement planning."
Married Couple
"We were worried about taxes in retirement. Our IUL policies will provide $100,000+ per year tax-free, and our kids get a substantial death benefit."