Indexed Universal Life

Indexed universal life (IUL) is a form of universal life insurance that combines life insurance protection with policy value governed by the contract. Interest credits may be calculated using a formula tied to an external market index, but the policyowner does not invest directly in the index and does not receive its full market return.

The crediting method may include caps, participation rates, spreads, floors, or other limits. These terms can change as allowed by the contract. Policy charges and insurance costs are generally deducted from policy value, so a zero or positive index credit does not necessarily mean the policy value cannot decline. Actual results depend on the contract, premiums, charges, and crediting history.

Some IUL policies allow flexibility in premium timing or amount, within contractual rules. Flexibility does not remove the cost of keeping coverage in force. If policy value is not enough to cover charges, additional premiums may be needed or coverage may end. Loans and withdrawals can reduce policy value and death benefit and may create tax consequences, especially if coverage lapses or is surrendered.

Before considering an IUL, review the policy illustration and contract. Separate guaranteed values from non-guaranteed assumptions, ask what happens under lower crediting scenarios, and compare the planned premium with the amount needed to support coverage. Request an in-force illustration later if you already own a policy.

Availability, eligibility, costs, guarantees, and terms vary by carrier, product, state, and application. The issuing carrier determines final underwriting and policy terms. A quote or illustration is not a guarantee of future performance or coverage. Request a call to discuss whether an IUL may fit what you are looking for.