Indexed universal life (IUL), explained honestly.
Permanent life insurance with flexible premiums and cash value that can grow based on a market index, with a floor that protects against index losses.
Protection with growth potential.
An IUL policy provides a death benefit for life plus a cash value account. Interest is credited to that account based on the performance of an index such as the S&P 500®, up to a cap. In years the index falls, a floor (often 0%) means you don’t lose credited value to index losses.
IUL is powerful when it’s designed and funded correctly, and disappointing when it isn’t. Policy charges continue every year regardless of index returns, and underfunded policies can lapse. That’s why we show you illustrations at conservative rates, not best-case numbers.
How it works
- Death benefit for life when properly funded
- Cash value credited based on index performance, subject to caps and participation rates
- A floor (commonly 0%) protects against negative index years
- Flexible premiums within policy limits
- Policy loans and withdrawals can provide access to cash value
- Many policies include living benefits riders
Indexed universal life insurance is not a security and does not directly participate in any stock or equity investment. Index crediting is subject to caps, participation rates and spreads that vary by carrier and may change. Policy charges continue regardless of index performance. Policy loans and withdrawals reduce cash value and death benefit, may cause the policy to lapse, and may have tax consequences. Guarantees are backed by the claims-paying ability of the issuing insurer. Not tax or legal advice.
Is this right for you?
Higher earners
Who have maxed other options and want permanent coverage with growth potential.
Business owners
Seeking flexible permanent coverage and access to cash value.
Long-term planners
Who can fund a policy consistently for many years.
Indexed Universal Life FAQ.
Serving Alpharetta and North Atlanta from 126 N Main St, Suite B200.
Is IUL a good investment?
IUL is life insurance, not an investment. It can be a good tool for permanent protection with cash value growth potential, but it has costs, caps and risks. It works best for people with a long time horizon who fund it properly.
Can I lose money in an IUL?
Credited interest won’t go below the floor because of index performance, but policy charges are deducted every year. If credits don’t cover charges, cash value can decline, and an underfunded policy can lapse.
What is a cap rate?
The maximum interest rate credited in a period. If the cap is 10% and the index gains 15%, you’re credited 10%. Carriers can change caps over time.
Can IUL be used for retirement income?
Some people use policy loans for supplemental income later in life. Loans reduce the death benefit, accrue interest and must be managed carefully to avoid a lapse and a possible tax bill.
Other ways to protect your family.
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Learn more →For OwnersBusiness Owner Insurance
Key person coverage, buy-sell funding and protection for what you’ve built.
Learn more →Let’s build something that outlasts us.
Protect your family or start your career. Either way, it begins with one conversation.
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