Life insurance first, with cash value that can grow
See if an indexed universal life policy fits your plan
Free to useNo obligationLicensed agents only
An IUL is permanent life insurance whose cash value earns interest based on a market index, within limits. Answer a few questions and we'll match you, free, with a licensed agent who can show you real illustrations and the trade-offs.
- Free matching service, not an insurer
- Talk to a licensed agent before you decide
- No obligation to buy anything
Why people look at an IUL
Permanent coverage with cash value
Unlike term insurance, an IUL is built to last your whole life as long as it stays funded. Part of each premium goes into cash value you can use later.
Tax treatment set by the tax code
Death benefits are generally income-tax-free under IRC §101(a). Policy loans are generally not taxed while the policy stays in force and isn't a modified endowment contract. Ask a tax professional about your case.
Living benefits riders
Many IUL policies offer riders that let you use part of the death benefit early after a qualifying chronic, critical or terminal illness. Riders, terms and costs vary by carrier and state.
A supplement after your employer match
Some people fund an IUL after they've taken the full 401(k) match. It isn't a replacement for a retirement plan, but it can add permanent coverage alongside one.
- 01
High earners past the Roth IRA limits
The IRS limits Roth IRA contributions based on filing status and income. If your income limits what you can put into a Roth, an agent can show how an IUL's tax treatment compares.
- 02
Business owners
Owners often want permanent coverage for their family, a key person or a buy-sell plan. An agent can explain how IUL fits next to term and your business's retirement plan.
- 03
Parents building a legacy
If you want to leave money to children or grandchildren no matter when you die, permanent coverage can do that, as long as the policy stays funded.
- 04
Comparing IUL vs. a 401(k)
They do different jobs. A 401(k) is a retirement account; an IUL is life insurance with cash value. An agent can put real numbers from both side by side.
Indexed universal life (IUL), explained honestly
IUL vs. Roth IRA: Limits, Taxes and Flexibility Compared
A Roth IRA is usually the simpler, lower-cost place to start: for 2026 you can contribute up to $7,500 ($8,600 at 50 or older) if your income is under the IRS limits, and qualified withdrawals are tax-free. An IUL has no IRS contribution cap or income limit, but it is life insurance first, costs more and needs careful funding to avoid lapsing.
Editorial Team · September 30, 2026
IUL Pros and Cons: A Balanced Look at Indexed Universal Life
Indexed universal life (IUL) offers lifelong coverage, flexible premiums and cash value growth tied to a stock index with a floor, usually 0%, against index losses. The trade-offs are caps on gains, charges that rise with age, rates the insurer can lower, and a real risk of lapse if the policy is underfunded or loans grow too large.
Editorial Team · September 30, 2026
IUL vs. 401(k): Which Comes First for Retirement Savings?
For most workers, a 401(k) with an employer match should come before an IUL, because the match is extra money and the 2026 deferral limit is $24,500. An IUL is life insurance with cash value, so it fits best as a supplement for people who need lifelong coverage and have already captured their match.
Editorial Team · September 30, 2026
IUL for Retirement Income: Loans, Lapse Risk and MEC Rules
IUL retirement income usually comes from withdrawing up to what you paid in and then borrowing against the cash value, which is generally not taxed while the policy stays in force and is not a modified endowment contract. The risk is that loan interest and policy charges keep growing, and if they use up the cash value, the policy can lapse and leave you with a tax bill and no coverage.
Editorial Team · September 30, 2026
Is IUL a Good Investment? What Regulators Want You to Know
Indexed universal life (IUL) is best judged as life insurance, not as an investment: it is generally not considered a security, its growth is capped, and its charges can rise every year. It may fit people who need lifelong coverage, have maxed out cheaper savings options and can fund the policy well for decades.
Editorial Team · September 30, 2026
How IUL Caps and Participation Rates Work, With Examples
An IUL policy credits interest by taking the index's change for a period, applying the participation rate and any spread, then limiting the result to no more than the cap and no less than the floor, usually 0%. Because caps and participation rates can change and monthly charges still come out, the credited rate is only part of what happens to your cash value.
Editorial Team · September 30, 2026
Common questions
What is indexed universal life insurance?
An IUL is permanent life insurance with a cash value account. Instead of buying stocks, the insurer credits interest based on how a market index performs. A cap limits how much you can earn in a good year, a floor (often 0%) keeps a bad index year from causing a loss in credited interest, and a participation rate sets what share of the index gain you get.
Is an IUL an investment?
No. An IUL is life insurance first. Your money is not invested in the market, and you don't own index shares or receive dividends. The cash value only earns credited interest under the policy's formula. If your main goal is investing for retirement, a 401(k) or IRA usually comes first, and an IUL may add permanent coverage alongside it.
Are IUL illustrations guaranteed?
No. An illustration is a projection that assumes a steady crediting rate year after year. Real index returns vary, and insurers can change caps, participation rates and some charges within the limits in your contract. Ask to see the guaranteed column and a lower-rate scenario, not just the illustrated one, so you know how the policy behaves if returns disappoint.
What fees and charges does an IUL have?
Every month the policy deducts a cost of insurance, which rises as you age, plus administrative fees, premium charges and the cost of any riders. These charges come out of your cash value. In the early years they can take most of your premium, which is why cash value usually grows slowly at first and why an IUL works best when funded for many years.
Can an IUL lapse?
Yes. If the cash value can't cover the monthly charges, the policy can lapse and coverage ends. This risk grows if you pay less than planned, returns come in low, or you borrow heavily. A lapse with a loan outstanding can also create a tax bill on the gain. Review your policy each year and ask your agent how much premium keeps it safely in force.
What are surrender charges?
A surrender charge is a fee for cancelling the policy or taking out too much cash value during its early years. The schedule is in your contract, and the charge usually shrinks each year until it disappears. If you might need the money soon or can't keep paying premiums for many years, an IUL may not be the right fit, and term coverage could be a better choice.
How are IUL policy loans taxed?
Policy loans are generally not taxable income as long as the policy stays in force and is not a modified endowment contract (MEC) under IRC §7702A. Loans charge interest and reduce the death benefit until repaid. If the policy lapses or is surrendered with a loan outstanding, the gain can become taxable. Tax rules depend on your situation, so check with a tax professional.
How much does it cost to get matched?
Nothing. We are a free matching service, not an insurer or agency. You answer a few questions, and a licensed agent reaches out to walk you through IUL illustrations and alternatives like term. Premiums depend on your age, health, the coverage amount and how you fund the policy, and you are never obligated to buy.