Indexed Universal
Life Insurance
Life insurance that grows with you. An IUL policy gives your family a death benefit while building cash value tied to a market index. Upside potential with downside protection built in.
Understanding Indexed Universal Life Insurance
Life insurance with a built-in savings engine.
An indexed universal life insurance policy does two things at once. It provides a death benefit for your family and builds cash value over time. That cash value grows based on the performance of a market index, like the S&P 500, but your money is never directly invested in the market.
When the index goes up, your cash value grows up to a set cap. When the index goes down, a built-in floor (typically 0%) protects your balance. You participate in market gains without taking on market losses.
That cash value belongs to you. You can access it during your lifetime through policy loans or withdrawals, tax-advantaged. Many clients use it to supplement retirement income, cover a large expense, or leave a legacy.
Illustrative example. $300/mo premium. Actual results vary by carrier, age, and health.
The Mechanics
Simple protection. Real growth potential.
IUL policies use a straightforward mechanism to protect your savings while giving them room to grow.
The Floor
If the index drops in a given year, your cash value does not. Most policies carry a 0% floor. The worst outcome in a down year is no growth, not a loss.
The Cap
If the index gains 14% and your cap is 10%, you receive 10% growth. You give up some upside in exchange for a floor that protects your savings in down years.
Your Benefit
Your family receives the full death benefit regardless of cash value performance. Both protections run at the same time, for the life of the policy.
Is IUL Right for You?
Built for people planning further ahead.
IUL is not a quick fix. It is a long-term strategy for people who want coverage and growth working together.
Build a tax-advantaged asset outside your business
Access the cash value to cover unexpected business expenses without touching your day-to-day accounts. Your IUL grows independently from your business.
Another vehicle once your 401(k) and IRA are maxed out
An IUL gives you growth potential tied to a market index, with life insurance protection built in and no annual contribution limits imposed by the IRS.
Start early and let cash value compound for decades
Use it to fund education, a first home, or leave a meaningful legacy. Starting a policy early gives the cash value the most time to grow.
What You Get
What you get with an IUL policy.
Tax-advantaged cash value growth
Cash value grows tax-deferred inside the policy. Policy loans are generally tax-free, making this a powerful complement to traditional retirement accounts.
Death benefit for your family
Your beneficiaries receive a tax-free death benefit regardless of how the index performs. The coverage never goes away as long as the policy is funded.
Downside protection built in
A 0% floor on most policies means your indexed interest cannot go below zero in a down year. You keep what you have earned.
Flexible premium payments
Unlike whole life, IUL lets you adjust your premium within limits. Pay more in good years, less when cash flow is tight.
Access your cash value while living
Take a policy loan or withdrawal at any time. Many clients use their IUL as a living benefit during retirement or for large planned expenses.
Shopped across 25+ carriers
Every carrier structures their IUL differently. We compare caps, floors, fees, and performance across 25+ carriers to find the policy that fits your goals.
Pricing
Built around your goals, not a fixed price sheet.
IUL premiums are flexible by design. What you pay depends on your coverage amount, how aggressively you want to build cash value, and a few personal factors.
Age and Health
Younger, healthier applicants get better rates on the life insurance component. Coverage is available for adults from their 30s through their 60s.
Premium Amount
You decide how much to put in each month. Higher contributions build cash value faster. Your specialist will walk you through what makes sense for your budget.
Coverage Goals
Are you prioritizing the death benefit, the cash value, or a balance of both? Your goal shapes how the policy is structured and what it costs.
Carrier Selection
Cap rates, participation rates, and fee structures vary widely between carriers. We compare all of these across 25+ carriers to find your best fit.
For a detailed breakdown of IUL costs by age and death benefit, see our IUL Insurance Cost Guide.
The only way to know what an IUL looks like for your situation is to talk through your goals with a licensed specialist. It takes about 15 minutes and there is no obligation.
Or call us at (855) 380-9555
Why Asurgo
One conversation. Every option on the table.
IUL is complex. The carrier you choose, the cap rate, the fee structure: these details matter. We shop the entire market on your behalf and explain every option in plain language.
Independent, not captive
We work for you, not for any carrier. Our only job is finding the policy that fits your goals at the best available rate.
25+ carriers compared
Every IUL is structured differently. We compare caps, floors, participation rates, and fees across the full market so you get the right policy.
Licensed specialists, not order-takers
Our team has helped 1,500+ families across 48 states. We explain how the policy actually works before you sign anything.
Rated 4.9 out of 5 stars
Our clients stay because we stay honest. No pressure. No jargon. Just the right coverage for your family.
Deep Dive
Explore IUL Insurance
Pros and Cons
Honest assessment of IUL benefits, drawbacks, and what the critics get right and wrong.
IUL vs. Whole Life
Side-by-side comparison of premiums, cash value growth, flexibility, and guarantees.
IUL for Retirement
How to build tax-free retirement income with a max-funded IUL strategy.
IUL vs. 401(k) and Roth IRA
When IUL adds value beyond traditional retirement accounts. Income-tiered recommendations.
Cap Rates and Fees Explained
Understand caps, floors, participation rates, and the full IUL fee structure in plain English.
FAQ
Common questions about IUL.
Still have questions? Our licensed specialists are happy to explain anything in plain language.
What is indexed universal life insurance?
An IUL is a permanent life insurance policy with a death benefit and a cash value component. The cash value grows based on the performance of a market index, like the S&P 500, with a floor that protects you in down years.
Is my money actually in the stock market?
No. Your cash value is not directly invested in the market. The insurance carrier uses the index as a reference to calculate your growth. Your balance is not exposed to direct market losses.
What is the difference between IUL and whole life insurance?
Whole life has a fixed premium and a fixed, contractual growth rate on cash value. IUL has flexible premiums and cash value growth tied to a market index. IUL offers more potential upside but the growth rate is variable, not fixed.
What is the difference between IUL and term life insurance?
Term life covers you for a set number of years and builds no cash value. IUL is permanent coverage that stays active for life and accumulates cash value you can access while living. Term costs less in the short term. IUL does more over the long term.
Can I access the cash value before retirement?
Yes. You can take a policy loan or withdrawal at any time. Policy loans are generally not subject to income tax, which is one of the main benefits of an IUL.
What happens if I stop paying premiums?
If there is enough cash value in the policy, it can cover the cost of insurance and keep the policy active. If the cash value runs out, the policy lapses. Your specialist will help you structure the policy to stay funded.
Is IUL right for me?
IUL works best for people with a long time horizon who want life insurance coverage and a tax-advantaged savings vehicle beyond traditional retirement accounts. A 15-minute call with a licensed specialist is the fastest way to find out if it fits your situation.
Ready to see what an IUL can do for your family?
A licensed specialist will walk you through your options, compare carriers, and explain how the policy works in plain language. No pressure. No obligation.