IUL / Cash Value Life
Tax-Free. Market-Protected.
For Life.
Indexed Universal Life builds cash value tied to market performance — with a guaranteed 0% floor. Access it tax-free in retirement. Leave the rest to your family as a death benefit. It's income, protection, and legacy in one vehicle.
0%
Market Floor
Your cash value never decreases due to market losses
0%
Tax on Distributions
Policy loans are not taxable income
None
RMDs Required
No required minimum distributions — ever
Plain English
What is an IUL?
Indexed Universal Life (IUL) is a type of permanent life insurance that builds cash value over time. Instead of a fixed interest rate, your cash value is credited based on the performance of a market index — like the S&P 500 — subject to a floor and a cap.
The floor is typically 0%. In a bad market year, you receive 0% interest — not a loss. In a good year, you receive credited interest up to a cap or participation rate. Over time, this asymmetric growth compounds into a substantial cash value pool.
That cash value can be accessed in retirement via tax-free policy loans. The remaining death benefit transfers to your heirs income- tax-free. One vehicle — income, protection, and legacy.
How IUL works — step by step
- 1
You fund the policy
Premium payments go into the policy, net of insurance costs. Flexible funding — monthly, annually, or lump sum.
- 2
Cash value grows tax-deferred
Interest is credited annually based on index performance, subject to your 0% floor and cap. No market losses — ever.
- 3
Access cash tax-free in retirement
Take policy loans in retirement. Loans are not income — they don't appear on your tax return or affect Social Security taxation.
- 4
Death benefit transfers to heirs
The remaining death benefit passes to your beneficiaries income-tax-free, completing the legacy leg of your stool.
Part of the Three-Legged Stool
This is Leg Three.
IUL completes the stool. Leg One gives you guaranteed income. Leg Two protects your assets from care costs. Leg Three builds tax-free wealth to supplement your income and transfer to the next generation. Together, they create a retirement strategy that covers every major risk.
Is This Right for You?
An IUL might be the right fit if...
You want tax-free retirement income
Your 401(k) and IRA will be taxed at withdrawal. IUL distributions are structured as policy loans — completely off your tax return, keeping your effective tax rate lower in retirement.
You want to leave a legacy
IUL includes a guaranteed death benefit that passes to your beneficiaries income-tax-free. It's one of the most efficient wealth transfer vehicles available.
You're starting early and want compounding to work
The earlier you start, the more decades of tax-deferred, floor-protected compounding you get. A 35-year-old funding an IUL today can create a substantial tax-free income stream by retirement.
Common Questions
IUL FAQ
Start building tax-free wealth today.
IUL works best when started early and funded consistently. In a free strategy session, we'll run an illustration specific to your age, health, and goals — so you can see exactly what the numbers look like for your situation.
Insurance products offered through licensed agents. This content is for educational purposes only and does not constitute financial advice.