Indexed Universal Life Insurance: Lifetime Coverage With Flexibility

Indexed universal life (IUL) offers premium and coverage flexibility with the potential for more cash value growth because it's linked to the performance of a stock market index. You can designate some or all of your policy's cash value to earn index credits based on market performance up to a cap rate. Those index credits will never be negative, even if the market goes down. 

Other policy benefits include: 

• Two different different death benefit options to choose from: 
  • Level: the death benefit only is received upon the insured’s death
  • Increasing - the death benefit includes the face amount plus the cash value at the time of death
• No Lapse Guarantee: This  remains in force during the identified period providing certain requirements are met. The No Lapse Guarantee period is 15 years for ages 0-65 and varies for ages 66-75.
• Terminal Illness and Chronic Illness Accelerated Death Benefits: If the insured becomes chronically or terminally ill, the policy’s accelerated benefits can help pay for expenses related to the chronic or terminal illness by advancing a portion of the death benefit to the policy owner. This would reduce the amount the beneficiaries would receive. Chronic illness benefits are available for permanent life policies only. Terminal illness benefits are available for term and permanent life policies.¹

There are no additional costs for these features.

Building value in an Indexed Universal Life insurance policy starts with your monthly premium payment. Then you subtract policy charges and your insurance policy and rider charges from the account value. Finally, you credit (or add) any interest earned in the fixed accounts and any index growth credits earned.

The index interest crediting rates you'll receive are:

• Linked to the performance of a stock market index
• Never below the floor rate – set at 0% to assure you cannot lose value
• Limited by the cap rates set in the policy
• Based on participation rates at the time a segment is created

You should choose the life insurance option that best meets your needs. Here’s a snapshot of what an indexed universal life policy offers:

• Flexible payment options
• Access to the policy's cash value
• Lifetime coverage, if the policy is adequately funded
• Several add-on features to help customize your policy

Want to compare life insurance policy types? See them side-by-side.  

You might have heard about insurance “riders” and wondered what they are. They’re simply add-ons you can include with your base insurance policy. It’s kind of like adding a sports package to your basic cable subscription. Here are the features you can add to your indexed universal life policy for an extra cost.

Your representative will help you choose the right policy type, amount and payment option. They’ll also walk you through the application process, which includes filling out a few forms, answering some health questions and possibly being asked to complete a basic medical exam.