Indexed universal life
Permanent coverage with flexibility built in.
An IUL is permanent life insurance with flexible premiums, where interest is credited with reference to an index subject to a floor and a cap. IUL is a life insurance product, not an investment; policy charges and caps apply. We pair the carrier illustration with a licensed advisor who can help you evaluate it.
Availability and underwriting vary by state and carrier, and the carrier illustration is reviewed as part of the process before a policy is purchased or issued. Comparing options does not guarantee coverage.
Start with the need
An IUL may fit when...
- You want a permanent death benefit rather than coverage for a set term
- You can fund the policy consistently over a long horizon
- You want premium flexibility within the limits of the contract
- You are comfortable that caps, floors, and charges are set by the carrier and shown in the illustration
Mainly need the largest death benefit for the lowest premium? Term life usually serves that better.
Compare term life options onlineThe Mechanism, Drawn
What the floor and the cap actually do
In a down period, the index falls but the interest credited for that period stops at the contract floor instead of going negative. Policy charges are still deducted, so value can still decrease.
In a strong period, crediting stops at the cap or participation limit the carrier sets. You are not invested in the index and do not receive its dividends.
Illustrative mechanism only. This diagram shows no rate, cap, floor, value, or performance of any index, carrier, product, or policy. Caps, floors, and participation rates vary by carrier and can change within contract limits. Policy charges apply in all years. The only numbers to rely on are in a carrier illustration.
So what would consistent funding build?
If you are picturing a specific number, say five hundred dollars a month for thirty years, the honest answer is that it depends on the policy design, the carrier's caps and charges, and the years you actually get. Any website that prints that number for you is guessing.
The number that counts is in the carrier illustration, run for your age, health, and funding level, with the guaranteed columns next to the assumed ones. We prepare it at no cost, and a licensed advisor walks you through both columns.
Get Your Illustration StartedNo cost, no obligation. Review it before any decision.
How It Works
Start with a carrier illustration
Policy values depend on carrier assumptions and the way the policy is designed. Your advisor will use the carrier's illustration to make those details concrete.
Tell Us Who You Are Protecting
Your age, your state, and what the death benefit is meant to do. That is where every honest IUL conversation starts.
Build and Compare the Policy Design
The online journey gathers the carrier information needed to produce an illustration showing policy values under required assumptions.
You Get the Whole Picture
Review the death benefit, premium flexibility, charges, caps, floors, and illustration before accepting a policy. Licensed help is available when needed.
What It Is
The mechanism, without the sales pitch
Features, charges, caps and availability vary by carrier and by state. Your illustration and your contract govern.
Death Benefit First
The reason to own an IUL is the death benefit it pays your family. Everything else in the contract sits underneath that.
Flexible Premiums
Within the limits set by the contract, the premium can be adjusted over time. Underfunding a policy has consequences, and your advisor will walk through them.
Index-Linked Crediting
Interest is credited with reference to an index rather than paid at a fixed rate, subject to a floor and a cap that the carrier sets. You are not invested in the index and you do not own shares.
Charges Are Part of the Product
Cost of insurance and policy charges are deducted from the policy. They belong in the conversation from the start, not in a footnote.
What you will not find on this page
No projected values, no crediting percentages, no illustration of what an IUL “would have done”. Those numbers depend on carrier assumptions that change, and presenting them as marketing is how this product earned its reputation. IUL is a life insurance product, not an investment; policy charges and caps apply. If a simpler product covers what you actually need, compare term life options online.
Common questions
What to understand before you apply
Is an IUL an investment?
No. An indexed universal life policy is life insurance. Its primary purpose is the death benefit paid to your beneficiary. It is not a security, it is not a savings account, and money in the policy is subject to policy charges and the terms of the contract.
How is interest credited?
Interest is credited with reference to the performance of an index, subject to a floor and a cap or participation rate set by the carrier. You are not invested in the index and do not receive index dividends. The carrier can change caps and participation rates within the limits stated in the contract.
What does the floor actually do?
Most accumulation IUL products credit index interest with a floor of zero, meaning a drop in the index does not reduce the interest credited for that period. The floor and any caps are set by the carrier and shown in the illustration, and policy charges continue to apply either way.
What is an illustration, and can I rely on the numbers?
An illustration is a required document showing how a policy may perform under assumptions the carrier is permitted to use. Non-guaranteed values are assumptions, not predictions, and actual results will differ. Review the guaranteed columns with a licensed advisor before deciding.
What happens if I stop paying, or pay less?
Policy charges continue to be deducted. If the policy value cannot cover them, the policy can lapse and coverage can end, which may also have tax consequences. Funding level is central to whether an IUL performs as intended, so discuss it before you apply.
What are the charges?
IUL policies carry costs that may include cost of insurance, administrative charges, premium loads, and surrender charges in the early years. These are disclosed in the illustration and the policy, and they vary by carrier and product.
Who is an IUL usually not right for?
Someone whose main need is the largest death benefit for the lowest premium is usually better served by term life. IUL generally suits a longer time horizon and consistent funding. If you are unsure, compare it against term before deciding.
Talk it through
Request a licensed conversation
Tell us what you are weighing. A licensed agent will walk through how indexed universal life works for your situation and can prepare a carrier illustration, the document that shows guaranteed and non-guaranteed values under the carrier's required assumptions.
What happens after
The only coverage that comes with someone to file the claim
Billions in life insurance benefits go unclaimed, largely because families never find the paperwork. Buying the policy is the easy part. Being found, years later, by the people it was meant for is the part everyone else leaves to chance.
It lives in your Vault
Your free Vault keeps everything in one place: the policy itself, your beneficiaries, and the documents your family will be asked for.
We can file the claim
When the time comes, your family doesn't have to work out which carrier, which form, or which department. MedaSynq can file the claim for them.
A reduced fee for subscribers
Claim Assist costs nothing upfront and is only billed if the claim pays out, at a reduced service fee for Vault subscribers.
Licensed insurance agency
MedaSynq Insurance Services, NPN 22206860.
30+ carriers to compare
Including carriers rated A or better by AM Best.
A real person answers
Questions before you apply? Call (877) 346-6657.
AM Best financial strength ratings apply to individual insurance carriers, not to MedaSynq, and are shown where available during comparison.
Talk it through with a licensed advisor
Bring your questions, including the skeptical ones. You will get a carrier illustration, a plain explanation of the charges, and an honest answer about whether an IUL belongs in your plan at all.
Already have policies? Store them in Vault so your family can always find them.
Other coverage
Weighing an IUL against something simpler?
Every option below can be started online, with the same one set of questions.