The Quality of Life policy.
Term life pays your family if you die. Indexed Universal Life (IUL) does that too, and then does three things term cannot: it builds cash value with a floor against market losses, it lets you draw on that value tax-free in retirement, and its living benefits pay you while you are alive if you face a critical, chronic or terminal illness.
Live through an illness without financial ruin.
A serious diagnosis usually comes with two bills: the medical costs insurance does not cover, and the income that stops while you recover. Living benefits let you accelerate a portion of the death benefit, in cash, while you are alive, to self-fund care, long-term care or simply the mortgage. The retirement accounts stay untouched.
Market-linked growth, no market losses.
- Premiums above the cost of insurance go into an indexed account credited on the movement of an index such as the S&P 500.
- In a down year the credit is 0%, never negative. Gains already credited are locked in.
- Growth is tax-deferred, and you can access the cash value through policy loans that are not taxed as income when the policy is structured correctly.
- The death benefit passes to your beneficiaries income-tax-free.
Compare the strategy
See how a properly funded IUL stacks up against the alternatives over a full retirement horizon.
How an IUL strategy comparesNot everyone. These people, usually.
Ten or more years from retirement
Time lets the cash value compound and lets a properly funded policy carry itself later.
Already maxing a 401(k) or 403(b)
IUL adds a tax-free bucket alongside the taxable one, so retirement income can be drawn from both.
Business owners and key executives
Key-person coverage, executive bonus plans and buy-sell funding, with living benefits attached.
Families protecting children or grandchildren
A policy started young locks in insurability and decades of growth at the lowest cost.
An IUL only works if it is funded and designed correctly.
- The cost of insurance rises with age. A policy that is underfunded in the early years can lapse later.
- Caps and participation rates are set by the carrier and can change.
- Policy loans reduce the death benefit and, if the policy lapses with a loan outstanding, can create a tax bill.
- Illustrated returns are projections, not guarantees. We show you the guaranteed column, not just the optimistic one.
We design every IUL from a written needs analysis and walk you through the illustration line by line, including the death benefit option and how the cost of insurance behaves over time.
See what a Quality of Life policy would look like for you.
A free 30-minute discussion on Zoom or in person.