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Joyner Insurance Group
We help educate you about how life insurance works — and why it matters.
What is an IUL?
An Indexed Universal Life (IUL) policy offers a powerful combination of lifelong protection, tax-advantaged cash value growth, and flexible premiums—all in one smart financial strategy. Your cash value has the potential to grow based on market index performance, like the S&P 500®, while being protected from market downturns through built-in downside protection. That means you can participate in market upside without risking losses when the market drops. With long-standing financial strength and customizable policy options, an IUL can help protect your family, supplement retirement income, and create a flexible financial safety net that adapts as your life and goals change.
Benefits of a IUL Policy
A Indexed Universal Life policy offers tax-advantaged cash value growth potential, flexible premiums, and lifelong death benefit protection. Policyholders can benefit from market-linked growth with built-in downside protection, meaning cash value is shielded from market losses while still capturing upside potential. Additional benefits include access to cash value through policy loans, the ability to adjust death benefits and premiums as life changes, and optional riders that can enhance protection for chronic illness, critical illness, or income needs.
Who a IUL Is Best For
A IUL is ideal for individuals and families seeking permanent life insurance with growth potential beyond traditional whole life, especially those with long-term financial goals. It’s well-suited for higher-income earners, business owners, and professionals looking for tax-advantaged strategies to supplement retirement income, protect loved ones, or leave a legacy. It can also be a strong fit for people who want flexibility, market participation without direct market risk, and a policy that can adapt as their financial needs evolve.
IUL vs Term Life and Whole Life
Coverage Duration:
IUL and Whole Life both provide lifelong protection, while Term Life covers you only for a set number of years.
Cash Value:
IUL cash value grows based on index performance (with protection from negative market returns), Whole Life builds guaranteed cash value with possible dividends, and Term Life does not build cash value.
Cost:
Term Life is generally the least expensive, making it a good choice for temporary needs. IUL provides more flexibility than Whole Life, which typically has higher, steady premiums.
Risk/Reward:
IUL offers more growth opportunity than Whole Life but with less predictability. Whole Life prioritizes stability and guarantees. Term Life focuses purely on affordable death benefit protection.
How does a IUL work?
A IUL provides permanent life insurance coverage while building cash value tied to a market index, such as the S&P 500®. Your cash value can grow when the index performs well, but it’s protected from market losses through a guaranteed floor, helping reduce downside risk.
Is the cash value in a IUL guaranteed?
While the life insurance protection is guaranteed as long as the policy is properly funded, cash value growth is not guaranteed and depends on index performance, caps, and participation rates. However, your cash value is protected from negative market returns.
What can I use a IUL for?
A IUL can be used for lifelong death benefit protection, tax-advantaged cash accumulation, retirement income supplementation, estate planning, or legacy planning—making it a flexible solution for both protection and long-term financial strategy.