One policy. A lifetime of tax-free growth, income, and protection.
An IUL is one of the most powerful financial vehicles available to everyday families. Cash value grows tax-deferred under IRC §7702, income comes out tax-free, and a built-in LTC rider protects you if you ever need care.
IUL Tax-Free Retirement Income Calculator
Get an instant estimate of your future cash value, tax-free retirement income, and death benefit.
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We'll use the inputs above (35 yrs old, retiring at 65, $500/mo, preferred) to prepare your real, carrier-specific numbers. No obligation.
Illustrative estimate only. Assumes ~6% net crediting, MEC-compliant funding, and ~5% policy-loan distributions. Actual results depend on the carrier, caps, fees, health underwriting, and AG 49-A compliant illustration. Not a guarantee of future performance.
Cash value loans accrue interest and reduce the death benefit if not repaid. A policy that becomes a Modified Endowment Contract (MEC) under IRC §7702A loses key tax benefits permanently — distributions may be taxed as ordinary income and subject to a 10% penalty if taken before age 59½. For IRS guidance on life insurance tax treatment, see Publication 525 and IRS FAQs on life insurance proceeds. Consult a licensed tax professional regarding your personal tax situation before purchasing any life insurance product.
Market-linked growth
Cash value follows an index like the S&P 500 — you participate in the upside.
0% floor protection
When the market drops, your cash value doesn't lose value. Worst-case is break-even.
Tax-free income
Take retirement income through policy loans — not counted as taxable income by the IRS.
Long-Term Care rider
Access your death benefit while alive if you need home health care, assisted living, or memory care.
In plain English.
- You pay premiums into the policy, and a portion goes into a cash value account.
- That cash value is tied to a stock market index — so it grows when the market goes up.
- If the market goes down, your money doesn't lose value — most IUL policies have a 0% floor.
- Over time the cash value compounds — you earn interest on your interest, year after year.
"Imagine planting a tree that only grows taller — it never shrinks, even during a storm. That's how an IUL treats your money."
Start at birth, change a life.
When an IUL is opened on a newborn, several advantages lock in immediately: the lowest possible insurance costs, decades of tax-deferred compounding, guaranteed insurability for life, and the tax advantages of IRC §7702.
A parent or grandparent contributing as little as $100–$300/month into an IUL for a newborn could realistically build a six- or seven-figure tax-free retirement fund by the time that child is in their 60s. No 401(k), no IRA, no brokerage offers the same combination of tax-free growth, tax-free income, and built-in protection.
| Feature | IUL from Birth | 401(k) / IRA | Traditional LTC |
|---|---|---|---|
| Tax-free growth | ✓ Yes | Tax-deferred only | — |
| Tax-free retirement income | ✓ Via loans | Taxed as income | — |
| Required minimum distributions | ✓ None | Required at 73 | — |
| Contribution limits | ✓ None | Annual limits | — |
| LTC coverage | ✓ Built-in rider | — | ✓ Yes |
| Death benefit for heirs | ✓ Tax-free | Taxed | — |
| Market loss protection | ✓ 0% floor | Full exposure | — |
| Cash value if LTC unused | ✓ Remains intact | — | Lost |
Long-Term Care, built right in.
A Long-Term Care Rider lets you access part of your death benefit while you're alive if you're unable to perform 2 of 6 Activities of Daily Living, or suffer cognitive impairment like dementia. It covers home health care, adult day care, assisted living, and nursing/memory care.
Never need care
Full death benefit pays out to your family, income-tax free.
Do need care
The rider covers your care costs — preserving your other savings.
Either way
Your cash value continues growing throughout, regardless of the path.
Important Information About IUL Policies
Indexed Universal Life insurance is a permanent life insurance product with a cash value component tied to a market index. It is not an investment, security, or savings account. Policy performance depends on credited interest rates, cap rates, participation rates, policy charges, and the claims-paying ability of the issuing insurance carrier.
Tax considerations: Policy loans are generally income-tax free as long as the policy remains in force and is not classified as a Modified Endowment Contract (MEC) under IRC §7702A. If a policy becomes a MEC, distributions may be taxed as ordinary income and subject to a 10% penalty if taken before age 59½. Cash value loans accrue interest and reduce the death benefit if not repaid. Policy tax treatment is governed by IRC §7702. See also IRS Publication 525 (Taxable and Nontaxable Income) and IRS Publication 554 (Tax Guide for Seniors) for general guidance on life insurance proceeds and retirement income.
Illustrations: All projections, calculators, and illustrations on this page are hypothetical estimates only and not guarantees of future performance. Actual results will vary based on carrier caps, fees, market conditions, health underwriting, and MEC compliance. Illustrations are subject to Actuarial Guideline 49-A.
Consult a professional: Consult a licensed tax professional regarding your personal tax situation and a licensed attorney regarding estate planning matters before purchasing any life insurance product.
See what your IUL could do.
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