Indexed Universal Life
Market growth with zero downside
Indexed Universal Life (IUL) is permanent life insurance with a cash value account that earns interest based on the performance of a market index, such as the S&P 500. When the market rises, your cash value is credited with gains (up to a cap). When the market falls, a 0% floor protects you — your cash value doesn't lose a penny to the downturn. Add tax-free access through policy loans, and IUL becomes a powerful tax-free retirement income strategy.
- Market-linked growth potential
- 0% floor — never lose cash value to a down market
- Potential tax-free retirement income via policy loans
- Flexible premiums and adjustable death benefit
Growth when markets rise, protection when they fall
Your IUL cash value earns interest credits tied to an index's performance over each crediting period. In up years you capture gains up to the policy's cap or participation rate. In down years the 0% floor means your credited interest simply can't go negative — the account value you've built is shielded from market losses. Over a long horizon, avoiding the down years can matter as much as capturing the up years.
The tax-advantaged retirement angle
Cash value grows tax-deferred, and properly structured policy loans can provide income in retirement that is generally income-tax-free. There are no IRS contribution limits like a 401(k) or IRA, no early-withdrawal penalties at 59½ rules to plan around, and the death benefit passes to your family tax-free. For high earners who've maxed out traditional accounts — or anyone who wants tax diversification — IUL can be a compelling complement to a retirement plan.
Design matters — get it structured right
IUL is the most design-sensitive product in life insurance. Caps, participation rates, loan types, and funding levels dramatically change outcomes. A well-designed, properly funded policy behaves very differently from a poorly designed one. May designs IUL policies for maximum cash accumulation, compares illustrations across multiple A-rated carriers, and explains every moving part in plain English before you commit.
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