Our site uses cookies to improve your experience. By continuing, you agree to the use of cookies and our privacy policy.
Request My Free Quote
Protection with growth potential
Request My Free Quote

IUL QUOTE

Permanent Protection With Growth Potential

Help protect your family while building cash value with market-linked potential.

By submitting your information, you agree that Western & Southern Life may contact you at the number provided, possibly using automated technology or a prerecorded voice, to market products and services. You understand submitting your information is not required to make a purchase. Data rates may apply. You may revoke this consent by contacting 877-367-9734. You have read, and agree to, the Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

What Is an Indexed Universal Life Insurance Policy?

An indexed universal life insurance (IUL) policy is a type of permanent life insurance that provides lifelong death benefit protection while allowing your cash value to grow based on stock market index performance. Your money is not invested in the market; interest is credited based on index changes, subject to caps and floors. Key benefits include:

Lifelong Protection

Permanent coverage death benefit that financially protects your loved ones

Growth Potential

Opportunity for cash value growth linked to stock market index performance

Flexible Premiums

Ability to adjust payments to fit your financial situation over time

Downside Protection

A “floor” can help protect your cash value from market losses

Access to Cash

Option for policy loans or withdrawals from cash value (these should only be taken in emergency situations if needed)1

Tax Advantages

Cash value may grow tax-deferred; withdrawals are generally tax-free

Portfolio Diversification

Can offer a different risk profile within a broader financial portfolio compared to traditional stocks and bonds investments

Estate Planning Benefits

May be structured to provide a tax-efficient way to transfer wealth to the next generation

Financial Flexibility

May fit various financial strategies such as retirement planning, college savings, or business succession planning, due to its flexibility and growth potential
Couple researching IUL policies on a tablet

How an IUL Policy Works

An IUL policy combines lifelong insurance protection with a cash value feature tied to the performance of a stock index.

  1. Pay Premiums: Based on your coverage, money goes towards insurance costs and cash value. This cost is not fixed and typically increases as you age.
  2. Costs Are Covered: Insurer deducts the cost of insurance and any applicable fees or additional charges from your premium payment.
  3. Index Allocation: Remaining premium goes into your cash value account, which earns interest using a linked stock market index.
  4. Cash Value Grows: Your cash value grows tax deferred. Typically, growth is limited by a cap rate, but also protected from losses by a floor, which is often 0%.
  5. Maintain Coverage: Keep the policy in good standing with sufficient funding and the death benefit will be paid to your beneficiaries.

Want a deeper dive? Read our full guide:  Understanding Indexed Universal Life Insurance

Why Choose Western & Southern?

95 Comdex Ranking

Financial Strength

High ratings reflect stability you can count on
established 1888

Trusted for Over 135 Years

Helping families protect their future since 1888

Serving Millions Nationwide

Trusted by families across the 50 states

Is IUL Right for You?

IUL insurance works best for people who want permanent life insurance with growth potential and have the financial flexibility to handle premium variations.
Couple researching IUL policies

High-Income Earners

Already maxing out 401(k)s and IRAs? IUL gives you another way to keep building wealth while adding protection for loved ones.
Business owners discussing IUL options

Business Owners

When income is unpredictable, IUL offers flexible premium payments, protects your business, and helps you save for the future on your terms.
Grandmother protecting her grandchild with IUL

Legacy Builders

If leaving more to your loved ones matters, IUL helps you pass on wealth efficiently, while covering estate costs.
Couple protected with IUL flexibility

Pre-Retirees Seeking Flexibility

As retirement approaches, IUL gives you control over when and how to use your money with the potential for tax advantages and growth.

Not sure if IUL is right for you? Explore all types of Universal Life Insurance.

Frequently Asked Questions About IUL Insurance

How do I get an IUL insurance quote, and how long does it take?
Getting an IUL quote is simple. Provide basic details such as your age, health, and desired coverage, and we’ll generate a personalized estimate. Many IUL insurance quotes are available the same day, helping you compare options quickly. Request your free IUL quote today to get started.

How does an IUL policy grow cash value?
An indexed universal life insurance policy credits interest based on a stock market index. Growth is capped in strong years and protected by a floor (often 0%) in down years. This gives you growth potential with built-in downside protection.

Can I buy an IUL with flexible premiums?
Yes. One of the main advantages of IUL insurance is flexibility. You can adjust premiums and even the death benefit within policy limits. Be aware that underfunding the policy may reduce cash value and increase the risk of lapse, so consistent funding matters.

What fees or charges come with an IUL policy?
IUL policies include insurance charges, administrative fees, and the cost of any riders you choose. These are deducted from your cash value. Your IUL insurance quote or policy illustration will provide a clear breakdown of all expected costs.

How do loans and withdrawals work in an IUL policy?
Once your cash value builds, you can borrow or withdraw funds. Loans are typically tax-advantaged, but if not repaid they reduce your policy’s death benefit and cash value. Withdrawals are also possible but may trigger taxes and lower long-term growth. See how this works for you with a personalized IUL insurance quote.

What makes an IUL different from term or whole life insurance?
An IUL offers permanent coverage like whole life but with flexible premiums and market-linked cash value growth. Unlike term life, which is temporary and has no cash value, an IUL can serve as lifelong protection while also building savings for future needs.
IMPORTANT DISCLOSURES

1 Withdrawing or taking a loan from your policy may reduce its cash value, death benefit, and have tax implications.

These policies and benefits may not be available in all states, and benefits may vary by state.

Payment of benefits under the life insurance policy is the obligation of, and is guaranteed by, the issuing company. Guarantees are based on the claims-paying ability of the issuer. Products are backed by the full financial strength of the issuing company.

Life insurance policies contain certain exclusions, limitations, reductions of benefits and terms for keeping them in force. Please contact a financial representative for complete details.

Life insurance products are not bank products, are not a deposit, are not insured by the FDIC, nor any other federal entity, have no bank guarantee, and may lose value.