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Indexed universal life

Balancing risk and cash value growth

Indexed universal life insurance offers cash value growth potential that is tied to the movement of an underlying index but does not participate in the market.

Minimum and maximum interest crediting limits act as guardrails, which make indexed universal life less risky than variable universal life insurance, while potentially producing greater interest crediting than fixed universal life insurance.

Indexed universal life benefits

  • Lifetime protection for your loved ones
  • Flexible premiums allow you to adjust your payments, or you can choose a fixed, consistent amount
  • Ability to adjust your benefit amount to align with your changing life
  • Ability to build tax-deferred cash value growth based on indexed crediting potential tied to performance of an underlying index
  • Minimum and maximum crediting rates – a "cap" and a "floor" – to provide stability
  • Greater cash value potential than fixed universal life

Indexed universal life considerations

  • If you do not pay enough premium, the policy may lapse
  • Loans and withdrawals will impact both the death benefit and policy surrender value and may create an adverse tax result in the event of a lapse or policy surrender
  • While minimum crediting floors provide stability, maximum crediting caps also restrict cash value accumulation potential
  • Growth caps and participation rates can change over time as economic conditions vary
  • Should the index have 0% growth or decline, policy owners bear the risk that no Index credit will be given to the account
  • Adjusting benefit amounts may require new underwriting

Survivorship option

Survivorship indexed universal life insurance provides insurance on two lives, and pays a death benefit after both insureds have passed away.

A survivorship policy may be right for you if you have an estate with significant assets, own a family business or want to provide for the continued care for a loved one with special needs.


How do I purchase life insurance?

Our insurance products can be purchased through a financial professional or may be offered through your employer, financial institution or association.

To see how much insurance you may need, use our easy-to-follow calculator. 

Start calculating

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Life insurance products contain fees, such as mortality and expense charges (which may increase over time), and may contain restrictions, such as surrender periods. Policyholders could lose money in these products. 

The Indexed Universal Life Series is designed first and foremost to provide life insurance protection. While the interest crediting options are attractive for cash accumulation, the product should always be promoted to first meet the death benefit needs of families and businesses with cash accumulation as a secondary benefit. One cannot invest directly in an index.

You should consult your tax advisor regarding your own tax situation. 

Guarantees are based on the claims-paying ability of the issuing insurance company. 

Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender, and will reduce both the surrender value and death benefit. Withdrawals may be subject to taxation within the first fifteen years of the contract. You should consult your tax advisor when considering taking a policy loan or withdrawal. 

DOFU 3-2022