Indexed universal life insurance

Balancing risk and cash value growth

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

Minimum and maximum crediting rates act as guardrails, which make indexed universal life less risky than variable universal life insurance, while potentially producing greater returns 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 universal life insurance provides insurance on two lives, and pays a death benefit after both insured people 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.

Ready to purchase life insurance?

Call Securian Financial at 1-877-491-5271 or contact us online to talk about your insurance needs.     

Discuss your needs

Life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods. 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.

This information is a general discussion of the relevant federal tax laws provided to promote ideas that may benefit a taxpayer. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. Taxpayers should seek the advice of their own advisors regarding any tax and legal issues specific to their situation.

Guarantees are based on the claims-paying ability of the issuing insurance company. Please keep in mind that the primary reason to purchase a life insurance product is the death benefit.

Please note an investor cannot directly invest in an index.

DOFU 12-2017