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Indexed universal life (IUL) insurance in Charlotte, NC
An IUL is permanent life insurance with cash value that can grow based on a stock market index, with limits on both the upside and the downside.
What an IUL is
Indexed universal life is permanent coverage with flexible premiums. Part of what you pay covers the cost of insurance and policy charges. The rest goes into cash value.
How the cash value grows
The carrier credits interest to your cash value based on the performance of an index, such as the S&P 500. Your money is not invested directly in the market.
- Floor: a minimum crediting rate, often 0%, so a down year in the index does not by itself reduce your credited value.
- Cap or participation rate: a limit on how much of the index gain is credited to you in an up year.
Policy charges are still deducted every year, including years when the credited interest is zero. Caps, participation rates and charges are set by the carrier and can change.
Who it usually fits
- People who want lifetime coverage and can fund the policy consistently for many years
- People who want cash value growth potential with a floor
- People who have already covered basic needs with simpler insurance
What to understand before you buy
An IUL is more complex than term or whole life. If it is underfunded, or if loans grow too large, the policy can lapse. The illustrations carriers provide show projections, not guarantees. A good conversation about IUL includes the guaranteed columns, not just the projected ones.
Vincent will tell you plainly if a simpler policy would do the job.
This page is general information. What you can get, and what it costs, depends on the carrier and on underwriting. Call 704-495-2552 for options based on your situation.
Questions about indexed universal life
Can I lose money in an IUL?
The floor protects credited interest from index losses, but policy charges are deducted regardless. If premiums are too low or loans too large, cash value can fall and the policy can lapse.
Is an IUL an investment?
No. It is a life insurance policy. Cash value growth is linked to an index but the money is not invested in the market, and the policy should be bought first for the death benefit.
How is IUL different from whole life?
Whole life has fixed premiums and guaranteed cash value growth. IUL has flexible premiums and growth that depends on index performance within a cap and floor, with fewer guarantees.
Other kinds of coverage
Not sure this is the right fit? Most people compare two or three options before deciding.
Ready to see your options?
One call covers every carrier we work with. It takes about fifteen minutes.