What it is
How indexed universal life works
An indexed universal life policy is permanent coverage that never expires as long as it is funded, plus a cash value component that grows based on the performance of a market index such as the S&P 500. Your money is not invested directly in the market, so the floor keeps a down year from erasing your balance.
- Permanent life insurance that lasts your whole life
- Cash value that grows based on a market index
- A floor, often zero percent, that protects against market loss
- A cap that limits how much of an up year is credited
- Flexible premiums and access to the cash value while living
The tradeoff is the cap: in exchange for the downside floor, you give up part of a strong year. An IUL only works when it is funded properly, which is the part Earl makes sure you understand before you sign.
How it works
How Earl approaches an IUL
Confirm it fits your goal
As a Certified Financial Fiduciary, Earl first checks whether an IUL is even the right tool for what you are trying to do.
Explain the moving parts
He walks through the floor, the cap and the crediting method so you know how the cash value actually grows.
Fund it correctly
An IUL depends on being funded properly, so Earl builds the premium plan around a policy that stays healthy.
Review it over time
Earl offers a free annual review so the policy keeps performing the way it was designed to.
Questions
Indexed Universal Life questions
Is money in an IUL invested directly in the stock market?
What is the catch with an indexed universal life policy?
Can I access the cash value while I am alive?
Understand indexed universal life with Earl Doucette
Earl walks through how the index crediting, the floor and the cap actually work so you know what an IUL can and cannot do before you buy.