When you pay your premiums, a portion covers your cost of insurance and policy fees; the remainder builds cash value. You choose whether that cash value credits a fixed rate or tracks an index’s gains up to a cap, minus any participation rate. If the index climbs, you capture a percentage of those gains; if it falls, you still keep at least the minimum guaranteed return. Over time, your cash value can be used to pay future premiums, taken as tax-advantaged loans, or left to grow for retirement income.

• Higher Return Potential
  Indexed strategies let you benefit from market upside subject to caps and participation rates without risking your principal. Your insurer uses options strategies to credit your cash value, offering returns that often outpace fixed UL policies.
• Greater Flexibility
  You control how aggressive your policy is: adjust your death benefit, vary your premium payments (within policy limits), and add riders like long-term care or chronic illness coverage as your needs evolve.
• Tax-Free Capital Gains
  Your policy’s cash-value growth is tax-deferred, and loans or withdrawals (up to your basis) typically avoid income taxes. This makes IULs a powerful way to access funds later without tapping your 401(k) or IRA prematurely.
• No Social Security Impact
  Income from IUL withdrawals and loans doesn’t count toward Social Security’s earnings limits, so you can draw policy cash value in retirement without risking benefit reductions.
• Death Benefit
  When you pass, your beneficiaries receive a tax-free death benefit that can cover final expenses, replace lost income, pay off debts, or fund your estate-planning goals ensuring your family’s security.