You can borrow against your IUL cash value through policy loans, which are tax-free as long as the policy remains in force. Most policies allow you to borrow up to 90% of your cash value at competitive loan rates.
One of the most powerful features of an IUL is the ability to access your cash value through tax-free policy loans. Here is how it works:
Many IUL owners use policy loans to supplement retirement income, fund business opportunities, or cover large expenses — all without triggering a taxable event. This makes IUL an effective tax-free income stream in retirement when structured properly.
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Indexed Universal Life (IUL) insurance is a type of permanent life insurance that builds cash value based on the performance of a stock market index like the S&P 500, while providing a floor that protects against market losses. Read more
IUL can be a good financial tool for high-income earners seeking tax-advantaged growth and those who have maxed out traditional retirement accounts. It is not a pure investment but a hybrid insurance-savings vehicle. Read more
IUL offers higher growth potential through market-linked returns with a floor, while whole life provides guaranteed fixed returns (typically 2-4%). IUL has flexible premiums; whole life has fixed premiums. IUL is better for accumulation; whole life is better for guarantees. Read more
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