Coverage / Indexed universal life
Indexed universal life (IUL) insurance
Permanent coverage with flexible premiums and index-linked cash value.
Indexed universal life (IUL) is a type of permanent life insurance that combines a death benefit with a cash-value component tied to the performance of a market index (such as the S&P 500). Your cash value can grow when the index does well — usually up to a cap — and is typically protected from market losses by a floor. IUL also offers flexible premiums. It's more complex than term or whole life, so it's best reviewed with a licensed agent.
Who it's a fit for
- People who want permanent coverage plus index-linked growth potential
- Those who want flexible premium options
- Longer-term planning goals
- Anyone comfortable with a more complex product reviewed with a professional
How it works
- Coverage is permanent, with a cash-value account linked to a market index.
- Growth is typically capped on the upside and protected by a floor on the downside.
- Premiums are flexible within policy limits.
- Because IUL is complex, a licensed agent should walk you through the details and illustrations.
Good to know
- Caps, floors, participation rates, and fees vary and affect results.
- Illustrations are not guarantees of future performance.
- Underfunding the policy can put coverage at risk over time.
- This is general information, not financial, tax, or investment advice — review with a licensed professional.
Indexed universal life — common questions
Is IUL an investment?
No. IUL is life insurance with a cash-value component linked to an index. It is not a direct investment in the market, and this isn't investment advice. A licensed agent can explain how the cash value works.
Why is IUL more complex?
It has more moving parts — caps, floors, participation rates, fees, and flexible premiums — so the outcome depends on how the policy is funded and how the index performs. That's why it's best reviewed with a licensed agent.
See if indexed universal life fits your situation.
Start a quick quote, or talk with a licensed agent — no obligation.
Seven16 Life provides general information to help you explore life insurance options. This is not financial, legal, or tax advice.
Coverage is subject to eligibility, the application, and underwriting. Not everyone will qualify, and approval is never guaranteed.
Products and availability may vary and may not be offered in all states.
Coverage is provided and underwritten by licensed insurance providers. Seven16 Life may refer or connect you with licensed providers or partners where appropriate.