What's the difference between IUL and whole life?

Whole life offers guaranteed growth and fixed premiums. IUL offers flexible premiums and higher growth potential tied to an index, with a 0% floor but no guaranteed returns above it.

Can I lose money in an IUL?

The index floor protects credited interest from going negative, but policy fees and charges still apply, so cash value can decline if the policy is underfunded.

What is guaranteed universal life?

GUL is a no-frills permanent policy focused on the death benefit. It has little cash value but guarantees coverage to an age like 90, 100 or 121 — often for half the cost of whole life.

Universal / IUL · Compare quotes

Universal & Indexed Universal Life

Flexible permanent coverage with growth potential.

Universal life (UL) is permanent coverage with flexible premiums and an adjustable death benefit. Indexed universal life (IUL) ties cash value growth to a market index like the S&P 500 — with a floor that protects you from losses. Guaranteed UL (GUL) offers lifetime coverage at a lower cost than whole life.

Coverage length

Lifetime

Premiums

Flexible

IUL floor

0% typical

Best for

Lifetime coverage at a lower price (GUL)
Tax-advantaged supplemental retirement (IUL)
High earners who max out other accounts
Business owners & key-person plans

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What's the main reason you want coverage?

This helps us match you with the right policy type.

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How it works

How universal / iul coverage works

Choose your type

GUL for the cheapest lifetime guarantee, IUL for market-linked growth, or traditional UL for interest-based growth.

Fund it your way

Pay more in good years to build cash value, or less when money is tight — within policy limits.

Grow tax-advantaged

Cash value grows tax-deferred and can be accessed through policy loans, often tax-free.

Pros & cons

Flexible premiums and death benefit
IUL: upside potential with downside protection
GUL: lifetime coverage for far less than whole life
Tax-advantaged cash accumulation

More complex than term or whole life
IUL returns are capped
Underfunding can cause the policy to lapse

Sample monthly rates

Profile	Coverage	Est. monthly
35-yr-old, non-smoker	$500K GUL	$190–$260
45-yr-old, non-smoker	$500K GUL	$310–$420
40-yr-old, non-smoker	$500K IUL	$350+ (flexible)

Illustrative ranges for healthy applicants. Your actual rate depends on underwriting.

Universal / IUL questions, answered

Compare other coverage types

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