Is my money invested in the stock market?

No. Your cash value is not invested directly in the market. Instead, growth is credited based on the performance of a chosen index, subject to the policy's floor and cap. The floor helps protect against index losses.

What are caps and floors?

A cap is the maximum interest your cash value can be credited in a strong index year, and a floor is the minimum — often 0% — that protects your value when the index declines. Together they balance growth potential with downside protection.

Can I change my premium payments?

IUL is designed to be flexible. Within policy limits, you can often adjust your premium payments over time as your income and needs change. Your agent can show how different funding levels affect your coverage and cash value.

Coverage

Indexed Universal Life (IUL)

Indexed universal life insurance, or IUL, is permanent coverage that pairs lifelong protection with flexible premiums and cash value growth linked to a market index. A floor helps protect your accumulated value from market downturns, while a cap defines the upside in strong years — a structure built for long-term wealth building alongside protection. As an independent brokerage based in Dallas and licensed nationwide, Legion Financial Group compares IUL designs across many top-rated carriers.

An upward trending chart representing the index-linked cash value growth of an IUL policy

What is indexed universal life?

IUL is a type of permanent life insurance. It provides a death benefit for life and accumulates cash value, but unlike traditional whole life, the growth of that cash value is tied to the performance of a market index such as the S&P 500 — without your money being invested directly in the market.

Each policy includes a floor and a cap. The floor protects your accumulated value from index losses in down years, while the cap limits how much your value can grow in strong years. This is how IUL aims to balance growth potential with downside protection.

How IUL works

Flexible premiums — you can adjust what you pay within policy limits as your circumstances change.
Index-linked growth — cash value can grow based on a chosen market index.
Downside protection — a floor (often 0%) helps shield accumulated value from index declines.
Growth caps and participation rates — define your share of index gains in positive years.
Tax-advantaged accumulation — cash value grows tax-deferred and may be accessed through policy loans.

Who IUL is for

IUL tends to fit people who want permanent protection plus a flexible, tax-advantaged way to build long-term value. It can appeal to higher earners looking for additional tax-advantaged accumulation, business owners, and anyone comfortable with a more dynamic policy in exchange for growth potential.

Living benefits

Many IUL policies offer optional living benefits that can let you access part of the death benefit early in the event of a qualifying serious illness. Availability and terms vary by carrier and product, and your agent can explain which riders are available to you.

Why work with an independent broker

IUL is one of the more nuanced products in the market, and caps, floors, and crediting methods differ significantly between insurers. As an independent broker, Legion compares these details across many top-rated carriers and explains the trade-offs in plain language so you can choose with confidence.

Frequently Asked Questions

Related Coverage

Whole Life Insurance

Permanent coverage with a guaranteed death benefit, fixed premiums, and growing cash value.

Learn more

Universal Life (UL)

Permanent coverage with flexible premiums and an adjustable death benefit.

Learn more

Annuities

Tax-deferred growth and reliable retirement income options for pre-retirees and retirees.

Learn more

Talk through Indexed Universal Life (IUL) with a licensed agent.

No obligation — just clear answers and an honest recommendation that fits your family and budget.

Talk to a Licensed Agent Back to all coverage

Product availability, features, riders, and guarantees vary by carrier, product, and state, and are subject to the issuing carrier's terms and underwriting. This page is for general information only and is not insurance advice or an offer of coverage.