When you think about life insurance, you may picture something that only pays out after you’re gone. But Indexed Universal Life insurance—also known as IUL—offers something much more powerful: protection for your family, growth potential for your money, and tax-free access to cash while you’re still living.
As a financial strategist and legacy advocate, I want more of us, especially women and small business owners, to understand how IUL can be a life-changing tool in our wealth-building journey.
What Is IUL Insurance?Indexed Universal Life insurance is a type of permanent life insurance that provides:
A death benefit to protect your loved ones
A cash value account that grows based on the performance of a market index (like the S&P 500)
The opportunity to access that cash tax-free through loans or withdrawals when structured properly
The best part? Your cash value can grow when the market performs well, but it’s also protected by a floor, meaning you won’t lose money when it drops.
How It Works in Real LifeLet’s say you’re a 45-year-old woman with a small business. You open an IUL policy and make consistent monthly contributions. Over time, your cash value grows based on index performance. By your 60s, you might:
Borrow against the cash value to help fund retirement or a child’s education
Leave a tax-free legacy to your children
Maintain access to your money, without penalty for early withdrawal, like with some retirement plans
Who Should Consider IUL?IUL may be a good fit if you:
Want tax-free retirement income
Need flexible access to funds for future goals
Are focused on protecting your family and building generational wealth
Are already maxing out, or don’t qualify for traditional retirement plans
What to Keep in MindLike all financial tools, IUL isn’t for everyone. It requires:
A long-term commitment (typically 10+ years)
Consistent contributions
A clear understanding of fees, caps, and how the index strategy works
But when used with intention and guidance, it can be a powerful way to grow and protect what you’ve worked so hard for.
Final ThoughtIUL isn’t just about insurance but freedom, flexibility, and legacy. It’s a way for us to rewrite the financial stories we’ve inherited and create something more substantial for the next generation.