Downside protection
The 0% floor means a market crash never results in a negative index credit. Gains you’ve been credited stay credited.
Indexed Universal Life for Retirement
Keep the upside.
Keep the upside.
Skip the market crashes.
An Indexed Universal Life (IUL) policy links your cash value growth to a market index like the S&P 500®, with a 0% floor so a down year never credits a loss. It can also provide tax-advantaged retirement income and a death benefit for the people you love.1
- Market-linked growth potential: earn index credits when the market rises, up to a cap
- A 0% floor on index credits: market drops never reduce your credited interest
- Potential tax-free income: access cash value through policy loans in retirement2
- Protection built in: a generally income-tax-free death benefit for your family
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✔ Licensed professionals only
⏱ Takes 60 seconds
See if an IUL fits your plan
Get a free, no-obligation review from a licensed professional in your state, plus our IUL Retirement Playbook.
Why people are rethinking retirement
Your 401(k) wasn’t built for what retirement looks like now
Most retirement plans leave you exposed to three risks at once: market losses, future taxes, and a retirement that could last 30 years or more.
−18%
S&P 500 total return in 2022. If that loss lands right before or early in retirement, it can permanently shrink the income your savings can produce.
Source: S&P Dow Jones Indices, calendar-year 2022 total return.100%
of pre-tax 401(k) and traditional IRA withdrawals are taxed as ordinary income, at whatever rates apply in the future.
Per current IRS rules for pre-tax contributions and earnings.30+ yrs
is how long retirement can last for someone retiring in their early 60s. Running out of money is a real risk.
Based on current life-expectancy tables for healthy retirees.
0%floor on index credits, even in a down market
Let’s plan a retirement that flows
Retire with confidence. Live with peace.
At RetireFlow, we connect pre-retirees with trusted, licensed professionals and smart strategies to build the secure retirement you deserve.
For many families, an Indexed Universal Life policy is the missing piece. It’s a way to keep growing your savings without watching a single bad year undo a decade of hard work, and to create a stream of retirement income the IRS doesn’t automatically get a cut of.
We start by learning about your goals, then match you with a licensed professional in your state who can show you real numbers, explained in plain English.
Speak with a Retirement Specialist
How an IUL works
Participate in gains. Never credit a market loss.
An IUL is permanent life insurance with a cash value account. Instead of investing directly in the market, your cash value earns interest based on how an index performs, within limits set by the policy.
You fund the policy
Premiums pay for the death benefit and policy costs. The rest builds your cash value.
The index decides your credit
When the index rises, you’re credited a share of the gain, up to a cap or participation rate.
The floor protects your credits
When the index falls, your index credit is 0%. Past credits are locked in and don’t give back gains.
You access it in retirement
Use policy loans or withdrawals for supplemental income while the death benefit protects your family.
Hypothetical index return
IUL index credit (0% floor, 10% cap)
Hypothetical illustration for educational purposes only. Not based on any actual policy or index performance. Caps, floors, and participation rates vary by carrier and can change. Policy fees and charges are deducted from cash value regardless of index performance.
Why people choose an IUL
One policy, several jobs in your retirement plan
An IUL isn’t a replacement for everything. It’s a flexible tool that can fill gaps a 401(k) or IRA leaves open.
Tax-deferred growth
Cash value grows tax-deferred. You don’t receive a 1099 each year for the interest your policy earns.
Potential tax-free income
Properly structured policies let you access cash value through policy loans that are generally not taxed as income.2
No age-59½ penalty
Unlike most qualified plans, there’s no IRS early-withdrawal penalty and no required minimum distributions.
A legacy for your family
A death benefit that is generally paid income-tax-free to your beneficiaries, so your plan protects them too.
Living benefits
Many policies offer riders to access part of the death benefit early for a qualifying chronic, critical, or terminal illness.3
Side by side
How an IUL compares
Each option has trade-offs. Many people use an IUL alongside their 401(k) or IRA, not instead of it.
| 401(k) / Traditional IRA | Roth IRA | Indexed Universal Life | |
|---|---|---|---|
| Market losses | Full exposure | Full exposure | 0% floor on index credits |
| Upside potential | Uncapped | Uncapped | Linked to index, subject to caps |
| Taxes on income | Taxed as ordinary income | Tax-free (qualified) | Potentially tax-free via policy loans2 |
| Contribution limits | IRS annual limits | IRS limits + income limits | No IRS income limits (funding guidelines apply) |
| Early access | 10% penalty before 59½ | Rules on earnings before 59½ | No IRS age penalty |
| Required distributions | Yes (RMDs) | No (for original owner) | No |
| Death benefit | Account balance only | Account balance only | Life insurance death benefit |
| Costs to know | Fund & plan fees | Fund fees | Cost of insurance & policy charges; surrender charges in early years |
General comparison only. Rules vary by plan, product, and individual circumstances. Your licensed professional can walk through the details for your situation.
Free download
Get the IUL Retirement Playbook, free
A plain-English guide to how IULs really work: the good, the trade-offs, and the questions most people forget to ask. No jargon, no sales pitch.
- 1Caps, floors & participation rates, and what they mean for your money
- 2How tax-free retirement income works with policy loans, and how to avoid the traps
- 3The funding mistake that causes policies to underperform or lapse
- 4IUL vs. 401(k) vs. Roth: where each one fits
- 5A checklist of 7 questions to ask any agent before you sign
Your guide downloads instantly, and we’ll email you a copy plus occasional retirement-planning tips. Unsubscribe anytime. Privacy Policy.
Honest answer
Is an IUL right for you?
It’s a powerful tool for the right person, and the wrong fit for others. Here’s a quick gut check.
Often a strong fit if you…
- Want growth potential but lose sleep over market crashes
- Expect taxes to be the same or higher in retirement
- Have maxed out, or want to go beyond, your 401(k) or IRA
- Earn too much to contribute directly to a Roth IRA
- Want life insurance protection for your family anyway
- Can commit to funding a policy consistently for 10+ years
Probably not the best fit if you…
- Need the money in the next few years
- Haven’t built an emergency fund yet
- Carry high-interest debt you’re still paying down
- Can’t commit to a consistent premium
- Are only looking for the cheapest death-benefit coverage (term life may fit better)
What happens next
Simple, personal, and pressure-free
Step 1
Tell us about you
Answer a few quick questions. It takes about 60 seconds.
Step 2
Meet your professional
We match you with a licensed insurance professional in your state and email you their details right away.
Step 3
See your numbers
Get a personalized illustration showing how a policy could fit your goals and budget.
Step 4
Decide on your terms
Take your time. There’s no cost and no obligation, ever.
Questions
Frequently asked questions
Is an IUL an investment in the stock market?
No. An IUL is a life insurance policy. Your cash value is not invested in the market. Instead, the insurance company credits interest based on the performance of an index (like the S&P 500®), subject to a cap, participation rate, and a floor.
Can I lose money in an IUL?
Your index credits can’t go below the floor (typically 0%), so a market drop won’t create a negative index credit. However, policy charges and the cost of insurance are deducted from your cash value every month. In years with low or zero credits, your cash value can decrease, and surrendering early can trigger surrender charges. That’s why proper design and funding matter.
How is the retirement income “tax-free”?
In a properly structured policy that isn’t a Modified Endowment Contract (MEC), you can generally withdraw up to your basis and take policy loans without owing income tax. Loans accrue interest and reduce the death benefit. If a policy lapses with a loan outstanding, taxes may be due. Always confirm your situation with a tax professional.
How much does an IUL cost?
It depends on your age, health, goals, and how you fund the policy. Some people start with a few hundred dollars a month; others fund much more. Your licensed professional will show you options at different budgets.
Do I need a medical exam?
Not always. Depending on your age, health, and coverage amount, some carriers offer simplified underwriting with no exam. Your professional will explain what applies to you.
Who will contact me, and will I be pressured?
After you submit the form, we’ll email you the name and contact details of the licensed insurance professional you’re matched with. They’ll reach out to schedule a short conversation. There’s no cost and no obligation, and you can opt out at any time.
Your retirement deserves a plan that goes with the flow
Find out in one short conversation whether an IUL could help you grow, protect, and enjoy what you’ve worked for.