Indexed Universal Life Insurance (IUL)

What Is
Indexed Universal Life Insurance?

Indexed Universal Life Insurance, or IUL, is a type of permanent life insurance that offers a unique combination of lifelong protection and the potential to grow your cash value based on the performance of a stock market index, like the S&P 500. Unlike traditional whole life insurance, IUL policies offer flexibility in both premium payments and death benefit amounts.

An IUL policy allows policyholders to allocate a portion of their premiums to indexed accounts, which have the potential to earn interest based on market performance—without the risk of direct investment in the stock market. These accounts are subject to caps and floors, meaning your returns are limited but you’re also protected from market losses.

Why Choose an
IUL Policy?

IULs are popular because they provide:

Permanent Life Insurance: Coverage that lasts your entire life as long as premiums are paid.
Flexible Premiums: Pay more or less depending on your financial situation.
Cash Value Growth: Your policy’s cash value can grow tax-deferred.
Market-Linked Interest: Earn potential interest based on an index without directly participating in the market.
Downside Protection: Your cash value won’t decrease due to market downturns.

This makes IUL ideal for individuals who want protection for their family and a way to build tax-advantaged cash savings.

Who Is It Best For?

Individuals age 30–65 looking for permanent coverage
Those interested in supplemental retirement income
Business owners or professionals looking for tax-advantaged growth
Parents or grandparents seeking to leave a legacy
Anyone who wants life insurance with greater flexibility than whole life

Key Features of IUL

Index Options: Choose from one or more indices like the S&P 500
Cap and Floor Rates: Growth is capped but never goes below 0%
Loans and Withdrawals: Access your cash value for emergencies or opportunities tax free after age 59 1/2
Adjustable Death Benefit: Increase or decrease coverage as life changes
No Direct Market Risk: Your money is not directly invested in the stock market

How the Application Process Works

Consultation: We get to know your goals and financial situation.
Quote and Customization: We build a custom illustration based on your budget and needs.
Application: Complete a health questionnaire—some policies may require a medical exam.
Underwriting: The insurance company reviews your application.
Policy Issue: Once approved, your policy is in force and ready to grow.

Why Hodges Insurance?

Hodges Insurance offers personalized IUL policy guidance with access to multiple top-rated carriers. Our goal is to help you protect your family and grow your future wealth with confidence. Whether you’re planning for retirement or looking to create a lasting financial legacy, we make the process clear and tailored to your unique goals.