Fixed Index Universal Life Insurance

Life doesn’t always happen exactly like we plan. Unexpected events can throw us a curveball, making us rethink and adjust our financial strategy along the way. From family changes (a birth, marriage or divorce, for example) to an unexpected illness or even a significant drop in the market, your financial needs will likely evolve over time. That’s why it makes sense to ensure your life insurance coverage is flexible to weather the changes and still meet your needs.

One way to accomplish this is with Fixed Index Universal Life insurance (FIUL). Not only does it provide a crucial death benefit for your loved ones in the event of your early demise, it also has many other features to help you meet any challenges head on to help you meet your financial and retirement goals.

FIUL offers you valuable benefits, such as:

Tax Advantages: The policy’s death benefit is paid out to your beneficiaries tax-free. In addition, the policy accumulates cash value that you can use during your life time, through tax free policy loans and withdrawals[1]. As long as the policy has sufficient value to sustain itself, you can take money for retirement income, to fund a college education, or any other purpose you wish. Your death benefit is then reduced by the amount you withdraw during your lifetime.

Earn interest based on the movement of an external market index – without ever being invested in the market: The FIUL allows you to earn interest each year tied to the performance of an external index, such as the S&P 500, without being exposed to market losses. In a year when the selected market index is up, the insurance company calculates interest for your policy, adjusting it for limiting factors such as caps, spreads and/or participation rates. You won’t earn all of the gain that the index does, but you also won’t lose any money in a down year due to market loss. This means that you never have to make up for market losses in order to benefit from future market increases.

Guarantees for your policy values: Your policy values are guaranteed by the issuing company and will never be reduced due to market losses.

Long Term Care Protection: Many FIUL policies offer you added protection should you have unexpected heath care expenses due to long term care. With the costs of health care in retirement rising rapidly, it’s important that you have a plan in place to help cover expenses and protect your retirement savings. With an optional long term care rider, often available at additional cost, you can use a percentage of your death benefit while you are alive to help cover long term care expenses, without penalty.


Insurance product guarantees rely on the financial strength and claims-paying ability of the insuring company.

Life insuranceinvolve fees and expenses, including surrender charges for early withdrawals, and may require underwriting to qualify for coverage. FIUL is subject to caps, spreads and/or participation rates which will reduce the amount of interest earned.