Indexed Universal Life insurance grows your money with the market — without the losses. Plus tax-free retirement income, lifetime protection, and living benefits. The strategy used by smart business owners and high earners.
You put premium dollars into an IUL policy. A small portion covers life insurance — the rest builds cash value. Most clients fund $300-$2,000/month depending on income and goals.
Your cash value is linked to a market index (S&P 500, NASDAQ, etc.) — but with a 0% floor. You capture the upside in good years and never lose money when the market drops.
Starting at age 59½+, you can pull tax-free income via policy loans. Your money keeps growing, your death benefit stays in force, and the IRS doesn't get a dime of your retirement withdrawals.
When the market drops, your cash value doesn't. You can't lose money to market crashes — your worst year is a 0% gain.
Earn returns linked to indexes like the S&P 500. Cap rates of 9-13% are common — and your gains lock in at the end of each crediting period.
Pull tax-free income via policy loans in retirement. No 1099. No early withdrawal penalties. No RMDs (Required Minimum Distributions).
Your family is protected from day one with a death benefit that's typically 5-15x your annual premium contribution.
Most IULs let you access your death benefit early if you're diagnosed with a chronic, critical, or terminal illness. Like long-term care insurance, but flexible.
Unlike 401(k)s ($23k/yr) and IRAs ($7k/yr), there are no IRS-imposed contribution caps. Fund as much as the policy structure allows.
From new parents kick-starting an IUL to retirees living off the cash value — these are the people the strategy was built for.
No 401(k) match? No problem. IULs offer tax-advantaged retirement growth without the contribution caps of an IRA or Solo 401(k).
Already maxing your 401(k) and Backdoor Roth? IULs are the next tier — no IRS limits, tax-free access, no RMDs.
Concerned that taxes will be higher in retirement? IULs give you a tax-free bucket you control — completely independent of future tax rates.
Living benefits riders let you tap your death benefit if you become chronically ill. Combines life + LTC into one efficient policy.
Book a no-pressure 30-min retirement strategy call. We'll run the numbers, compare it to your 401(k)/IRA, and show you exactly how an IUL would fit (or not fit) your situation.
Disclosure: Indexed Universal Life (IUL) policies are complex products. This page is educational and not a guarantee of future results. Cash value growth is not the same as direct market investment. IULs include fees, cost-of-insurance charges, and surrender periods. Loans reduce death benefit if not repaid. Tax treatment depends on individual circumstances and policy structure (MEC rules apply). Flo Faction LLC is licensed in Florida (2-15 & 2-20) and reciprocal states. Always consult a tax professional before making retirement decisions. This is not tax or legal advice.