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 Florida-licensed for life, health & annuities, plus auto, home & personal property, and holds reciprocal appointments in other states. Always consult a tax professional before making retirement decisions. This is not tax or legal advice.