Seven Financial Group · Coverage education
Indexed Universal Life (IUL)
Permanent life insurance with index-linked interest crediting—and important funding, cost, and policy risks.
Coverage duration
Permanent coverage only while sufficient policy value and required funding keep it in force.
Premiums
Flexible within policy limits; flexibility does not eliminate charges or funding needs.
Cash value
Index-linked crediting; growth is not guaranteed and charges can reduce value.
Insurance—not a stock-market investment
IUL is life insurance. Indexed crediting uses a contractual formula linked to an index; policyholders do not directly own the index’s stocks through the policy. Cash value growth is not guaranteed.
Premium and death benefit flexibility
Premium payments and death benefit options may be adjustable within policy limits and underwriting requirements. Increasing coverage can require approval. Paying too little can cause the policy to lapse even after years of premiums.
Caps, floors, participation rates, and spreads
A cap limits credited interest; a participation rate sets the portion of index change used; a spread subtracts from the crediting result; a floor sets a minimum crediting rate for a segment. These are not the same as a guaranteed net return. Policy charges can reduce cash value even with a zero-percent crediting floor.
Policy expenses and surrender charges
Cost-of-insurance charges, administrative expenses, rider costs, and other fees reduce policy value. Surrender charges may apply when ending coverage or making certain withdrawals. Expenses and crediting terms must be read in current approved materials.
Loans, withdrawals, and taxes
Loans and withdrawals reduce available value and can reduce the death benefit or contribute to lapse. Loan interest and crediting treatment vary. Tax treatment depends on the policy and circumstances; modified endowment contract rules and lapse with loans may create taxable income. Consult a qualified tax adviser.
Guaranteed versus non-guaranteed illustrations
An illustration shows scenarios, not a prediction. Review both guaranteed and non-guaranteed values, funding assumptions, maximum charges, and what happens with lower crediting or higher costs. Obtain ongoing in-force illustrations.
Who might consider IUL?
People seeking long-term death benefit protection who can support sustained funding and understand policy complexity may consider it. It is not a guaranteed retirement income plan or a substitute for regulated investment advice. Review affordability, alternatives, surrender periods, and lapse risk before deciding.
Frequently asked questions
Is a quote a guarantee of coverage?
No. The insurer determines eligibility, premiums, and final policy terms. A request starts a coverage conversation.
Which product is available in my state?
Availability depends on the insurer, product, state, and confirmed producer appointments. Ask for current approved materials and policy terms.