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IUL Calculator

Project your Indexed Universal Life insurance cash value, death benefit, and tax-free retirement income across conservative, moderate, and optimistic market scenarios.

Illustrative only. Not financial advice. Consult a licensed insurance professional.

Policy Details

Enter your IUL policy parameters

$
/mo
$
Index Parameters
%

Typical: 80–120%

%

Typical: 8–14%

%

Usually 0–2%

Policy Cost Assumptions
%
$
/yr

Retirement Income (Policy Loans)

Tax-free income taken as loans against cash value

$
/yr
%
Quick Summary
$—
est. cash value at retirement
Years of premiums—
Total premiums paid—
Annual income goal—
Monthly premium—
How IUL Works
Premium split: Part covers Cost of Insurance (COI), part goes to cash value account.
Indexed crediting: Cash value earns interest based on an index (e.g. S&P 500), subject to a cap and floor.
Tax-free income: Retirement income is taken as policy loans — not taxable income (if properly structured).
Death benefit: Heirs receive income-tax-free death benefit, regardless of outstanding loans.
Cap & Floor Explained
Index up 20%You get Cap (e.g. 11%)
Index up 8%You get 8%
Index up 0%You get Floor (0%)
Index down 15%You get Floor (0%)

The floor protects you from market losses. The cap limits upside.

IUL Pros & Cons
✓Tax-free death benefit
✓Tax-deferred cash growth
✓0% floor — no market losses
✓Flexible premiums
✓Tax-free retirement income via loans
✗Caps limit upside
✗High fees vs. term + invest
✗Complex policy structure
✗Loans reduce death benefit
✗Policy can lapse if underfunded