Universal Life Insurance (IUL)

Universal Life Insurance (IUL)

Universal life insurance, also known as adjustable life insurance or flexible premium life insurance, is a type of permanent life insurance that provides coverage for the policy holder's entire life, as long as the premiums are paid. Like whole life insurance, universal life insurance has a cash value component that accumulates over time and can be accessed by the policy holder while they are alive.


Universal life insurance policies are characterized by their flexibility and their ability to adjust the death benefit, premiums, and cash value components of the policy. Policy holders can generally choose the amount of coverage they want, within certain limits, and they can adjust their premiums and the amount of money that goes into the cash value component of the policy.

Universal life insurance policies typically have a minimum premium requirement and a maximum death benefit, and the policy holder's cash value may be reduced if the premiums are not paid or if the policy holder withdraws money from the cash value.


Universal life insurance is a good option for individuals who want the flexibility to adjust their coverage and cash value over time, and who want to provide financial protection for their entire life. It is also a good option for individuals who want to accumulate cash value that they can access while they are alive.


It is important to carefully consider the benefits and limitations of a universal life insurance policy and to understand the costs and exclusions associated with the policy.

Index universal life insurance, also known as indexed universal life insurance or IUL, is a type of universal life insurance that combines the flexibility of universal life insurance with the potential for cash value growth based on the performance of a stock market index, such as the S&P 500.


Here are some of the top benefits of an index universal life insurance policy:


  1. Potential for cash value growth: One of the main benefits of index universal life insurance is the potential for cash value growth based on the performance of a stock market index. This can provide an opportunity for the policy holder to earn a higher return on their cash value than they might with a traditional universal life insurance policy.

  2. Flexibility: Index universal life insurance policies generally offer the same flexibility as traditional universal life insurance policies, allowing policy holders to adjust the death benefit, premiums, and cash value components of the policy.

  3. Lifelong coverage: Like traditional universal life insurance, index universal life insurance provides coverage for the policy holder's entire life, as long as the premiums are paid.

  4. Potential tax benefits: The cash value of an index universal life insurance policy may grow on a tax-deferred basis, which means that the policy holder does not have to pay taxes on the growth of the cash value until it is withdrawn. In addition, the death benefit of an index universal life insurance policy is generally tax-free, which can help to minimize the impact of estate taxes on the policy holder's beneficiaries.

  5. Estate planning: An index universal life insurance policy can be an important tool for estate planning, as the death benefit can be used to cover expenses such as estate taxes and funeral costs, and to provide financial support for the policy holder's loved ones.

Deepak Sharma

Deepak Sharma

Insurance Advisor / WealthGuard


  • My goal is simple, protect what is important to you. I focus my energy on discovering your exposure to risk and building a comprehensive plan to protect you against those risk.