Watch this first
IUL: 0% Floor, Index Growth, and Life Insurance
A plain-English walkthrough of indexed universal life and why it is not for everyone.
⚙️ Client Profile
$400/mo
6.5%
7.0%
Roth IRA
Capped at $7,000/yr · Market Exposed
$0
Projected Balance at Retirement
Annual Limit$7,000/yr cap
Actual Yearly Contribution$0
Total Contributed$0
Tax-Free Growth✓ Yes
Death Benefit✗ None
Living Benefits✗ None
Market Downside Risk✗ Full exposure
Income Limit?✗ Phase out $161k+
Indexed Universal Life
No Caps · 0% Floor · Living Benefits
$0
Projected Cash Value at Retirement
Annual LimitNone (unlimited)
Actual Yearly Contribution$0
Total Contributed$0
Tax-Free Growth✓ Yes (Section 7702)
Death Benefit✓ Included
Living Benefits✓ Critical Illness
Market Downside Risk✓ 0% floor
Income Limit?✓ None
📈 Cash Value Growth Over Time
📋 Year-by-Year Snapshot
| Age | Year | Roth IRA Value | IUL Cash Value | IUL Advantage |
|---|
🔍 Feature-by-Feature Comparison
| Feature | Roth IRA | IUL |
|---|---|---|
| Contribution limit | $7,000/yr max | ✓ No limit |
| Income eligibility | ✗ Phases out $161k+ | ✓ Anyone qualifies |
| Tax-free growth | ✓ Yes | ✓ Yes (7702) |
| Tax-free withdrawals | ✓ Qualified | ✓ Policy loans |
| Market downside risk | ✗ Full exposure | ✓ 0% floor |
| Market upside participation | ✓ Full market | ~ Capped (~10-12%) |
| Death benefit | ✗ None | ✓ Included |
| Living benefits (critical illness) | ✗ None | ✓ Early access |
| Loan provisions | ✗ 10% penalty pre-59½ | ✓ Tax-free loans anytime |
| Required Minimum Distributions | ✓ No RMDs | ✓ No RMDs |
| Creditor protection | ~ State-dependent | ✓ Protected in most states |
| Estate transfer | ~ Taxable to heirs | ✓ Income-tax-free to heirs |
Ready to show your client the full picture?
Every number above is based on their actual profile. Book a strategy session and let's structure their IUL today.
Book Free Strategy Session →