Looking for a policy that offers more than just life insurance? At Bend Health Insurance, we help you build financial protection and long-term tax-advantaged wealth with a properly structured Indexed Universal Life (IUL) policy.
Get your personalized IUL quote now or fill out our quick form to find out how much you can contribute and grow.
Indexed Universal Life Insurance is a type of permanent life insurance that includes:
You don’t directly invest in the market — instead, your cash value is credited interest based on the index’s performance, with built-in protections like:
Floor: A guaranteed minimum (often 0%) so you don’t lose value in down years
Most people fund IULs at the minimum premium — but that misses the real benefit. By overfunding your policy, you accelerate the growth of the cash value, allowing you to:
Reduce reliance on traditional retirement accounts
Let’s compare two funding strategies for a healthy 38-year-old policyholder over 30 years:
This graph shows how much more cash value you can accumulate with the overfunded strategy:
Indexed Universal Life Insurance (IUL) offers a flexible blend of permanent coverage and growth potential. Unlike term life insurance, which expires after a fixed period, or whole life insurance, which grows at a fixed rate, IUL policies build cash value tied to a market index, like the S&P 500. The interest credited to the cash value is based on index performance, but with a floor rate to protect against losses. You also get flexible premiums and the ability to adjust your death benefit over time. This makes an IUL one of the most versatile forms of universal life insurance available.
No. One of the core advantages of an indexed universal life insurance policy is that your cash value is not invested in the market. Instead, it earns interest based on the performance of a financial index. The policy includes downside protection through a guaranteed floor rate, often 0%, meaning your cash value won’t decline due to market losses — even if the index performs negatively. This creates the benefit of market-linked returns without direct market exposure.
You cannot lose money in an IUL due to negative index performance, thanks to the floor rate. However, you can experience a decline in your policy’s cash value if policy charges, fees, or loan interest outweigh credited interest. If loans are mismanaged or if premiums aren't adequately funded, the policy could underperform or lapse. That’s why proper design and ongoing management with a qualified insurance agent is essential.
One of the most powerful features of an IUL policy is the ability to take tax-free loans against your cash value in retirement. As long as the policy remains in force and properly funded, the borrowed amounts are not taxed — because you’re accessing your own money as a policy loan, not income. This makes IULs a compelling tool for supplemental retirement income. Just keep in mind: unpaid loans and interest reduce the death benefit and can affect long-term policy performance.
Overfunding your IUL — as long as it stays within IRS guidelines to avoid becoming a MEC (Modified Endowment Contract) — allows your cash value to grow much faster. Higher premium contributions early on lead to greater accumulation, which can be used later for retirement planning or other needs. This is the key strategy behind using an IUL as a tax-advantaged financial solution.
The cost of an IUL policy depends on your age, health, and how much coverage you need. For example, a healthy 38-year-old non-smoker might pay around $171/month for a base-funded $250,000 policy — or $250 to $500/month if they choose to overfund it. Your exact quote will vary, but we'll help you explore pricing across multiple providers to find the best fit for your goals.
Not always. IULs are best suited for people who want permanent life insurance with the flexibility to build cash value and potentially use it later in life. If you're looking for something simple and short-term, term life may be more appropriate. But if you're aiming to combine death benefit protection with long-term accumulation, downside protection, and tax-advantaged income, an IUL may be worth serious consideration.
Start by requesting a quote or booking a consultation with Bend Health Insurance. We’ll walk you through your options, help you estimate cash value projections based on index performance, and ensure your policy is structured properly for long-term use. Our goal is to help you design a universal life insurance solution that supports your retirement strategy while protecting your loved ones.
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You’ve worked hard to build your life in Bend. Let’s protect it—and grow it—with a smart, long-term insurance strategy.
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