Indexed Universal Life Insurance
Get life cover and build wealth all in one flexible policy.
An indexed universal life insurance policy offers flexible life cover and the potential to build cash value over time.
Bridging the gap
How can you protect your family’s financial future and grow your wealth during your lifetime?
Traditionally, the best strategy would involve purchasing a life insurance policy and investing in the stock market.
Indexed universal life insurance (IUL) bridges that gap. It gives you lifelong coverage and a cash value that can grow with the market, so you can build wealth over time.
An IUL policy is more than just life insurance. It helps you to:
Why choose Holborn for universal life insurance?
Indexed universal life insurance can seem complicated, but we make it easy to get the coverage you need. Here’s why people choose Holborn:
Personalised guidance
Our advisers help design a universal life insurance plan tailored to your needs.
Trusted providers
We partner with top universal life insurance companies to make sure you get the best market-leading coverage.
Holistic approach
Your universal life policy should support your broader financial planning strategy. We help match your coverage to your long-term goals for wealth, estate, and retirement planning.
Key features and benefits of indexed universal life insurance
Lifelong cover
Unlike term life insurance, a universal life policy provides a guaranteed death benefit for the rest of your life.
Market-linked growth
Your policy’s cash value grows based on the performance of a market index that it tracks (S&P 500, Nasdaq, etc.). You benefit from market-linked returns, while the guarantee of a minimum interest rate means funds will earn a specified minimum rate of interest.
Reduced risk
While your rate of return can vary based on market performance, your money is protected. Policies have a 0% floor, meaning your cash value balance can never fall because of stock market losses.
Tax advantages
The cash value component of your policy grows on a tax-deferred basis for better returns. Death benefits are also typically passed on without being taxed. However, you should seek specialist advice to ensure your policy is structured correctly and benefits from tax-free payouts.
Flexible premiums
With a universal life policy, you have more control than with other life insurance products. You can change your payments as your finances change. Pay extra to grow your cash value faster, or lower your payments if you need to for a while.
Financing options
Indexed universal life insurance lets you borrow money using your policy as security. This can help you pay for education, start a business, or invest in other opportunities.
How indexed universal life insurance works
Protecting your income is straightforward. Here’s how it works:
You pay a premium
A portion of your monthly payment covers the cost of insurance; the rest builds your cash value.
Cash value accumulation
Your cash value grows based on how the index performs. If the market falls, your cash value remains protected with a guaranteed minimum interest rate.
Access your money
You can borrow or withdraw from your policy while you are still alive without cancelling your cover.
Death benefit is paid
When you pass, your loved ones receive the policy’s death benefit. In most cases, this is tax-free.
Get covered and build wealth
Indexed universal life (IUL) insurance offers greater control and flexibility. It allows you to secure your family’s future and provides several benefits while you are still alive.
With an IUL policy, you get long-term growth and lifelong peace of mind.
Indexed Universal Life Insurance FAQs
Indexed universal life (IUL) is a type of permanent life insurance. It provides a death benefit and a cash value component that tracks an index, such as the S&P 500. The cash value grows based on the performance of the market.
Traditional universal life policies depend on how the life insurance company’s fund performs. With an IUL policy, your cash value is tied to a major market index like the S&P 500 or Nasdaq, giving you more potential for growth.
This type of policy is a good fit for people who want lifelong protection, investment opportunities, and flexibility—especially high earners. It can also help with estate planning by offering a tax-efficient way to pass on wealth.
Yes, you can borrow or withdraw money from your cash value, often without paying taxes, depending on your policy. Keep in mind that any outstanding loans will be taken out of the death benefit.
Your cash value is protected from market downturns. Most policies guarantee a minimum interest rate, so your money keeps growing even if the market drops. This helps lower your risk and keeps your savings safe.
Yes, IUL policies are built for flexibility. You can raise your death benefit if you want more coverage, or lower it to reduce your monthly payments. Some limits may apply, so speak with our experts to find out more.