01
Permanent structure
The policy is designed to continue while its requirements are met. Premiums, cash value, and the death benefit interact in ways that can affect how long coverage remains in force.
Indexed Universal Life
Understand the full policy—not only a projection.
Indexed Universal Life, or IUL, is a form of permanent universal life insurance. It combines a death benefit with a cash-value component subject to policy terms, charges, and a defined crediting method. It is not an investment or a promise of future income.
Michael Linares · Linares Life
What to review
A complex policy deserves a complete explanation.
This page provides a general educational framework. The policy, riders, illustration, and applicable disclosures control.
02
Index-linked crediting
Interest credits may be linked to the change in an external index through a formula set by the insurer. The policy does not invest directly in the index. Caps, participation rates, spreads, and other factors may limit or change the credit.
03
A floor does not remove every risk
A minimum crediting rate, when present, applies to the relevant crediting method. Policy charges still apply, so cash value may decline and the policy may lapse if it does not have enough value.
04
Guaranteed and non-guaranteed values
An illustration separates guaranteed values from values based on assumptions. Non-guaranteed values can change. A projection is not a promise of performance.
05
Policy charges
A policy may include cost-of-insurance charges, administrative charges, surrender charges, and other costs described in the contract. These charges affect policy values.
06
Loans and withdrawals
Access to policy value depends on contract terms. Loans and withdrawals may reduce cash value and the death benefit, accrue interest, increase lapse risk, and create tax consequences.
07
Taxes and MEC status
Tax treatment depends on individual circumstances and how the policy is structured and managed. A Modified Endowment Contract, or MEC, is treated differently. This page is not tax advice; consult a qualified tax professional.
08
Why the illustration matters
An illustration shows values under different assumptions. Review it alongside charges, guarantees, non-guaranteed rates, and conditions that might require additional premium to keep the policy in force.