Indexed Universal Life Insurance for Wisconsin Families & Professionals
If you're looking for a life insurance policy that does more than just provide a death benefit, indexed universal life insurance (IUL) could be the right fit. Popular across Wisconsin—especially for families, professionals, and high-income earners—an IUL policy offers permanent life insurance coverage plus the ability to build tax-deferred cash value tied to the performance of a market index like the S&P 500.
At Goodman Family Insurance, we help individuals in Brookfield, Milwaukee, and surrounding areas understand how indexed universal life works—and whether it aligns with their long-term financial goals.
How Indexed Universal Life Insurance Works
An indexed universal life policy is a type of permanent life insurance. Like traditional universal life, it includes:
- Lifelong coverage (as long as premiums are paid)
- Cash value accumulation
- Flexible premiums and death benefits
What sets it apart is how the cash value grows. Instead of earning a fixed interest rate, an IUL credits interest based on the performance of a stock market index. Your cash value grows when the index goes up (subject to a cap), but never loses value due to market declines, thanks to a built-in floor—usually 0%.
Example:
If your policy’s index goes up 9% and your cap is 6%, your account gets credited 6%. If the market drops 12%, you simply earn 0%—your cash value doesn’t shrink due to the market.
Why People Choose IUL in Wisconsin
Permanent Coverage with Flexibility
Adjust your premium payments and death benefit as your financial situation changes.
Tax-Deferred Growth
Build cash value without immediate tax consequences.
Market-Linked Growth, No Direct Exposure
Gain upside potential without participating directly in the market.
Retirement Income Strategy
Some use the cash value in retirement through tax-free loans and withdrawals (if properly structured).
From professionals building long-term tax strategies to parents protecting their families while saving for the future, IUL policies offer a creative way to meet multiple goals with one product.
What to Consider Before Choosing an IUL
IULs aren’t for everyone. Like any long-term product, they require proper funding, understanding of policy mechanics, and ongoing management.
That’s why we walk you through the pros and cons to make sure this fits your needs and timeline.
Cap & Participation Limits
You won’t get 100% of the market upside.
Insurance Charges
Fees and cost of insurance can reduce cash value growth, especially if underfunded.
Policy Lapse Risk
If the policy isn’t funded adequately or if markets underperform for long periods, the policy could lapse.
That’s why it’s important to work with a local agent who understands these moving parts—and can tailor the right IUL design for your goals.
Common Questions About Indexed Universal Life
What’s the difference between IUL and Whole Life Insurance?
Whole life offers fixed premiums and guaranteed growth. IUL offers more flexibility and the potential for higher growth, but with more moving parts.
Can I use an IUL to supplement retirement income?
Yes—if funded properly, you can access the cash value tax-free through policy loans or withdrawals. Many use this strategy to create additional retirement income.
Is there a risk of losing money in an IUL?
You can’t lose value due to market drops (thanks to the 0% floor), but insurance costs could eat into your cash value if the policy isn’t managed properly.
What market index is used for IUL growth?
Most IULs use the S&P 500, but other options like the Nasdaq or blended indexes may be available depending on the policy.
Are there fees with IUL insurance?
Yes—costs include insurance charges, administrative fees, and sometimes fees for riders. But there are no direct investment fees since you’re not actually buying market funds.
Let’s Talk About Whether IUL is Right for You
Indexed universal life is not a one-size-fits-all solution—but for the right person, it can be a powerful tool. Whether you're planning for your family's future or looking for a tax-advantaged way to supplement your retirement, we can help you compare options and design the right strategy.
Let’s explore whether an IUL fits into your financial picture. Contact Goodman Family Insurance for a no-pressure consultation today.