Educational content, not financial, tax or legal advice. Policy features, costs and guarantees vary by carrier and are subject to underwriting. Talk to a licensed professional about your situation.
When we say tax-free we mean income-tax-free access to cash value through policy loans, and withdrawals up to your basis, from a policy that is not a modified endowment contract (MEC) and stays in force; a lapse or surrender with a loan outstanding can create taxable income. Loans accrue interest and reduce cash value and the death benefit. Index crediting is subject to caps and participation rates that can change; the floor protects credited interest from negative index returns, but policy charges still reduce cash value. Illustrations are hypothetical and not guaranteed. Guarantees depend on the claims-paying ability of the issuing insurer. IUL is not right for everyone.
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