IUL Basics
Free, about 2 minutes

The IUL policy check-up

Already own an IUL? Answer 10 quick questions and see how healthy your policy looks, what to ask your carrier, and whether it's worth a closer look. Your score shows right away. No email needed.

1Are your beneficiaries current?

Marriage, divorce, a new child or a passing can leave the wrong person named. It's free to fix and one of the most common problems we find.

2Are you paying at least the premium the policy was designed with?

IULs are built on a funding plan. Paying less than the target premium is the most common reason cash value stalls or a policy lapses later.

3Has your cash value grown, after charges, over the last 2 to 3 years?

Your annual statement shows cash value after every charge. Flat or shrinking value in a funded policy is a sign to look closer.

4Has anyone run an in-force illustration for you in the last 2 years?

An in-force illustration re-projects your policy with today's caps and costs. The one from the day you bought it is probably out of date.

5Do you know your current cap and participation rate, and whether they changed?

Carriers can lower caps over time. A lower cap changes every projection, and you may be able to move to a better index option.

6Do you know whether your policy is a MEC (modified endowment contract)?

If a policy becomes a MEC, loans and withdrawals lose their tax advantages. Overfunding a policy is the usual cause.

7If you have a policy loan, do you know its type and rate? (Answer yes if you have no loans.)

Fixed, variable and indexed loans behave very differently. With an indexed loan, a 0% year means you still pay loan interest while the borrowed value earns nothing.

8Does your policy have an overloan protection rider?

This rider can keep a heavily borrowed policy from lapsing late in life and creating a large tax bill. Not every policy has it.

9Do you know what living benefits your policy has, and how they pay?

Chronic, critical and terminal illness riders can let you use part of the death benefit while you're alive. Terms vary a lot by carrier.

10Is your policy projected to stay in force past age 100 at current assumptions?

If the projection shows the policy running out of money in your 80s or 90s, there's usually time to fix it now, and much less later.

Educational only. This check-up can't see your policy's actual values, and it isn't a recommendation to keep, change or replace a policy. Replacing a policy has costs and new surrender periods, so any change needs a careful side-by-side review.