Permanent coverage with cash value — used carefully, never oversold.
The most over-pitched product in the industry. We treat it differently.
Indexed Universal Life is a permanent life insurance contract with a cash-value mechanic tied to an external index. Used correctly, on the right household, it has a real role. Sold as 'tax-free retirement' or 'market upside with no downside,' it leads to broken policies and angry families. We design around the conservative illustration — not the marketing one.
Cash value performance is not guaranteed. We design around the conservative column — anything above it is a bonus, not a plan.
Why most IUL policies break — and how we avoid it.
The product isn't the problem. The way it's sold is. Almost every broken IUL we've reviewed shares the same three failure modes.
Sold as a retirement plan instead of insurance.
When the death benefit is treated as a side effect, the policy is usually under-funded for the cash-value strategy and over-funded for the actual coverage need.
Illustrated at the carrier's maximum credited rate.
If the projection only works at 7%+ assumed crediting, the policy is built to disappoint. We design around 3–5% and treat the rest as a bonus.
Funded inconsistently or stopped early.
IULs depend on consistent funding for years. A few skipped payments in year three can quietly destabilize the entire policy.
assumed credited rate we design around (not 7%+)
Internal underwriting standard
minimum funding horizon before cash-value strategy is even considered
Suitability framework
promises about tax-free retirement, market returns, or guaranteed cash value
Compliance · always
What an IUL actually is — and isn't.
An IUL is a permanent life insurance policy. It has a death benefit (the insurance part) and a cash value account (the savings part). The cash value is credited interest based on the performance of an external index — typically the S&P 500 — but you don't actually own the index. The carrier defines a crediting method with caps, floors, and participation rates. In a bad year, the floor protects you from negative crediting. In a great year, the cap limits your upside. It is not an investment. It is not a 401(k) replacement. It is not, by itself, a retirement plan. Used inside a household that already has core retirement accounts and proper income protection, a carefully-funded IUL can add tax-favored death benefit and supplemental flexibility. Outside that context, it usually doesn't belong.
"If the IUL is your retirement plan, you don't have a retirement plan."
How a Blake-designed IUL differs from a typical pitch.
Designed to look amazing at 7%+ credited rate.
Designed to still work at 3–5% — the carrier ceiling is upside, not the plan.
Vague — 'just pay the premium.'
Explicit funding schedule, with stress-tests for paused years.
Minimum allowed — to maximize cash-value mechanics.
Sized to your actual coverage need first; cash-value strategy second.
'Tax-free retirement' language; guarantees implied but not made.
Written non-guarantee acknowledgment; conservative illustration shared first.
Is an IUL right for you? Here's the honest filter.
We use this filter on every conversation. If your answers don't line up on the right column, we won't recommend an IUL — period.
Our IUL design process.
Suitability filter
If the foundation isn't there, we say so — and recommend what to do first.
Conservative illustration
We anchor the design at the carrier's conservative crediting assumption.
Funding stress-test
We model what happens if you pause funding for a year, two, three.
Written acknowledgment
You sign a document that confirms what's guaranteed and what isn't — in plain English.
What people actually ask Blake
Indexed Universal Life (IUL) is a permanent life insurance product with a death benefit and the potential for cash value accumulation. IULs are not investments. Cash value performance depends on funding strategy, policy charges, and credited interest, and is not guaranteed. Consult the carrier illustration and policy documents for specifics. [PRODUCT-SPECIFIC DISCLOSURES PLACEHOLDER]
Blake Levy is a licensed insurance producer. Insurance products are issued by third-party carriers and subject to underwriting, eligibility, and policy terms. This site is for informational purposes only and is not investment, tax, or legal advice.