Is your IUL set up right?
A licensed agent checks your policy for free. If it's set up right, they'll tell you to keep it.
Your answers go to Derrick Robison, a licensed insurance agent with Porch Light Coverage, to get ready for your policy check.
Set up right? They’ll tell you to keep it and not let anyone touch it.
Not? You’ll know how to fix it.
Three things to check
- Is it underfunded? Too little going in lets the costs drain it.
- Was it sold on returns it never earns?
- Are the costs inside quietly eating it up?
What the free check looks at
- What you pay in, compared with what the policy was planned aroundYour original illustration (the projection you were shown when you bought it) shows a planned payment. Paying well under it can leave the policy short over time.
- The rate it was illustrated at, compared with what it has really been creditedWhen you bought it, the illustration assumed a rate. Real credits and caps can be different. The check puts them side by side.
- Cost of insurance increasesHow much the monthly charge has gone up so far, and what it’s likely to do as you age.
- Loan balance and interestIf you’ve borrowed, how big the loan is and how much interest is building on it.
- Whether it’s on track to lapse (end)Whether the cash value can keep paying the charges, or whether the policy could run out.
Warning signs your IUL may be in trouble
None of these means your policy is bad. They’re reasons to get it checked.
- You pay less than the amount you were shown when you bought it, or you’ve skipped payments.
- No one has looked at the policy since the day you signed.
- The cash value isn’t growing the way you were told it would.
- The monthly charges keep going up.
- You’ve borrowed against it and the loan keeps growing.
- A statement or a letter from the insurance company says the policy could lapse.
What to have ready
Your latest annual statementIt shows what you paid in, the charges, and the cash value.
An in-force illustration from the insurance companyIt shows where the policy stands today and where it could be headed if things stay the same. It isn’t a guarantee.
Don’t have them yet? The insurance company can send copies, and you can book your call anyway.
How an indexed universal life (IUL) policy works
- It’s life insurance first
- It pays a death benefit to the people you name. Part of what you pay also goes into a cash value.
- The cash value can earn index-linked credits
- The credits are tied to a market index, like the S&P 500. Your money isn’t in the stock market, and credits don’t include stock dividends. The credit is limited by a cap and other limits, like a participation rate. The insurance company sets them and can change them.
- A 0% floor limits a down year
- If the index falls, the credit for that year is 0%. That floor covers the credit only. Fees and charges still come out of the cash value, so the cash value can still go down.
- There are costs inside
- Each month the policy pays for the insurance itself. That’s the cost of insurance, and it generally goes up as you get older. There are also policy fees. If you cancel or change the policy in the early years, surrender charges can apply.
- You may be able to borrow against it
- Loans charge interest. They lower the cash value and the death benefit, and they can cause the policy to lapse. Loans are generally not taxed as income while the policy stays in force. That changes if it becomes a modified endowment contract (MEC), which can happen if more is paid in than federal limits allow. A lapse with a loan still owed can mean a tax bill.
- Some policies have a living-benefit rider
- If your policy has an optional living-benefit rider, you may be able to use part of the death benefit early. That’s only after a qualifying serious illness. It lowers what your family gets later. It may cost extra, can have tax effects, and varies by insurance company and state.
Quick answers
Will you try to make me replace it?
No one will push you to replace your policy. If it’s set up right, Derrick will tell you to keep it. If not, Derrick will walk you through your options, and the choice is yours. This free check isn’t a recommendation to buy, replace, or cancel any policy.
Does it cost anything?
No. The check is free, and there’s no obligation. Derrick is paid by an insurance company only if you choose to buy a policy.
Who is the agent?
Derrick Robison, a licensed insurance agent with Porch Light Coverage.
What happens next
You answer a few questions. You pick a time for a free call with Derrick. Derrick looks at your policy and gives you a straight answer. No one will push you to replace your policy.
Start my free check Rather call first? (816) 223-2134This is a free policy check from an independent licensed insurance agent. It is not a recommendation to buy, replace, or cancel any policy. Indexed universal life (IUL) is life insurance. It is not an investment, a savings account, or a bank product, and it is not FDIC insured. Index credits are limited by caps and other limits the insurance company sets and can change. A 0% floor applies to credits only, and fees and charges still come out of the cash value. Loans charge interest, lower the cash value and death benefit, and can cause the policy to lapse. Guarantees depend on the claims-paying ability of the insurance company. Coverage requires underwriting. Examples are hypothetical. This is not tax or legal advice. This is a solicitation of insurance and is marketing by an independent agent, not by an insurance company. This page is not affiliated with Meta, Facebook, or any government agency. By submitting the form you agree to be contacted as described in the consent you provide.