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The Best 6 Companies for Indexed Universal Life Insurance (IUL)

Are you looking for a way to set aside some extra money for your senior years, and maybe a little extra for loved ones to inherit? Most people opt for indexed universal life insurance because it offers the greatest cash value growth tied to the performance of S&P 500 index with the least risk thanks to floor rate. These indexed universal insurance policies are also designed to provide extra flexibility for policyholders. A minimum premium payment to keep the policy from lapsing is built in to make it easier to maintain life insurance in all financial situations. 

The large cash value of an indexed universal life insurance (IUL) can also be accessed with partial withdrawals during retirement years, and many policyholders use it to provide supplemental income. We pulled illustrations from each of the six best providers of IULs to show exactly how their policies grow potential wealth for retirement.

Ed Slott – a renowned tax expert – on tax benefits of IUL policies

Compare quotes of 30+ IUL products

A Quick Look at the IULs of Six Top Insurers

Our six chosen insurance companies offer some of the highest cash-values in the industry. They also boast A.M Best ratings of A- or higher, indicating excellent stability and a solid economic outlook. 

The potential policyholder profile used in each of our illustrations is a 37-year-old woman who is getting a policy with a $400 monthly premium. She will continue paying her premiums until she reaches the age of 65 years old. At this point, she’ll have paid up her policy and is able to begin withdrawing income from the cash-value of these accounts. Each of the insurers offer different cap rates on the potential interest earned, but to keep the results comparative each illustration is run with a set interest rate of 6%.

InsurerParticipation RateCap RatesFloor RatesInterest Rates on LoansNon-Guaranteed Cash Value at 20 yearsInitial Death BenefitAnnual Distribution (65-90 years old)
Accordia100%10.5%2%-3.55% Non-Preferred
-1.96% Preferred
$169,981$210,932$25,968
Securian100%-Account A: 9.75%
-Account F: 10%
-Account G: Uncapped
-Account 1: 10% 
0%-Fixed: 4%
-Indexed: 5%
-Variable: Varies; max 1% above fixed account crediting rate
$163,317$216,809$23,758
Penn Mutual100%9.5%1%Traditional: Adjustable; 3.4%
Indexed: 6%
$166,203$220,392$24,507
Lincoln Financial100%-Plus: 9%
-Conserve: 7.75%
Plus: 0%Conserve: 1%-Participating: 5.5%
-Fixed: 4% through year 10; 3% thereafter
$137,106$197,007$20,957
AIGML Strategic Balanced Index: Initial 100%; min. 15%
PIMCO Global Optima Index: 80%; min. 15%
-High Cap: 11.25%
-High Bonus: 8%
-Fixed: 2%
High Cap: 0%High Bonus: 0%Fixed: 2%-Standard: 2.91%
-Preferred: 1.96% – 2.15%
-Participating: 4.76% – 7.4%
$158,792$220,947$21,923
SymetraVaries;
min 15%;
max 180%
Varies; No cap; 2.75%; 12.5%0%-Standard: 4.25%
-Participating: 5.5%
$159,855$232,066$22,475

Accordia

The Global Accumulator IUL from Accordia earned our policyholder the largest amount of money for retirement with a cash-value of $169,981. The policy is quite generous with a 2% minimum growth rate and a 10.5% maximum cap rate. With fairly low interest rates on loans, the policyholder gets a small break when she needs to take out some of the cash-value. This policy offers the highest annual distribution from age 65 to 90 (26 years) at $25,968. Read full review of Accordia Life Insurance Company

>>MORE: The Pros and Cons of Indexed Universal Life Insurance

Securian

The Eclipse Accumulator Indexed Universal Life policy offers four index options ranging from the S&P 500 to the EURO STOXX 50. It features excellent cap rates of 9.75% – 10% and a floor rate of 0%. Index Account G even offers uncapped growth rates, but limits participation to 60%. The illustration we pulled uses Index Account A with a set illustrated rate of 6%. Our policyholder was able to earn a decent $163,317 for retirement by year 20 of her policy. If she opts to receive annual distribution from age 66 to 90, she will receive $23,758 a year for 26 years. Read full review of Securian Life Insurance Company

>>MORE: Compare Indexed Universal Life Insurance With Whole Life Insurance

Penn Mutual

The Accumulation Builder Flex earned the second highest cash-value at the 20-year mark of $166.203. It’s easy to see how with the relatively high cap rate of 9.5% and a minimum floor of 1%. This plan ensures that policyholders earn money in any market. The annual distribution from age 66 to 90 in the illustration is $24,507. Read full review of Penn Mutual Life Insurance Company

>>MORE: Understanding Indexed Universal Life Insurance (IUL) – Why Is It Good for Retirement Savings?

Lincoln Financial

WealthPreserve from Lincoln Financial had grown the least amount of cash-value by the 20 year mark with $137,106. However, it does offer fairly high cap rates, even in the Conserve plan at 7.75%. The Conserve plan also offers a guaranteed floor rate of 1%, which means you’ll earn something even if the index does badly. The annual distribution from age 66 to 90 for the policyholder is $20,957. Read full review of Lincoln Financial Life Insurance Company

>>MORE: IUL vs. Roth IRA: Which One is Better for Your Retirement Savings?

AIG or American General

The Max Accumulator+ offers two index options for policyholders with varying participation rates from a minimum of 15% to a maximum 100%. You’ll also have the opportunity to pick from a high cap rate at 11.25% or a bonus cap at 8%. However, the non-guaranteed cash-value from our illustration produced a similar return as the other policies when the standard 6% interest rate was selected. The annual distribution from age 66 to 90 is $21,923. Read full review of AIG Life Insurance Company

>>MORE: IUL for Retirement Income: Is It a Good Idea?

>>MORE: Why is Indexed Universal Life Insurance (IUL) a Good Idea for Retirement Savings?

Symetra

The Symetra Accumulator IUL 2.0 policy has a complex selection of options for policyholders who want choices. You can pick from three different index options with multiple participation rates for each of the indexes within each. Symetra does offer the biggest potential for growth with indexes that have no cap rate and up to 180% participation rates. Using our 6% interest rate, the cash-value at 20 years was only the fourth largest of the six policies with $159,855 set aside for retirement and annual distribution from age 66 to 90 is $22,475. Read full review of Symetra Life Insurance Company

>>MORE: Should I Invest in S&P 500 Index Through an Indexed Universal Life Insurance Policy?

Ed Slott – a renowned tax expert – on tax benefits of IUL policies

Compare quotes of 30+ IUL products

>>MORE: Symetra Indexed Universal Life Insurance Review

Final Thoughts

  • The top six IUL insurance companies listed offer high cap rates, low loan interest, and floor rates of 0% or higher.
  • The highest cash-value growth and annual distribution to supplement retirement income came through Accordia and the lowest came from Lincoln Financial.
  • Symetra, AIG, Lincoln Financial, and Securian all offer multiple index options for policyholders.
  • Accordia also boasted the most generous floor rate of 2% interest on its Global Accumulator IUL.

>>MORE: AAA Universal Life Insurance Review

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