The top six indexed universal life insurance companies are Accordia, Penn Mutual, Securian, Symetra, AIG, and Lincoln Financial. They offer high cap rates, low loan interest, and floor rates of 0% or higher.
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.
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$25,968Securian100%-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$23,758Penn Mutual100%9.5%1%Traditional: Adjustable; 3.4%Indexed: 6%$166,203$220,392$24,507Lincoln Financial100%-Plus: 9%-Conserve: 7.75%Plus: 0%Conserve: 1%-Participating: 5.5%-Fixed: 4% through year 10; 3% thereafter$137,106$197,007$20,957AIGML 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$21,923SymetraVaries; min 15%; max 180%Varies; No cap; 2.75%; 12.5%0%-Standard: 4.25%-Participating: 5.5%$159,855$232,066$22,475
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