When you are considering companies for indexed universal life insurance (IUL), it makes sense to stick with a reputable firm. You need an agent that will be able to consider what’s best for your circumstances and choose from a range of different options.
As a result, it’s best to look for an agent that represents several different companies, rather than one affiliated with only one. It also pays to ask what their area of expertise is. Do they specialize in IULs or do they also offer other types of products?
IULs are not ideal for everyone, and this needs to be taken into consideration. It’s important to understand your options as well as what each company offers before making a choice. So, what are the best indexed universal life insurance companies?
Columbus Life IUL
Columbus Life can trace its roots back to 1906, making it one of the oldest insurers in the United States. The company is stable, offers innovative products, and gives clients excellent value for their money. With over a century in the insurance industry, your investment is in good hands.
Their Indexed Explorer Plus is one of their most popular IUL products. It is based on the performance of the S&P 500. There are a few options to choose from within the product, depending on whether you want a fixed or variable rate.
AIG is a global name in insurance and has a sterling reputation. The company was created by Cornelius Vander Starr in 1919. AIG has established a reputation for excellent customer service, and clever products matched to market needs.
Currently, it offers a few different IUL options. These are:
- Elite Index II
- Elite Global Plus II
- Elite Survivor Index II
- Elite Index II
- Value + IUL
The products have three different types of death benefits:
- A straight death benefit that never changes
- A straight death benefit that never changes + a return of your premiums
- A death benefit that increases over time
American National IUL
American National found its beginnings in 1905 and is a household name in the United States. A.M. Best gave the firm an “A” rating, which is exceptional. American National is popular because it allows you to apply telephonically and may not require a medical examination. It also offers a few different options when it comes to IUL policies.
Their policies offer you a choice between a fixed and variable rate and the company will allow you to borrow against the policy if in need. You can even opt to include options like disability waivers if you like.
AXA Equitable IUL
AXA is a global player that is considered one of the best insurers in the world. It is a highly stable company that offers simple to understand products and good returns.
In terms of IULs, you have two basic options – BrightLift Grow or Brightlife Protect. The former is ideal for those who are a little younger and have a less risk-averse profile. The indexes tracked for this plan may include some higher-risk stocks to boost potential returns.
BrightLife Protect is better suited to those nearing retirement age. The idea of this policy is to ensure that you get stable returns.
John Hancock IUL
John Hancock is an insurer based in the United States and one that is also a household name. The company has innovative value add-ons such as their Vitality Program. These value add-ons ensure that you get the very best bang for your buck.
There are a few different IUL products. The most popular is their Accumulation IUL that includes Vitality benefits. This product is one of the best in its class and has historically outperformed most of its competitors. It tracks the S&P 500 Index.
Lincoln National IUL
Lincoln National is a company that also has a long history. It can be traced back to around 1905. It is one of the strongest and best-loved insurers in America. The company offers three different IUL products, namely:
- Lincoln WealthAdvantage Indexed UL
- Lincoln LifeReserve Indexed UL Accumulator
- Lincoln WealthPreserve Survivorship Indexed UL
Their products are linked to the S&P 500 and can be adjusted for your own needs. You can access the cash portion through company loans at guaranteed interest rates.
Minnesota Life IUL
Securian owns Minnesota Life. Don’t feel too bad if you’ve hardly ever heard of it – it keeps a low profile. That said, it is one of the top-rated insurers. It focuses its efforts more on creating the right mix of products than doing a lot of marketing.
Minnesota Life offers four different IULs so that you get the perfect product to match your needs:
- Orion IUL
- Eclipse Protector IUL
- Eclipse Index Life
- Omega Builder IUL
National Life Group IUL
National Life is a mutual insurance company and offers a range of products. The company is one of the oldest in the game, originating way back in 1848. It is a well-established company that achieves an excellent rating every year.
The company offers three different IUL products:
- SecurePlus Provider IUL
- FlexLife IUL
- Ultra Select IUL
You can customize quite a bit to get exactly the right mix of coverage and cash accumulation value.
North American Company IUL
The North American Company forms a part of the Sammons Group and was founded in 1886. It is a top-rated insurer that offers a diverse range of products that tend to perform well.
An advantage here is that that company is not publicly listed and so it does not have to answer to shareholders. This means that it can focus on keeping its clients happy, rather than just doing what the shareholders want.
North American offers four IULs. They are:
- Survivorship GIUL
- Builder IUL
- Rapid Builder IUL
- Guaranteed Builder IUL
Pacific Life IUL
Pacific Life is another one of the golden oldies and a stalwart in the American insurance market which opened in 1968. It focuses on creating a strong legacy through innovative product mixes that perform well and offers a few different IUL accounts.
Where it differentiates itself, though, is that you can take up the No-Lapse Guarantee offer. It’ll cost you a bit more but ensures that your policy won’t lapse for four to twenty years, depending on how old you are when you take it out. The no-lapse guarantee can be extended after that by attaching a rider to your policy.
The IULs on offer are:
- EURO STOXX 50
- MSCI Emerging Markets
- S&P 500
You can also choose the death benefit that suits you best.
- A fixed benefit
- An increasing benefit
- A death benefit and the return of premiums
Penn Mutual IUL
Founded in 1847, Penn Mutual is another one of the household names in the American insurance industry. It offers a good mix of value and innovation with its policies providing a couple of different IULs:
- Accumulation Builders Select
- Accumulation Builder
These products trace either the S&P Global Broad Market Index or the S&P 500 index. The annual fixed interest rate is guaranteed to never fall below one percent, so you’re assured of receiving some return on your money.
Prudential is a multi-national insurer opened in 1875. It is considered one of the leading insurers and most-trusted insurers in the United States. It offers attractive rates and good performance with its IULs.
There are three IUL products offered by this company:
- Survivorship Index UL
- Index Advantage UL
- Founders Plus UL
If we look at some of the others on our list, this company, at sixty years old, is a relative newcomer. That said, it’s backed by Sumitomo Life, one of the biggest insurers in Japan. Symetra has proven itself as a strong competitor and offers excellent products.
One of their most popular products is the Accumulator IUL. This product is designed to grow your cash as fast as possible. The company offers a range of options, depending on the index strategy that appeals to you most.
Choose between the:
Symetra is also the only IUL company tracking the JP Morgan ETF Efficiente 5 Index. This index is designed to control volatility. You could also track the S&P 500 index or opt for a combination of the two.
Transamerica also has a well-established and robust history. It was initially formed in 1928 and has become a household name. It is rated A+ by A.M. Best.
It offers a great range of choice with its IULs. You can choose between the following options:
- Basic Interest: Here you’re guaranteed a minimum of 2 percent
- Global Index: you’re guaranteed a minimum of 0.75 percent
- S&P 500: Again, the guaranteed minimum is 0.75 percent
- Hang Seng Index
- Euro Stoxx 50 Index
How to Find a Good IUL Broker
Finding a good broker or agent is going to take a little research. We’d recommend asking people that you trust whether they can recommend anyone. If this isn’t an option, look online for brokers in your area.
Do thorough research on them upfront. What are the reviews online about them like? A good broker should have many more positive reviews than negative ones. The next thing to look into is what the broker’s qualifications are. Are they qualified to help you with your overall financial planning? Are they members of any professional associations?
Finally, make an appointment and see how you get along with the broker. How much listening do they do? How much talking do they do? A good broker will be able to give you an idea of where you should be looking but should also want to do more homework before coming up with a plan. It might even be worth your while to consider a paid consultation with a broker. That way, they’ll get paid for coming up with a great financial plan, instead of having to rely solely on sales commissions.
Overall, finding a great broker means putting in some time and effort. It’s an effort that’s well-worth spending when you’re considering your financial future, though—especially with so many great indexed universal life insurance companies to choose from.