Design an accumulation IUL from premium and pay period, read illustrated income correctly, and open the carrier illustration before you apply.
▶ Watch: BackNine in 5: IUL (5 min)
An accumulation IUL is permanent life insurance for a client who wants to fund coverage during their working years and see what the policy could illustrate as supplemental income later. This walkthrough shows how to design it, compare carriers, and open the actual carrier illustration.
How it works
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Crediting follows an index such as the S&P 500, subject to a cap, floor, or participation rate. The client is not invested in the index.
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The floor protects the index credit, not the policy value. Cost of insurance, fees, and rider charges still come out, so policy value can drop in a zero-credit year.
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Tax-favored access means loans and withdrawals from a properly funded, non-MEC policy that stays in force. Those reduce cash value and death benefit. A lapse with an outstanding loan can create a tax bill.
Say these points before you show any chart.
What you need before you start
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Client basics, build, nicotine, and health
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Planned premium and payment mode
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How long they’ll pay
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When they’d like distributions to begin
The click path
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Enter the payment mode, premium amount, and pay period. The walkthrough uses a 46-year-old male paying $12,000 a year to age 65, a 19-year pay period.
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Let the marketplace solve for the objective. Don’t pick a carrier first.
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Review the results. The default sort is by the income objective.
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Open the carrier-generated illustration directly from the results screen.
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Adjust as needed using the filters for premium, mode, product type, riders, loan type, and solve.
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Continue into the application.
What to get right on the call
Illustrated is not guaranteed. The income on screen is illustrated. It depends on crediting assumptions and is paid through policy loans and withdrawals. Use the word “illustrated” every time you mention a number.
The top result is a sort, not a recommendation. The ranking reflects the solve you ran. Change the premium, pay period, or solve, and the order can change.
Know the defaults. The walkthrough solves for the minimum non-MEC death benefit. Variable products appear only for securities-licensed producers.
Leave chronic illness and LTC riders off unless care is the goal. Those riders change the design significantly. If the client’s concern is long-term care, see the Long-Term Care walkthrough.
After you submit
The application follows the same path as term and whole life: client info, ownership, beneficiaries, existing coverage, underwriting questions, and signatures. Then the case moves into BOSS.
Ready to run one? Click Launch Quote & Apply at the top of BOSS. For your first IUL, send us the client’s age, state, planned premium, how long they’ll pay, and whether the priority is death benefit, illustrated income, or both. We’ll help design it.