Indexed Universal Life (IUL) Reviews and Guide (2026)

Written and reviewed by Hans Goldstein, licensed insurance producer, NPN 20602398 · CA Insurance License #4273294
Last reviewed October 3, 2026 · Published October 3, 2026

Editorial review by a licensed agent who may earn a commission. No insurer pays for placement or grades. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy.

Every IUL graded on the Goldstein Index

Goldstein Index v1, graded Oct 3, 2026. Draft grades on public data; "Pending" means the fact is not public yet or waits for Hans's standardized case. How we grade.

Grades are draft editorial grades on public data, dated and sourced on each review. "Pending" means the fact is not public or waits for Hans's standardized illustration (male 45, preferred nonsmoker, $12,000 a year to 65). No insurer pays for placement or grades.

The three numbers that decide an IUL

1. Funding level. The same premium can buy a small policy loaded close to the tax-law limit (cash value builds fastest) or a large policy fed the minimum (most death benefit, least cash, most late-life lapse risk). Hans calls them the car, the SUV and the semi-truck. Max-funded IUL · Check your funding level.

2. The guaranteed part of the cap. Current caps get the headlines (12.25% on Allianz Life Accumulator, 10.25% on Nationwide Accumulator II as of their 2026 sheets), but they can change. The guaranteed minimum cap is the contract's promise, and it ranges from 0.25% to 4% among the products we reviewed. Caps, floors and illustrations.

3. What a loan costs right now. Variable and indexed policy loans track corporate bond yields, which ran high in 2026 (the NAIC's Moody's corporate average, the benchmark for policy loan rates, was 6.25% in September 2026, NAIC), and regulators cap the spread an illustration may assume between the loan rate and the index credit at 0.5% (AG 49-A). Borrowing is a way to reach cash value, not an arbitrage. IUL loan rates in 2026.

How IUL cash value works: where your premium goes

In this model a male 45 paying $10,000 a year loses about 15% of the first 10 years of premium to charges when the policy is max-funded, and about 22% when the same premium buys three times the death benefit. The surrender charge is extra: in year 1 the cash surrender value is about $4,245 of $10,000 (max-funded) and $0 (target-funded), which is why early cash value can feel like half the premium disappeared. A common rule of thumb is that roughly half of early premium goes to charges; in this model that is close for year-one surrender value, and too high for the ongoing charges in a well-funded design.

Hypothetical. Not an illustration of any specific policy. Not a quote. Model on current (non-guaranteed) charges: premium load 10% (years 1-10) then 5%, $10 a month fee, per-$1,000 charge for 10 years, current COI at 80% of 2017 CSO select rates, 6% illustrated crediting. Guaranteed maximum charges are higher. Ask your insurer for the policy's actual charge schedule.

The cost of insurance ladder

Read it like a ladder. The insurance part of the policy gets more expensive every year: the guaranteed maximum rate is about $8 per $1,000 at 65, $24 at 75 and $82 at 85 (2017 CSO). Each step is small until the late 70s, then the ladder curves up sharply. In a well-funded policy the cash value grows faster than the charges, so the policy carries itself with no extra premium (green). In an underfunded policy the charges eat the cash value from the inside, and the owner must pay more or the policy lapses (red, at 79 here). Real results usually land between those lines, which is why an in-force illustration every few years matters.

Hypothetical. Not an illustration of any specific policy. Not a quote. Male 45, preferred nonsmoker. Charges per the stated model; COI is charged on the net amount at risk (death benefit minus cash value), so the dollar cost depends on both the rate and how much coverage the cash value has not yet replaced. Source for rates: Society of Actuaries, 2017 CSO table 3291.

If you are shopping

• Best IUL by buyer type
• IUL pros and cons
• Is IUL a scam?
• What an IUL costs
• IUL fees and charges
• Option B to A for accumulation
• Paramed vs no-exam IUL
• IUL vs whole life · GUL vs IUL · IUL vs Roth

If you already own one

• When does cash value catch up?
• IUL problems when you are older
• My IUL is lapsing
• Got a cost of insurance increase letter?
• Should I surrender my IUL?
• Overloan protection rider

Product reviews

• National Life FlexLife
• Mutual of Omaha IUL Express
• Mutual of Omaha Income Advantage
• Mutual of Omaha Life Protection Advantage
• Pacific Life Pacific Horizon IUL 2
• Nationwide IUL Accumulator II
• Allianz Life Accumulator
• John Hancock Accumulation IUL
• F&G Pathsetter
• Securian Eclipse Accumulator II
• Lincoln WealthAccumulate 2
• Lincoln WealthProtector
• Transamerica Financial Foundation IUL II
• Americo Instant Decision IUL

Hans's opinion, not a rule: an IUL done right (funded close to the limit, for 15+ years, by someone under about 55 who also needs the death benefit) is the most efficient way most people can pair permanent coverage with cash value. Done wrong, it is an expensive policy that lapses at 80.

Own an IUL, or were you quoted one?

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Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.

Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer

Frequently asked questions

Sources

1. LIMRA: 2025 full-year top 20 IUL company rankings
2. Allianz Life Accumulator rate sheet M-8871 (9/1/2026)
3. Nationwide IUL crediting rates (FLM-1491AO)
4. NAIC: Moody's corporate bond yield averages (policy loan benchmark)
5. NAIC Actuarial Guideline 49-A (IUL illustrations)