Policy Owners Last reviewed: 2026-10-03 Part of Indexed universal life

IUL Loan Rates in 2026: Carrier by Carrier

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

Short answer: IUL loans come in two families. Fixed (standard) loans charge a set rate and credit the borrowed value a set rate; on several policies they net to zero cost after year 10. Indexed or participating loans charge roughly 5% to 5.5% in 2026 while the borrowed value keeps earning index credits, which can be anything from 0% to the cap. With corporate bond yields above 6%, there is no arbitrage story: use loans for access, prefer fixed loans for steady income, and watch the loan against the cash value.

Published loan terms, 2025 to 2026

IUL loan terms from carrier documents

Carrier / product	Fixed or standard loan	Indexed / participating loan	As of
Lincoln WealthProtector	4% years 1 to 10, 3% after; credited 3% (net 0% from year 11)	Indexed 5.50%	2/2026
Securian Eclipse Accumulator II	4% charged; credited 3% years 1 to 10, 4% after (net 0% from year 11)	Indexed 5%	7/2025
Nationwide IUL Accumulator II	Declared 3.90% years 1 to 10, 3.00% after	Indexed 5% current, 8% max	3/2026
Corebridge Max Accumulator+ III	3.00% effective; credited 2.00%	Participating 5.50% current, 8% max	6/2026
Prudential Momentum	2.00% years 1 to 10, 1.05% after; credited 1.00%	Declared; not above fixed account rate + 1%	6/2026
Allianz Life Accumulator	2.91% up front years 1 to 10, 1.96% after; 2% credit	5% up front, guaranteed for life	7/2026 (secondary source)
John Hancock Accumulation IUL	3.25% years 1 to 10, 3.00% after	Fixed index loan 5.50%	1/2026 (secondary source)
F&G Pathsetter	n/a	Variable, 5% maximum	4/2026
Pacific Life Horizon IUL 2	n/a	Fixed-charge indexed loan, 4.5% guaranteed	11/2024

Sources: Lincoln, Securian, Nationwide, Corebridge, Prudential, Allianz, John Hancock, F&G, Pacific Life. Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change.

The spread math

Net cost of borrowing by loan type (hypothetical)

Index credit on the borrowed value	Indexed loan at 5.5%	Fixed loan netting 0%
0% (flat or down year)	-5.5% on the borrowed amount	0%
5%	-0.5%	0%
8% (strong year, under the cap)	+2.5%	0%

Hypothetical. Not an illustration of any specific policy. Not a quote.

Illustrations may assume at most a 0.5% positive spread on these loans (AG 49-A), because the real spread is volatile. The Moody's corporate bond average that state law uses as the policy loan benchmark was 6.25% in September 2026 (NAIC), which keeps variable loan rates high in 2026. Over a long retirement, a few 0% years on an indexed loan cost more than most people expect.

Policy owners

Planning IUL income?

Send your email and I'll send the in-force illustration request letter. Return the illustration and I'll review it within one business day.

We’ll email it to you. Hans Goldstein · NPN 20602398.

Rather talk it through? Or book 15 minutes on Hans’s calendar.

How to borrow safely

Prefer the fixed loan for regular income, especially after year 10 if it nets to zero.
Keep the loan below roughly 80 to 90% of cash value, and check yearly.
Pay at least the interest in years when you can.
Know whether you have an overloan protection rider and when it triggers.
Request an in-force illustration showing loans to age 100 before starting income.

Policy loan vs HELOC · Overloan protection rider · Lapse with a loan

Send the statement or letter. Get a plain answer.

Within one business day you get a written read: what the letter or statement means for your policy, the options, and the one to take first. No pressure to change anything.

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

What are IUL loan rates in 2026?

Fixed or standard loans run about 2% to 4% charged, and several net to zero after year 10. Indexed or participating loans charge about 5% to 5.5% in published 2025 and 2026 documents.

What is the difference between a fixed and an indexed IUL loan?

A fixed loan charges and credits set rates. An indexed loan charges a rate while the borrowed value keeps earning index credits, which can be 0% in a flat year.

Is IUL loan arbitrage real?

Not reliably. A 0% index year makes the spread negative, and regulators cap the spread illustrations may assume at 0.5%.

Which IUL loan is best for retirement income?

Usually the fixed loan, especially on policies where it nets to zero cost after year 10.

Can IUL loans make my policy lapse?

Yes, if the loan grows faster than the cash value. A lapse with a loan can also create taxable income.

Sources

Hans Goldstein, CA Insurance License #4273294 · NPN 20602398 · Goldstein & Co. LLC dba Goldstein Insurance Services, CA License #6016830

Contact: hans@hansgoldstein.com · 213-414-2808

General education, not tax or legal advice. Tax treatment depends on your facts and on current law, which can change. Talk to your CPA or estate attorney. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Guarantees apply only to the contractual terms of the policy. Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change. 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. Product and company names are trademarks of their owners. Goldstein Insurance Services is an independent agency, not affiliated with or endorsed by any insurer named here. Life insurance requires underwriting; not everyone qualifies. This page describes products in general terms; read the policy and the insurer's disclosures before you buy.