Tool Last reviewed: 2026-10-03 Part of Tools

IUL Funding Checker

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

What this does: enter your issue age, death benefit, annual premium and how many years you plan to pay. The checker estimates the 7-pay premium limit for that death benefit and tells you whether the design is overloaded (likely a MEC), loaded right (max-funded), balanced, or a semi-truck with an empty tank. It is an estimate, not a MEC test; the insurer's illustration is the test.

Check your design

IUL funding checker: car, SUV or semi-truck?

Estimate, not a MEC test; the insurer's illustration is the test. Uses a 7-pay estimate from 2017 CSO nonsmoker male mortality at a 2% interest rate. Women and smokers will differ.

Age at issue

Death benefit ($)

Annual premium you plan to pay ($)

Years you plan to fund it

How the checker works

Tax law caps how much premium a life insurance policy can take in its first seven years for a given death benefit. That cap is the 7-pay limit in IRC §7702A (IRC §7702A). The checker estimates it from the 2017 CSO nonsmoker male mortality table (Society of Actuaries) at a 2% interest rate, which is close to the rate tax law uses for newer policies. It then compares your premium to that estimate:

Over 100%: overloaded car. The policy would likely be a MEC.
80 to 100%: SUV loaded right. Max-funded.
40 to 80%: partly loaded. A balance between protection and cash value.
Under 40%: semi-truck with an empty tank. Big death benefit, little fuel, the design most likely to lapse late in life if crediting disappoints.

The bands are Hans's rule of thumb, not industry definitions. Real limits depend on sex, health class, riders, the death benefit option and the insurer's own calculation, and the guideline premium test in §7702 can bind before the 7-pay test does. The full story is in max-funded IUL explained.

Free read

Get the guaranteed-column answer.

Send your email and I'll send the in-force illustration request letter, then read your policy's guaranteed column for you.

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

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

What the checker cannot tell you

It does not project cash value, and it ignores the policy's charges. The single most useful number it cannot give you is how long the policy lasts on the guaranteed column. For that, ask the insurer for an in-force illustration (if you own the policy) or a new illustration with guaranteed, midpoint and illustrated-scale columns side by side. Hans grades either on the Goldstein Index.

What to do next

Run your numbers above.
If you own the policy, request an in-force illustration (the request letter is on the policy review page).
If the checker says semi with an empty tank, read IUL problems when you are older before your next premium.

Want the real numbers, not an estimate?

Send your illustration or annual statement. Within one business day Hans tells you the funding level, the guaranteed-column lapse age, and what he would change.

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

Is this IUL funding checker a MEC test?

No. It is an estimate based on 2017 CSO mortality at a 2% interest rate. The insurer runs the actual 7-pay test, and the illustration shows the real limits for your policy.

What is a good funding level for an IUL?

For cash accumulation, Hans's rule of thumb is about 80 to 100% of the 7-pay limit, the max-funded zone. For protection first, a lower level can be fine if you understand the guaranteed column.

Why does a low premium on a big death benefit matter?

The cost of insurance is charged on the amount at risk, which stays large when cash value is thin. As rates rise with age, those designs are the most likely to lapse late in life.

Does the checker store my numbers?

No. The calculation runs in your browser. Your numbers are only sent if you ask for Hans's full read by email.

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.