Beginner’s Guide to Selling Indexed Universal Life (IUL): What New Agents Need to Know

December 16, 2025 3:18:17 PM

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Why IULs Are Becoming Essential for Life Insurance Agents

Indexed Universal Life offers clients:

  • Permanent life insurance protection

  • Tax-advantaged cash value growth

  • Interest crediting tied to market index performance

  • Flexible premiums + adjustable death benefits

  • Access to living benefits

Consumers increasingly search terms like “tax-free retirement,” “safe growth alternatives,” and “permanent life insurance with cash value,” which makes IULs a valuable addition to your portfolio.

How an IUL Works — Simple Overview for New Agents

IULs build cash value using interest credits derived from the performance of an external index such as the S&P 500®. The client’s money is not invested in the stock market.

Key Components

  • Caps – maximum interest credited

  • Floors – minimum credited (usually 0%)

  • Participation rates – how much of the index gain is used

  • Fixed account option – stable, guaranteed interest

With downside protection and upside potential, IULs are suitable for retirement income planning, wealth transfer, college funding, and long-term savings.

Top IUL Carriers You Can Offer Through Final Expense Brokerage

1. F&G (Fidelity & Guaranty Life)

F&G offers two primary IUL solutions giving agents a choice between accumulation and protection designs.

F&G Pathsetter® IUL — Accumulation-Focused Design

Pathsetter® is F&G’s flagship accumulation IUL, built for strong crediting potential and flexible premium design.

Highlights

  • Issue ages 0–80, minimum face $50,000

  • Exam-free underwriting ages 0–60 up to $1,000,000

  • Multiple S&P 500® and Barclays index strategies

  • 0.25% minimum guaranteed interest on fixed account

  • Account Value Bonuses on select strategies (1% beginning year 2; 0.25% persistency bonus starting year 11)

  • Access to cash value via withdrawals and policy loans

  • Two death benefit options: Option A (Level) and Option B (Increasing)

F&G Everlast® IUL — Protection-Focused Design

Everlast® is F&G’s long-term protection IUL with higher minimum face amounts and steady accumulation potential.

Highlights

  • Issue ages 0–80

  • Minimum face: $150,000 (ages 0–45), $100,000 (ages 46–80)

  • Exam-free underwriting ages 0–60 up to $1,000,000

  • Multiple S&P 500® and Barclays index crediting options

  • 0.25% guaranteed minimum interest on fixed account

  • 0.25% persistency bonus starting year 11

  • Access to cash value through withdrawals and loans

  • Two death benefit options: Level and Increasing

2. American Amicable — Intelligent Choice IUL

Intelligent Choice is a flexible IUL combining lifelong protection with index-linked accumulation potential.

Highlights

  • Cash value tied to S&P 500® performance

  • 0% floor, 2.5% guaranteed minimum cap

  • Face amounts $25,000 to $500,000

  • 20-year no-lapse guarantee (or to age 80)

  • Living Benefit Riders included

  • 100% participation rate

  • Indexed + declared interest account options

  • Loans (7.4% rate) and withdrawals available

  • Adjustable death benefits: Level or Increasing

3. Mutual Trust Life — Vista Life IUL

Vista Life IUL is built for flexibility with multiple index choices and premium-adjustment freedom.

Highlights

  • Fixed account + three index accounts (S&P 500®, EURO STOXX 50®, NASDAQ-100®)

  • 0% floor and 2% guaranteed fixed account minimum

  • Flexible premium options (planned, minimum, or extra)

  • Change allocations or index selections annually

  • Death benefit options: Level or Increasing

  • Access to cash value via withdrawals, traditional loans, and participating loans

  • Premiums received by the 10th sweep into accounts on the 15th

  • Each premium creates a new one-year index segment

4. United of Omaha — IUL Express®

IUL Express is a simplified-issue IUL offering affordable, accessible permanent protection.

Highlights

  • Flexible premiums with built-in 20-year no-lapse guarantee (or to age 80)

  • Simplified underwriting — no medical exam

  • 0% floor with annual point-to-point crediting

  • Fixed and indexed crediting options

  • New index segments created monthly

  • Living benefits included (Terminal, Chronic, Critical Illness)

  • Access to cash value through loans and withdrawals

How Agents Should Present IULs to Clients

1. Upside Potential + Downside Protection

“You participate in market growth — without market losses.”

2. The Three-Bucket Framework

  • Protection

  • Growth potential

  • Tax advantages

3. Tax-Free Income Conversation

Explain policy loans and withdrawals as strategic retirement tools.

Common Mistakes New Agents Should Avoid

  • Overstating potential returns

  • Not explaining caps, floors, and participation rates

  • Ignoring guideline premium design (GPT vs CVAT)

  • Skipping discussions on policy loans

Get Contracted and Start Selling IULs

Final Expense Brokerage provides training, product support, and contracting with top-tier IUL carriers:

  • F&G

  • American Amicable

  • Mutual Trust Life

  • United of Omaha

Want product sheets, illustrations, or contracting links?
Just let us know — we’ll send everything you need to begin positioning IULs with confidence.

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