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IUL Calculator – Estimate Tax-Free Income from Indexed Universal Life Insurance

IUL Calculator
Insurance Quotes 2 Day Team

Written By Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent close to 30 years in the insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health.  Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

Holly Mitchell  &

Holly Mitchell’s background in life insurance insurance goes back to 1985 when she worked for her father who was a New York Life agent. Holly has a marketing degree from Auburn University and has had a life insurance license since 2008. In addition to advising life insurance for customers all around the country, Holly is our website fact checker.

Rob Pinner   &

Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.

Louis LaBash

Results-driven and innovative life insurance professional with 30 plus years of life insurance industry sales and marketing experience. Recognized as a pioneer in the field, leveraging phone and internet channels to exceed personal sales of over $100 million during the first decade of the 21st century. Creator of a highly effective intuitive IUL life insurance sales software that facilitated the sale of millions of dollars of indexed universal policies by numerous life insurance agents. Proven track record as a Managing General Agent (MGA), Life Agent, IUL Life Insurance Sales Software developer, and leading-edge creator of insurance marketing tools, educational content, and delivery systems.

 4 minute read

How do you know how much income an IUL will generate for you during retirement?  It all starts by using our IUL calculator on this page. 

We assume that you are already acquainted with the concept of using Indexed Universal Life Insurance (IUL) as a complement to your current retirement strategy. What you may not know is just how much tax-free income an IUL can add during retirement. This is where our “IUL Calculator” becomes a necessary tool. We designed this calculator to be simple enough for you to get the general idea.  With just two pieces of information, we can help you estimate the tax-free income your IUL policy can generate.

What is an IUL Calculator?

By selecting your current age and the amount you plan to contribute to your IUL policy, the calculator can project the potential growth of your policy’s cash value and the tax-free income you could receive in retirement. We are assuming that your retirement age is 67.  This is also the age at which full Social Security retirement benefits can be paid. 

Our IUL Calculator provides more than numbers; it offers a glimpse into what your retirement picture could look like when you buy an IUL policy. You can adjust the contribution amount to understand how your contributions will affect your future income.  We want you to understand that this is for illustrative purposes only.  Our IUL calculator doesn’t allow you to change your gender, rate class, or age to receive distributions. You should call us or use the IUL quoter on the side of this page so that we can build out a model specifically for you.


Let’s use the IUL Calculator:


How does the IUL Calculator work?

Our friends at Financial Scenarios have helped us build out our IUL calculator with the following data.  We have taken IUL illustrations from an A+ Rated life insurance company over 130 years old.  They have a proven track record with IUL and an industry leader.  We have built this interactive calculator to help educate our clients on the opportunities that can be created using a properly structured maximum-funded IUL policy to generate a tax-free retirement income stream.

We use the full Social Security retirement age of 67 for our distribution calculations.  We can design the policy to generate income at any age.  If your goal is to retire and receive income at age 60, we can show those numbers too. 

These life insurance rates are based on a male non-smoker with average health.  If you are female or super healthy, good for you, the income numbers will be higher.

The goal here is to buy the least amount of life insurance needed to keep your policy IRS compliant (non-MEC Status) and your distributions income tax-free.

We are using the carrier default for the rate of return, which is 5.91%. 


What are the benefits of using an IUL Calculator?

Our IUL (Indexed Universal Life Insurance) Calculator is a simple tool for anyone considering an IUL policy as part of their retirement strategy. This calculator provides clarity and insight into the potential benefits of IUL.  It will help you estimate future income distributions and help you make informed decisions on whether or not to use IUL as a retirement supplement.

Here are the key benefits:

Visualizing Long-term Financial Outcomes:

The IUL Calculator offers projections of how your IUL policy might perform over the years. You input your age and contribution amount.  We are providing a conservative rate of return so that you can see a forecast of your policy’s potential cash value growth and the tax-free income it could provide in retirement.

Understanding the Impact of IUL Contributions:

Our IUL Calculator shows how different contribution levels can affect the potential growth of your IUL policy. This feature is especially valuable in planning how much to contribute regularly to meet your future financial goals.

Choosing the right IUL Policy

As you can see, this is just one company’s IUL policy.  We work with many of the top IUL companies.  If you are considering using IUL as a retirement income strategy, we are here to advise you on which company will work best for you.  Each company will be different in the riders and benefits offered.  Their allocation options will all be different.  Most carriers offer the basic fixed interest rate as well as S&P 500, DOW, and NASDAQ allocations.


We are Here to Listen and Serve
For more information about Indexed Universal Life Insurance and to get your projection, use the IUL calculator on the side of this page or call us at 1-800-712-8519.

Frequently Asked Questions

What is an IUL Calculator, and how can it benefit me?

An IUL Calculator is a financial tool designed to estimate the potential growth and tax-free retirement income from an Indexed Universal Life Insurance policy. It helps you visualize long-term financial outcomes based on age, contribution amounts, and other variables. This tool is beneficial for tailoring your IUL policy to your individual financial goals and understanding the impact of different contribution strategies.

How accurate are the projections made by this IUL Calculator?

While IUL Calculators provide valuable estimates, it’s important to remember that they are based on assumptions and projections. Actual results can vary due to market performance, policy changes, and individual circumstances. Therefore, while these calculators are useful for planning, they should be used as a guide rather than a guarantee.

Can I use an IUL Calculator if I’m already nearing retirement?

Yes, an IUL Calculator can be a valuable tool regardless of your current age. For those nearing retirement, it can provide insights into how much you can contribute in the remaining years and the potential benefits you can still achieve with an IUL policy.

What should I do if the IUL Calculator shows I won’t meet my retirement goals?

If the calculator indicates that your current plan may not meet your retirement goals, consider revising your strategy. This might involve increasing your contributions, adjusting your policy, or exploring additional financial products. It’s also advisable to consult with a financial advisor for personalized advice and to explore all available options.

author avatar
Doug Mitchell, CLU Independant Advisor
Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA. Doug has spent almost 30 years in the life insurance industry and has also held licenses to sell securities, long-term care insurance and home and auto insurance. Doug is a Top of the Table Million Dollar Round Table member (MDRT).  MDRT is a global, independent association of the world's leading life insurance advisors.  For two years, Doug served as President of the Auburn Opelika Association of Financial Advisors and has been a member of the Million Dollar Round Table. He obtained Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award. Later in his career with New York Life he was an Executive Council Member. Doug currently serves as President of Ogletree Financial, a managing general agency serving life insurance agents and clients in all parts of the United States. Today, Doug’s main focus is servicing 1000s of policyholders and growing the agency through the reach of