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5 Best IUL Companies for Cash Accumulation

Best Life Insurance Companies for Infinite Banking
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.

 10 minute read

How do you know who the best IUL companies are?  There are a lot of IUL companies available to choose from.  Making sure you pick the best IUL policy is important.  Let’s discuss the important features needed to ensure the IUL policy you pick will live up to the test of time and how to open your first IUL account.

First off, indexed universal life insurance policies were created back in 1997.  We now have almost 30 years of IUL history to learn from. We are still excited about using indexed universal life insurance to accumulate cash on a tax-deferred basis and take an income stream on a tax-free basis.  The process is often referred to as a LIRP.

We have clients from many different occupations, income levels, and ages who use indexed universal life insurance not only as life insurance but also as a retirement income tool.

We purchase life insurance to pay off our debts and replace our income due to premature death.  We purchase life insurance to take care of our family or business partners if we die too soon.

The death benefit of life insurance can help your family get through a difficult time by providing cash when it is needed the most.

Our clients buy an IUL account to build up cash value to use as a supplemental tax-free retirement income.  To better understand how much tax-free income an IUL can generate, use our IUL calculator.


Best IUL Companies for Cash Accumulation (Top 5) 

Our top 5 best IUL companies for cash accumulation are listed below.  Others are worth noting. However, these five excel in cash accumulation and tax-free income distribution.  When deciding which companies make the list, we look for:

  • Company Ratings
  • Comdex ratings
  • Unique IUL accounty Features
  • Policy Loan Flexibility
  • 20-year and 40-year costs
  • Index Allocation options
  • IUL account Dealbreakers


Allianz IUL Account

Allianz Life is a premier choice and has one of the best IUL accounts, particularly for tax-free retirement planning. The Allianz flagship IUL policy is the Life Pro+ Advantage.  Allianz Life is one of the best IUL companies to choose from.

What we like about Allianz:

  • Life Pro+ Advantage has a unique rate lock feature.  Rate lock gives the policy owner the ability to lock in its index value at any point of the year if they are happy with the current return. Once locked in, there is no worry about how the index performs for the rest of the year.
  • Index allocations include the normal S&P 500 index, Bloomberg US Dynamic Balance, Pimpco Tactical Balanced, and a Blended index.  In total, there are 15 indexed and one fixed allocation spread your premium into 
  • Loan options include an indexed policy loan with a guaranteed 5% rate and a fixed loan option.
  • Great advanced planning department for assistance with business and estate planning like Executive Bonus, Split Dollar, Buy-sell agreements, and key employee strategies.

What we don’t like:

  • No term policies. Although Allianz doesn’t offer a stand-alone term life policy, a term rider can be added to Life Pro+ Advantage to help offset some of the upfront costs in the policy. 

Allianz’s commitment to financial strength and stability reassures policyholders of the company’s ability to meet long-term obligations.


North American IUL Account

North American is highly regarded for its competitive pricing and strong performance, especially in IUL policies. Their focus on long-term cash value accumulation is a significant advantage for savers seeking tax-free income solutions.  The flagship IUL policy for retirement income planning is the Builder + 3.

Why is North American one of the best IUL companies?

  • Term policies that are convertible to any of the IUL policy options available.
  • 3 loan options available.  Fixed participating loans, variable loans, and standard policy loans.
  • The current market focus is family planning and business planning.  Advanced planning now includes split dollar plans, executive bonus, buy-sell agreements, and REBA (restricted executive bonus arrangements)
  • North American has a unique employee-owned company structure. 

What we don’t like:

  • No premium financing availability.
  • Renewal rate history

With a strong track record of financial stability, the company is a solid choice for those prioritizing consistent growth and reliability in their retirement planning.


Lincoln Financial IUL Account

Lincoln Financial stands out in the IUL landscape with its diverse product offerings that cater to a wide range of retirement needs and preferences. Lincoln has several IUL policies available, but we like the Wealth Accumulate 2.

What we like about Lincoln:

  • Strong in advanced planning such as Split-dollar, executive bonus, and key person funding.
  • Many index allocations from S&P 500 to Fidelity AIM.
  • A go to company for premium financing
  • Offers both fixed and variable loan options

What we don’t like:

  • Only quarterly or annual sweep to index accounts
  • Term conversion options are limited after 5 years

Lincoln’s commitment to financial strength further adds to its appeal as a dependable provider for retirement income planning.


Ameritas FLX IUL Account

Ameritas distinguishes itself in the IUL market through its flexible premium options and innovative policy features. Ameritas has one IUL account offering called the Ameritas FLX.

What we like about Ameritas:

  • The small policy face amount of $50,000 makes it suitable for lower premium commitments. 
  • Lifetime income rider guarantees income
  • Strong living benefits for chronic and critical illness

What we don’t like:

  • Expense charges are high at older ages
  • 7% premium charge is high
  • Rate classes are confusing

Ameritas company’s focus on personalized solutions and policyholder satisfaction makes it an attractive choice for those seeking to add IUL to their financial strategy.


National Life Group IUL Account

National Life Group has earned its place among one of the best IUL plans by prioritizing policyholder benefits and exceptional customer service. Their flagship product is the SummitLife IUL.  SummitLife is for higher net-worth consumers in need of at least $1,000,000 of life insurance coverage.  This makes for higher funding limits.  If lower funding limits are desired, the FlexLife IUL would be used as their minimum death benefit is only $50,000.

What we like about National Life Group:

  • Strong ratings and Brand Recognition
  • Strong living benefits
  • Lifetime income benefit rider

What we don’t like:

  • Bonus is not guaranteed
  • Bonus is not paid on loans
  • Must keep 1 year of expenses in fixed account

The company’s financial stability and dedication to delivering value to its policyholders make it a trustworthy and effective choice for securing a tax-free retirement income strategy.


Which IUL Companies are best for you?

In addition to the death benefit, a great reason to own Indexed universal life insurance is for the potential tax-free income that can be generated during retirement.  Which are the best IUL life insurance companies? This is a very important question since these purchases are very long-term and need to perform well to reap the most benefit. Certainly, it makes good sense to find the top-rated life insurance companies because they will live up to their promises.

We offer indexed universal life from many of the top carriers. We can design an IUL model around your personal financial goals. Just use the IUL estimator on this page to see some numbers.

There are over 40 carriers in the indexed universal life marketplace today.  Each of those carriers may have several different policies that they offer.   We can only recommend a handful of these carriers, which we consider to be the best-rated life insurance companies for IUL.


How do we determine the best IUL Companies?

Let’s look at the nine areas that I see are most important in choosing an indexed universal life policy.

  1. Ratings – Each year, insurance companies are rated by 4 major rating agencies for their financial strength and ability to pay claims. AM Best and Comdex ranking is what we pay the most attention to.  The higher the AM Best and Comdex rating, the better.  AM Best top is A++, and Comdex best is 100, so let’s ensure we use the top-rated life insurance companies for your IUL.

  2. Index Caps – Index caps are important to the performance opportunity in the policy. The higher the cap, the more interest you can earn.  The most used and simplest to understand S&P 500 index allocation.  The range of these caps is currently around 9%.   These caps can change, so it is important to use a carrier that has historically held caps steady.  It is also important to use a carrier that has many index options, including uncapped options.
  3. Money Sweep Policy – It is very important to have your premium dollars go to work for you as soon as possible. The sweep options are daily, monthly, quarterly, and yearly.  We prefer daily sweeps so that no matter when you send your premium, your money goes to the indexing account. 
  4. Low Policy Expenses – Over the course of 20 – 40 years, policy expenses can add up. A recent comparison by Brett Anderson of IULDIGEST of policy expenses for a 50-year-old male preferred non-smoker showed a range of $31,000 to $81,000 over a 20-year period.  That is a $50,000 difference from the cheapest to the most expensive.  The companies we have listed are in the low-expense category.
  5. Accelerated Benefits – These are chronic, critical, and terminal illness benefits and allow the policy owner to accelerate a portion of the death benefit should they experience any of the above. Again, these carriers all have strong accelerated benefits.
  6. Loan options – This is an essential feature to look for in an Indexed Universal Life policy if you intend on using your policy as an income supplement. There are three main types of loans: fixed, fixed participating, and variable.  When you borrow money against your policy, variable-rate loans allow your funds to stay allocated to the index options of your choosing, thereby continuing to earn interest credits. With fixed-rate loans, the portion of your money that you are borrowing against is moved to the fixed interest allocation within your policy.  Switching between these loan types is important because things change over 20 to 40-year periods, and you need flexibility.  You will also want to ensure your variable loan rate is capped.  Most of these loan rates are capped at 5% to 6%.  This means that the interest rate that your loan is charged will never be above the cap.  Historically, the rates charged have been close to 8%, so being capped at 6% is important.
  7. Interest Bonus – Some policies offer an interest rate bonus after several years. Some carriers guarantee an additional bonus interest rate on top of what your policy earns yearly.  Most start in year 11 and can be as much as 1%.  Go for the guarantee and ensure that this bonus is paid on all values in the policy.  Most companies do not pay this bonus on funds that have been borrowed.  
  8. Interest Multipliers – Interest multipliers are game-changers.  This new feature can add an interest rate bonus of 10% to your policy based on the index growth for the year.  
  9. Overloan Protection – The last thing you want to happen to your policy is for it to lapse while you have a loan against it. At that point, the loans would be taxable to you.  Make sure that you choose a carrier that offers an overloan protection rider.  All the carriers listed have one, so rest assured that your policy will not lapse due to borrowing too much money.


Best IUL Company Ratings

Listed are our top choices for IUL for building cash value and highest illustrated tax-free income. The companies are listed in order for highest illustrated distribution at retirement.
CompanyYear EstablishedComdex RankingAM Best RatingPolicy Name
Allianz Life197993A+Life Pro+ Advantage
North American 188689A+Builder Plus IUL 3
Lincoln National190582AWealth Accumulate
Ameritas188779AFLX Living Benefit
National Life184890A+Summit Life

If the highest income is the main goal for your policy, then currently in first place is the Allianz Life Pro+.  We value the rate lock features they offer.

This indexed UL policy has multiple index allocations managed in-house by Allianz using its dynamic hedging program. Loan options are indexed and fixed, and you can move from one to another depending on what the year looks like.  Allianz offers a classic index with a .9% guaranteed bonus, so you never have a zero interest rate year.

Here is a brief overview of the Allianz Life Pro+:


Compare the best IUL Companies.

So, it comes down to policy design.  We design our plans around your savings goals.  

When you compare each IUL company apples to apples, it is easy to see which carrier will work the best for you. 

The policy designs we build out for you will include:

  • Key definitions of an IUL policy
  • Living benefits included
  • Ledger of cash value and tax-free income distribution amounts
  • Expense reports and IRR reports
  • A personalized review of the IUL illustration with one of our team

How to buy an IUL account?

First, a discovery call with you is needed to understand your financial picture.  We can then prepare a personalized indexed universal life illustration for you to review. This IUL illustration will show the premiums paid into your policy, indexed interest earned each year, accumulation value, death benefit and tax-free distributions.

Second, we need to spend some time with you to review your illustration.  The illustration can be lengthy.  We suggest a zoom call to run through your numbers and answer your questions.  During this call, you may want to see some alternate illustrations.  We will make adjustments and review those with you.

Thirdly, when you are comfortable with how the IUL policy works, we can proceed to start the IUL application process.

Each IUL company is a little different, and each has its own way of opening an IUL account.  We will use an e-application process to open your IUL policy.

Many great policies are available, and we have helped thousands of clients choose the right policy.  Let us help you understand all the ins and outs of an IUL and how to open your IUL account.


We're Here to Listen and Help
For more information about what indexed universal life insurance account is best for you and how to start your IUL account, call us at 1-800-712-8519 or use the IUL Estimator on this page.

Frequently Asked Questions

We have found that the following insurance carriers best meet the needs of our clients for Indexed Universal Life insurance.

  1. Allianz Life Pro+
  2. North American Builder Plus 3
  3. Lincoln Wealth Accumulate 2
  4. Ameritas FLX IUL
  5. National Life Summit Life

When we compare IUL policy expenses and fees that accumulate in an IUL over several decades with traditional retirement products, the IUL falls in line with traditional investments and in some cases they are much lower.

Check these 8 items to determine which carrier works best for you.

1. Index Cap and Floor rate
2. Money Sweep Policy
3. Low policy expenses and fees
4. Accelerated Benefits for chronic, critical, and terminal illness
5. Loan Options
6. Interest Bonuses
7. Interest multipliers
8. Overloan protection

It is very important to have your premium dollars go to work for you as soon as possible. The sweep options are daily, monthly, quarterly and yearly.  We prefer daily sweeps so that no matter when you send your premium your money goes to the indexing account. 

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