IUL Calculator
Model uncapped upside through participation rates, with a 0% index-crediting floor that protects against negative index returns.
Shape the scenario.
Download for educational use only. Results are estimates, not guarantees, quotes, offers, or carrier illustrations.
8.5% is the standard non-guaranteed rate used to estimate long-term growth in this tool. This single figure is an averaging convention for illustration only. In a real uncapped IUL policy, the credited rate is recalculated every policy year from that year's actual index performance multiplied by the participation rate, so some years credit well above 8.5% and some years credit 0% when the index falls.
Yearly crediting rates are not guaranteed, are not locked in by this estimate, and depend entirely on the market's year-by-year performance, your carrier's participation rate, and any policy charges. The 0% index-crediting floor protects against negative index years but does not guarantee a positive credit.
Total contributions
$150,000
Illustrated value
$314,737
Illustrated credit
6.80%
Non-guaranteed performance estimate. These illustrated values are educational projections, not guarantees of future policy performance. They assume a single fixed growth rate for simplicity, but an actual uncapped IUL credits a different rate every policy year based on that year's index performance. Your real cash value may be higher or lower than any scenario shown here, and policy charges, cost of insurance, participation rates, and funding can further change the outcome.
See the range, not just one number.
Uncapped scenarios apply the participation rate without limiting positive index performance.
| Year | Contributions | Low | Illustrated | High |
|---|---|---|---|---|
| 0 | $0 | $0 | $0 | $0 |
| 5 | $30,000 | $32,454 | $34,452 | $36,563 |
| 10 | $60,000 | $70,265 | $79,422 | $89,896 |
| 15 | $90,000 | $114,316 | $138,119 | $167,691 |
| 20 | $120,000 | $165,638 | $214,734 | $281,168 |
| 25 | $150,000 | $225,431 | $314,737 | $446,693 |
Ask about your projection.
Send your current assumptions and any question, and you will get a plain language walkthrough of how the projected growth was estimated, why the assumed rate is not guaranteed, and how yearly crediting moves with the market.
Your explanation will appear here. It covers the estimated growth, the non-guaranteed assumed rate, and how crediting varies year to year with index performance. It is educational only and is not a carrier illustration or advice.
How this compares to a Roth, a 401(k), and a brokerage account.
Same contributions, same 25-year window, same assumed market rate. The differences come from contribution limits, how each one is taxed, when you can reach the money, and what happens in a down year.
| Strategy | Contributions applied | Estimated value | Estimated after taxes | Death benefit |
|---|---|---|---|---|
| Uncapped IUL cash value | $150,000 | $314,737 | $314,737 | Yes, income tax free to beneficiaries |
| Roth IRA | $150,000 | $486,016 | $486,016 | No |
| Traditional 401(k) | $150,000 | $486,016 | $379,092 | No |
| Taxable brokerage | $150,000 | $483,510 | $433,484 | No |
Uncapped IUL cash value
Taxes
Cash value grows tax deferred. Properly structured policy loans are generally not taxable income.
Access before 59 and a half
Policy loans and withdrawals are generally available at any age, subject to contract terms.
Down markets
0% index-crediting floor on negative index years. Policy charges still apply.
Limits
No IRS contribution cap, but funding is limited by TAMRA and MEC rules for the death benefit chosen.
Roth IRA
Taxes
Qualified withdrawals after age 59 and a half are tax free.
Access before 59 and a half
Contributions can come out anytime. Earnings withdrawn early may be taxed and penalized.
Down markets
Full market exposure. A down year reduces the balance directly.
Limits
Capped near $7,000 a year, with income eligibility limits.
Traditional 401(k)
Taxes
Contributions reduce taxable income now. Withdrawals are taxed as ordinary income, estimated at 22% here.
Access before 59 and a half
Withdrawals before age 59 and a half usually carry a 10% penalty. Plan loans may be available.
Down markets
Full market exposure. A down year reduces the balance directly.
Limits
Capped near $24,500 a year. An employer match is real free money and is not modeled here.
Taxable brokerage
Taxes
Dividends and realized gains are taxed along the way, and remaining gains are taxed at sale, estimated at 15%.
Access before 59 and a half
Fully liquid at any age with no penalty.
Down markets
Full market exposure. A down year reduces the balance directly.
Limits
No contribution cap.
These are simplified educational estimates, not tax advice and not a carrier illustration. Tax rates are assumed at 22% ordinary income for pre-tax plan withdrawals and 15% on brokerage gains, and your actual rates will differ. Contribution limits shown are current reference figures and change over time. An employer match in a 401(k) is a real advantage and is not modeled here. Most families use more than one of these together rather than choosing only one, which is exactly what a consultation sorts out.
An estimate, not a carrier illustration.
These uncapped scenarios apply the selected participation rate to positive index performance and a 0% floor to negative index performance. The 0% floor protects against negative index crediting, but policy charges can still reduce cash value. Actual policy performance depends on carrier-specific fees, cost of insurance, participation rates, index-crediting methods, policy funding, loans, withdrawals, underwriting, and other contract terms. Staged or increased contributions are also limited by IRS TAMRA funding rules, and exceeding those limits can classify a policy as a Modified Endowment Contract (MEC), changing how loans and withdrawals are taxed. That is why any funding plan should be reviewed with a licensed professional. Values are educational estimates only, are not carrier illustrations or guarantees, and are not an offer or recommendation to purchase insurance.
Insurance services are offered in Alabama, Arkansas, the District of Columbia, Florida, Louisiana, Michigan, Mississippi, Missouri, New Jersey, Ohio, Oregon, South Carolina, Tennessee, Texas, Virginia, and West Virginia. Product availability, benefits, approval, premiums, and terms vary by carrier and state. Tax information is educational and is not tax advice.
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