IUL basics

IUL Insurance Companies: How to Compare Companies and Policies

We don't rank IUL insurance companies. Compare each policy's illustration, charges, surrender terms, loans, financial strength and state license instead.

Reviewed by Brian Carrozzi

Founder, RestAssured · Licensed life insurance agent

Updated October 27, 2026 · How we write and review

Key takeaways

This guide doesn’t name or rank IUL insurance companies. The Texas Department of Insurance says “Rates vary by company” and advises, “Don’t choose a policy on price alone.”
The NAIC says a basic illustration “shows both guaranteed and non-guaranteed elements,” and the Texas Department of Insurance says cash value charts “aren’t a promise of a policy’s performance.”
NY DFS says that with universal life, the insurance company “can increase mortality and expense charges,” and TDI says “If the cash value reaches zero, your policy could lapse.”
Before you buy, check the company’s financial rating and complaint history and confirm that the agent and company are licensed in your state. Texas policies have a free-look period of at least 10 to 20 days, according to TDI.

Short answer: This page doesn’t name or rank IUL insurance companies or publish a “best IUL” list. The Texas Department of Insurance (TDI) says “Rates vary by company” and “Don’t choose a policy on price alone.” Instead of picking a company from a top 10 list, compare each policy’s illustration, charges, surrender terms and loan rules, then check the company’s financial rating, complaint record and license in your state.

If you’re new to how these policies work, start with what IUL insurance is and how it works.

Who offers IUL insurance?

FINRA describes indexed universal life (IUL) as a type of universal life insurance that “follows a set stock index (such as the S&P 500) rather than allowing policyholders to choose their investments,” and says it “is generally not considered a security.”

Whoever offers you a policy, check both the agent and the company. TDI says “Make sure the agent and company are licensed to sell insurance.” FINRA says to “verify that the person offering you insurance is properly licensed” and that “To check insurance licensing, contact your state insurance commissioner.”

Why isn’t there a “best IUL insurance company”?

TDI says “Rates vary by company,” advises you to “Get quotes from several companies,” and adds, “Be sure the policies you compare offer similar coverage.” FINRA says “insurance products can be complex and come with fees, so it pays to do your homework before you buy.”

FINRA says: “Be sure your investment professional fully understands your financial situation and goals” before you buy. RestAssured doesn’t give tax or investment advice.

How do you compare IUL illustrations?

The National Association of Insurance Commissioners (NAIC) says the basic illustration “is used in the marketing of the policy and shows both guaranteed and non-guaranteed elements.” It says guaranteed elements include “policy benefits, premiums, values, credits, and charges,” and that “Each of these elements has a non-guaranteed counterpart in the basic illustration.”

For policies tied to an index, the NAIC says Actuarial Guideline 49-A applies to policies “Sold on or after December 14, 2020,” and “Revisions to AG 49-A became effective in 2023 to tighten illustration limits and in 2026 to enhance consumer-protection disclosures.”

TDI says “Agents often use charts to show how a policy’s cash value might grow,” and “These are usually projections and aren’t a promise of a policy’s performance.”

When comparing illustrations:

Put the guaranteed columns side by side first, and ask when each policy would lapse on guaranteed values alone.
The NAIC says “The illustration must be provided prior to or simultaneously with the policy delivery.” After the first policy anniversary, it says the owner may request periodic updates (in-force illustrations).

What can the insurance company change after you buy?

Get these answers in writing. Here’s what regulators say about charges and crediting in universal life:

Charges. The New York State Department of Financial Services (NY DFS) says “the company deducts from the cash value account its expenses and the cost of insurance protection,” “the mortality charges increase, as you become older,” and “the insurance company can increase mortality and expense charges.”
Crediting. NY DFS says that with universal life, “the interest rate and expense and mortality charges payables initially are not guaranteed for the life of the policy.”

The NAIC Buyer’s Guide suggests asking: “What part of the premium or policy value isn’t guaranteed?”

How do fees, surrender charges and loans compare?

What to compare	What regulators say	What to ask each company
Charges	NY DFS: the insurer deducts “its expenses and the cost of insurance protection” from the cash value	What is every charge, and what is the maximum the policy allows?
Surrender charges	NY DFS: you “may receive less than the cash value account because of surrender charges”; TDI: you “might have to pay a surrender fee if you withdraw the money early”	How long do surrender charges last, and what would I get back in each year?
Loans	TDI: “If you don’t pay back the loan, it will lower the amount of the death benefit”	What is the loan interest rate, and what happens if the policy lapses with a loan outstanding?
Lapse risk	TDI: “If the cash value reaches zero, your policy could lapse”	How much premium keeps the policy in force on guaranteed values?
Funding	NY DFS: “you will need to actively manage the policy to maintain sufficient funding”	What happens if I pay less than the planned premium?

Ask a tax advisor about the tax side of any loan or withdrawal before you take it. For a fuller list of trade-offs, see IUL insurance pros and cons.

How do you check an IUL company’s financial strength?

The Washington State Office of the Insurance Commissioner says to check the insurance company’s financial rating before you buy an insurance policy. It lists A.M. Best, Fitch, Moody’s, Standard & Poor’s and Weiss Ratings, and says “These financial rating services rank insurance companies based on their financial strength and stability.” It also cautions: “Be aware that not all financial rating companies use the same rating processes.”

TDI says: “Check a company’s financial rating and complaint history.”

How do you check complaints and licenses?

Complaints. The NAIC says it “compiles closed, confirmed complaint information about insurance carriers from state insurance departments.” Through its Consumer Insurance Search, “You can look up information by state, company, and insurance type for the past three years.” The NAIC adds: “You should not use just one factor to decide which insurance company to use,” and “You should compare the complaints, financials, and direct premiums written of several companies.”
Licenses. TDI says “Make sure the agent and company are licensed to sell insurance,” and offers a “Look up a company or agent” feature. In other states, FINRA says to contact your state insurance commissioner.

What is the free look period?

The NAIC Buyer’s Guide says you “can return it for a full refund within a certain period, usually 10 days after you receive it,” and “The review period usually is stated on the first page of the policy.” TDI says “Texas policies have a free-look period of at least 10 to 20 days.” Check your own policy for the exact length.

If the IUL would replace coverage you already have, the NAIC says “Don’t cancel your current policy until you get the new one.” If you’re weighing IUL against other permanent coverage, see IUL vs. whole life insurance.

Checklist: questions to ask about any IUL company and policy

Which insurance company issues this policy, and is it licensed in my state?
Is the agent licensed in my state?
If I pay only the planned premium, how long does the policy last on guaranteed values?
What assumptions drive the non-guaranteed columns?
Does the policy use a cap, participation rate or floor? What are the guaranteed minimums, and how often can the company change them?
What is the full list of charges, and which ones can the company increase?
How long do surrender charges last, and what would I get back if I surrendered in each of those years?
How do policy loans work, and what happens if the policy lapses with a loan outstanding?
What financial rating does the company hold, and from which rating service?
How long is my free look period?
Why does this policy fit my financial situation and goals? To talk it through with a licensed agent, call (888) 603-7464.

The bottom line

This guide doesn’t name or rank IUL insurance companies. TDI says rates vary by company and projections “aren’t a promise of a policy’s performance,” and NY DFS says the insurer “can increase mortality and expense charges.” Compare guaranteed values, charges, surrender terms and loan rules side by side, then check each company’s financial rating, complaint record and license before you decide.

A licensed agent can go over these points for your age and state. The licensed agents who work with us offer IUL policies: call (888) 603-7464 to compare options and get a quote, with no obligation. Here’s how calling RestAssured works.

RestAssured is not an insurance company or an insurance agency; we connect callers with independently licensed insurance agents. RestAssured doesn’t give tax or investment advice.

Frequently asked questions

What are the top 10 IUL insurance companies?

This guide doesn’t publish a top 10 list or rank any company. The Texas Department of Insurance says “Rates vary by company” and “Don’t choose a policy on price alone,” so compare each policy’s guaranteed values, charges, surrender terms and the company’s financial rating and license.

What is the best IUL on the market?

This guide doesn’t rank IUL policies. Compare the guaranteed and non-guaranteed columns of each illustration, the full list of charges, the surrender charge schedule and the loan terms, because TDI says projections aren’t a promise of a policy’s performance.

Who sells IUL insurance?

Ask which insurance company issues the policy, and check both the company and the agent. FINRA says to verify that the person offering you insurance is properly licensed, and to check insurance licensing, contact your state insurance commissioner.

How do I check an IUL insurance company's complaint record?

The NAIC compiles closed, confirmed complaint information from state insurance departments, and its Consumer Insurance Search lets you look up information by state, company and insurance type for the past three years. The NAIC also says you should not use just one factor to decide which insurance company to use.

Is IUL insurance a security?

FINRA says indexed universal life is generally not considered a security. To check insurance licensing, FINRA says to contact your state insurance commissioner.

Sources

This article is for general education. Policy features, prices and eligibility vary by insurance company and state; your agent will explain the specific terms of any policy before you apply.