Indexed Universal Life (IUL) Insurance Rates By State In America
The cost of indexed universal life insurance can vary significantly from state to state. The good news is that we have included indexed universal life insurance rates by state for all 49 jurisdictions (New York excluded, DC included).
Let’s discover which states have the most affordable indexed universal life insurance and take a look at some of the most expensive and most cost-effective states for IUL coverage.
Key Takeaways: Lowest IUL premiums: Colorado ($2,515), DC ($2,530), and New Jersey ($2,566).
Highest IUL premiums: Mississippi ($3,227), West Virginia ($3,218), and Louisiana ($3,213).
National average cost: $2,812 per year ($234 per month) for a healthy 35-year-old with $500,000 in coverage.
How Much Does Indexed Universal Life Insurance Cost By State? The national average cost of Indexed Universal Life Insurance is around $2,812 per year for a healthy 35-year-old with $500,000 in coverage. IUL premiums typically cost 15-30% more than term life insurance due to the investment component and cash value accumulation features.
How Much Does IUL Insurance Cost Per Month? The national average cost of indexed universal life insurance is around $234 per month in the United States for a $500,000 policy on a healthy 35-year-old; however, keep in mind that your rates may vary. Rates are state-specific and company-specific, so it’s best to compare quotes before finalizing a policy.
Average Cost Of Indexed Universal Life Insurance Rates By State IUL Insurance costs vary significantly from state to state. The most expensive state for indexed universal life insurance is Mississippi ($3,227), while the most affordable is Colorado ($2,515).
IUL Insurance Rates By State Chart STATEANNUAL PREMIUMSTATEANNUAL PREMIUMAlabama$3,092Montana$2,825Alaska$2,843Nebraska$2,882Arizona$2,786Nevada$2,898Arkansas$3,135New Hampshire$2,659California$2,658New Jersey$2,566Colorado$2,515New Mexico$3,083Connecticut$2,594North Carolina$2,910DC$2,530North Dakota$2,859Delaware$2,784Ohio$2,989Florida$2,756Oklahoma$3,116Georgia$2,936Oregon$2,842Hawaii$2,621Pennsylvania$2,863Idaho$2,798Rhode Island$2,762Illinois$2,717South Carolina$2,996Indiana$2,997South Dakota$2,742Iowa$2,943Tennessee$3,039Kansas$2,904Texas$2,853Kentucky$3,051Utah$2,678Louisiana$3,213Vermont$2,671Maine$2,814Virginia$2,769Maryland$2,697Washington$2,691Massachusetts$2,574West Virginia$3,218Michigan$2,959Wisconsin$2,880Minnesota$2,748Wyoming$2,888Mississippi$3,227Missouri$2,937 What Are The 7 Most Affordable States For Indexed Universal Life Insurance? Colorado – $2,515 per year No state income tax on retirement benefitsLow natural disaster risk=lower insurance costsCompetitive market with 15+ major carriersHealthy population demographics reduce claims District of Columbia – $2,530 per year High competition from tri-state area carriersNo state premium tax on life insuranceWealthy, educated population=lower risk profileAccess to federal employee group rates New Jersey – $2,566 per year Dense population spreads carrier costs efficientlyStrong regulatory framework prevents overpricing20+ licensed carriers create competitionHigh median income=stable premium payments Massachusetts – $2,574 per year Strict insurance regulations cap excessive pricingExcellent healthcare system reduces mortality riskHigh education levels correlate with better health25+ carriers licensed in state Connecticut – $2,594 per year No state tax on life insurance benefitsWealthy population=lower lapse ratesStrong financial services sector presenceProximity to NYC increases carrier options Hawaii – $2,621 per year Longest life expectancy in US=lower payoutsHealthy lifestyle and diet cultureLimited but stable insurance marketLow crime rates reduce risk factors California – $2,658 per year Largest insurance market=maximum competitionStrict Department of Insurance rate oversightDiverse economy reduces systemic riskTech sector wealth drives premium volume What States Have the Highest IUL Insurance Rates? As you will see below, indexed universal life insurance rates can vary significantly by state, with Mississippi having the highest annual premium at $3,227 and Colorado having the lowest at $2,515.
STATEMONTHLY PREMIUMMississippi$269.00West Virginia$268.17Louisiana$267.75Kentucky$254.25Tennessee$253.25Arkansas$261.25Oklahoma$259.67 IUL Insurance Cost vs. Other Life Insurance Types Indexed universal life insurance serves different purposes and comes with different costs compared to other life insurance products. Let’s compare them:
Is IUL More Expensive Or Cheaper Than Term Life Insurance? IUL insurance is significantly more expensive than term life insurance. This is because IUL policies include an investment component and build cash value over time. On average, IUL insurance costs about 8-12 times more than term life insurance for the same death benefit amount.
Is IUL More Expensive Or Cheaper Than Whole Life Insurance? IUL insurance is typically 10-20% less expensive than whole life insurance. While both offer permanent coverage and cash value accumulation, IUL policies provide more flexibility in premium payments and potentially higher returns tied to market indices.
Is IUL More Expensive Or Cheaper Than Variable Life Insurance? IUL insurance costs are generally similar to variable life insurance, though IUL policies often have slightly lower fees and provide downside protection that variable life policies may lack.
Who Has the Best IUL Insurance Rates By State? Ethos stands out as our top choice nationwide for indexed universal life insurance due to its competitive pricing, streamlined digital application process, and comprehensive coverage options. While rates vary by state due to factors like mortality rates, state regulations, and local market conditions, Ethos consistently offers some of the most competitive rates across all 50 states.
Top IUL Providers By State Quick Review: Ethos: Our primary recommendation nationwide with competitive rates across all states, streamlined digital application process, and excellent customer service
Pacific Life: Excellent rates in Western states (CA, NV, AZ) with strong index options and competitive caps
Allianz: Competitive nationwide with innovative indexing strategies
Lincoln National: Strong presence in Midwest and Eastern states
Nationwide: Good rates for younger applicants across most states
Transamerica: Competitive options in Southern states
What Factors Affect IUL Insurance Rates? Age – Younger applicants receive significantly lower rates
Health Status – Medical exams and health history impact pricing
State Regulations – Some states have stricter insurance regulations
Gender – Women typically pay slightly less due to longer life expectancy
Death Benefit Amount – Larger policies may qualify for preferred pricing
Policy Features – Additional riders increase premiums
Insurance Company – Each insurer has different underwriting standards
What Is Indexed Universal Life Insurance? Indexed Universal Life Insurance is a type of permanent life insurance that combines a death benefit with a cash value component tied to the performance of stock market indices. IUL policies offer the potential for higher returns than traditional universal life insurance while providing downside protection through guaranteed minimum interest rates.
What Does IUL Insurance Cover Or Provide? Death Benefit Protection: Provides tax-free death benefit to beneficiaries, with flexible death benefit options that can increase or decrease based on your needs.
Cash Value Accumulation: Builds cash value over time based on the performance of selected market indices, with downside protection ensuring you won’t lose money in down markets.
Flexible Premiums: Allows you to adjust premium payments within certain limits, providing financial flexibility as your circumstances change.
Tax Advantages: Tax-deferred cash value growth
Tax-free death benefits to beneficiaries
Potential for tax-free loans and withdrawals from cash value
What IUL Insurance Does NOT Cover Or Provide Direct market participation – You don’t own actual stocks or bonds
Guaranteed high returns – Returns are subject to caps and participation rates
Immediate high cash values – Cash value builds slowly in early years
Investment control – You cannot actively manage the investments
IUL vs. Other Investment Options IUL INSURANCETRADITIONAL INVESTMENTSTax-deferred growth with life insuranceTaxable investment gainsDownside protection with upside potentialFull market risk exposureDeath benefit includedNo life insurance componentLimited liquidity in early yearsGenerally more liquid Who Are the Best IUL Insurance Companies? Choosing the right insurance company is crucial for getting the best coverage at competitive rates. Here are some of the top companies offering indexed universal life insurance:
Ethos Ethos is our primary recommendation for indexed universal life insurance. They specialize in modern, tech-driven life insurance solutions with competitive rates across all states. Their streamlined digital application process, excellent customer service, and comprehensive IUL products make them the top choice for most applicants.
Pacific Life Pacific Life is highly rated for IUL products, offering multiple index options and competitive participation rates. They provide strong financial stability and excellent customer service.
Allianz Life Allianz offers innovative IUL products with unique indexing strategies and volatility controls. They’re known for competitive rates and flexible policy features.
Lincoln National Lincoln Financial provides solid IUL options with strong index crediting strategies and competitive pricing, particularly in the Midwest and Eastern regions.
Nationwide Offers competitive IUL products with good rates for younger applicants and flexible premium options across most states.
Transamerica Provides competitive IUL policies with multiple index options and strong customer service, particularly competitive in Southern markets.
What Are the Different Types Of IUL Coverage Options? There are different index crediting methods and policy structures available with IUL insurance:
Point-to-Point Method Credits interest based on the index performance from one anniversary date to the next, offering simplicity and straightforward crediting.
Monthly Sum Method Averages the monthly index performance over the year, potentially reducing volatility in crediting.
Monthly Point-to-Point Method Credits interest monthly based on index performance, providing more frequent crediting opportunities.
What IUL Life Insurance Is Best For My Needs? The best IUL insurance depends on your specific financial goals:
Wealth Transfer Planning: Pacific Life or Allianz: Strong index options for long-term growth
Retirement Income Supplement: Lincoln National or Nationwide: Good loan provisions and cash value access
Estate Planning: Prudential or Pacific Life: Strong death benefit options and estate planning features
Young Families: Ethos Life or Nationwide: Competitive rates for younger applicants
What To Look For In An IUL Provider Financial Strength Ratings: Look for A.M. Best ratings of A or higher
Index Options: Multiple indices provide diversification opportunities
Participation Rates: Higher participation rates mean more upside potential
Caps and Floors: Competitive caps with reasonable floor guarantees
Policy Flexibility: Options to adjust premiums and death benefits
Customer Service: Strong claims payment history and customer support Is IUL Insurance Worth It? Whether IUL insurance is worth it depends on your specific financial situation:
IUL May Be Right If You: Need permanent life insurance coverage
Want potential for higher returns than whole life
Desire downside protection in market downturns
Have maximized other tax-advantaged accounts
Understand the complexity of IUL products
Consider Alternatives If You: Only need temporary coverage (consider term life)
Want guaranteed returns (consider whole life)
Prefer simpler investment options
Have limited premium budget Taking Action Now that you have a better understanding of indexed universal life insurance rates and coverage options, it’s time to take action. Protecting your family’s financial future is crucial, and finding the right IUL policy can provide both death benefit protection and potential cash value growth. Compare quotes from multiple insurers to find the best rates for your situation.
Frequently Asked Questions Why is IUL Insurance more expensive than term life?
IUL insurance is more expensive because it combines life insurance with an investment component. The policy builds cash value over time and provides permanent coverage, unlike term life which is temporary coverage only.
Who gives the best IUL Insurance rates?
Several companies offer competitive IUL rates, including Pacific Life, Allianz, Lincoln National, and Nationwide. Each company has different strengths, so it’s important to compare quotes and policy features to find the best fit for your needs.
How much is IUL Insurance in the US?
The cost of IUL insurance varies widely based on age, health, location, and coverage amount. On average, a healthy 35-year-old might pay $200–$400 per month for a $500,000 IUL policy. It’s important to get quotes from multiple insurers to find the best rate for your specific situation.
Article Source
Information contained on this page is provided by an independent third-party content provider. This website make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact editor @producerpress.com
