In a previous post, we discussed whole life vs Indexed Universal Life and now we will address indexed universal life insurance cost also known as IUL.

As a consumer you know that one of the most important aspects to consider is: the Cost. Even though there are other very important variables in an IUL, cost is on top of that list.

First we need to consider two simple questions for anyone looking for Index Universal Life:

  • How much does IUL cost?
  • How much coverage do I need?

In reality, these two questions will help determine what direction you should take when buying the right IUL policy.

Let’s go over some of important considerations. 

Factors that Impact Your Cost 

There are no deals or discounts on life insurance. However what you can do is pick the right company for your situation.

Every company has different standards on who they want as a client. So it is the job of your life insurance broker to know who to pick on your behalf.

Here are the factors that affect your Indexed Universal life insurance premium:

  • Just like any life insurance, rates are cheaper when you are young. The older you get the more you will pay.
  • Also health plays a significant part in cost. The healthier you are the cheaper the policy.
  • Are you a smoker? Tobacco rates will significantly increase your cost.
  • Women have much lower rates that men, as on average they live longer than men.
  • Some companies offer no exam indexed universal life insurance. If you do not want to do a medical exam your will pay a higher premium.
  • The company you pick. As we already mentioned each company has different standards and ratings.
  • The details of each policy: Caps, Floors, Participation Rate & Indexing Method.

Since there are so many factors that impact your cost, including the company and your overall personal and health profile, you won’t know how much you’ll be asked to pay until you receive quotes from multiple providers. 

Average Indexed Universal Life Insurance Cost 

We are going to give you some average indexed life insurance cost for different ages next. However, the purpose of the charts is to give you an idea of the price ranges, not to be a quote.

Please remember all of the prices can change based on all of the factors we already mentioned. For our charts we use an A rated company with good pricing and product. 

IUL $250,000 cost, excellent health & non-smoker

Male Quote 

Age Monthly Price Cash Value @ 65
30 $164.17 $222,075
35 $205.42 $190,088
40 $258.33 $158,738
45 $336.04 $129,061
50 $435.66 $93,052
55 $584.75 $63,880
60 $777.91 $37,970

Female Quote 

Age Monthly Price Cash Value @ 65
30 $145.41 $193,841
35 $180.83 $166,248
40 $225.83 $136,521
45 $292.25 $100,384
50 $376.00 $87,364
55 $501.92 $63,016
60 $665.00 $39,358

As you can see in the previous tables, there is a large increase in price if you wait a few years. Also as you have less time to accumulate cash the cash value is lower. So if you are considering an IUL, you shouldn’t wait as the biggest factor for cost is age.

The reason that we created the table is because we get the question very often:

How much does Indexed Universal Life insurance cost?

Most of the time the answer to the question is: It Depends…

However, we wanted you to have a starting point to understand cost. There are still many factors to consider before you purchase, but now you have a base.

If you would like to get a whole life insurance quote, just use our whole life insurance quoter:


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Indexed Universal Life Non Medical Cost

Some of our clients do not want to do a medical exam. So they opt for a non-medical IUL. We will show you a few examples of IUL’s without Medical exam:

  • Simplified Issue
  • Guaranteed Issue


In a non medical life insurance, you will not have to do a blood and urine test. The insurance company will still look into your medical history if it’s necessary. However, their rating will be based on answering a few health questions.


You will end up paying a little more than if you took the medical option.

Who Should Do It?

If your health is average, and you are not in excellent shape, it may be a good option for you. In addition, if you haven’t been to the doctor in a while, it may be better just to go the non-medical route.

Cost Of Non Medical IUL

As we did previously here is a table for your reference. This is not an exact quote but it will help you get an idea: 

Male $250,000 Non Medical IUL Cost

Age Monthly Premium: Cash Value @ 65:
30 $179.08 $180,507
35 $215.92 $167,033
40 $266.16 $132,791
45 $323.66 $109,300
50 $417.85 $82,720
55 $526.29 $58,063


Female $250,000 Non-Medical IUL Cost

Age Monthly Premium: Cash Value @ 65:
30 $154.25 $155,805
35 $188.12 $136,764
40 $229.60 $117,814
45 $289.92 $96,960
50 $361.32 $77,176
55 $458.36 $54,761

A non-medical IUL is a great product that can work for many clients. If you would like a quote go here:


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Price Is Not Everything

Unlike term insurance, IUL is an asset with many moving parts. There are many variables you need to consider like:

  • Cap Rate
  • Participating Rate
  • Floor
  • Indexing Method

These variables can turn a cheap IUL into a bad long term investment. So many times paying a bit more will get you significant cash value growth over the long run. It is not easy to compare all these variables, that’s why our agents can help you get the best quote.

In addition, you should consider overfunding an IUL to get more cash value growth.

Final Note

Now you should have a better idea of IUL prices. As you can see rates go up significantly as you age. So make sure you lock in your rates as soon as possible.

However, as we mentioned price is not the full story, so make sure you request a quote from multiple companies from an expert.

If you want a quote from our experts go here: Give Me An IUL Quote

You may want to go over our article: Whole Life Insurance Cost

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  • david robinson says:

    I have a USAA UL policy issued in 1982. The guaranteed interest rate is 4.5 %. I have overfunded this policy almost from inception. Could y evaluate this policy and provide recommendations for going forward.


    david robinson

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