How Old Is Too Old to Start an IUL? The Surprising Truth!

How Old Is Too Old to Start an IUL? The Surprising Truth!

Mar 06, 2025

The Myth About Age and IULs: Busted!


If you think you're too old to start an Indexed Universal Life (IUL) insurance policy, think again. Most people—even so-called experts—assume the older you are, the more expensive an IUL becomes. They’re dead wrong.


Here’s the truth: When structured correctly, an IUL can actually get cheaper as you get older.


You heard me right. Cheaper.


Why IULs Get Better With Age


💡 The Secret Sauce: Decreasing Insurance Requirements


The older you get, the less insurance you need under IRS guidelines like TEFRA and DEFRA. That means the cost of insurance drops, making your IUL a lean, mean, wealth-building machine.


💡 Returns Stay Strong


Whether you're a 20-year-old triathlete or a 78-year-old with a few health hiccups, a properly structured IUL can still net you returns of 11% (gross) and 10% (net). The trick is to squeeze down the death benefit and focus on cash accumulation.


Who Can Still Qualify for an IUL?


  1. Up to Age 80: Most insurers will offer an IUL up to age 80. In some cases, you can even backdate it to age 81.
  2. Even With Health Issues: Heart attacks, diabetes, past surgeries—don’t assume you're out of the running. You might be "rated" by the insurance company, but that can work in your favor. A lower death benefit means lower costs.


How It Works (And Why It’s Genius)


  • Minimize the Death Benefit: You’re not buying life insurance for the death benefit. You’re buying it for the living benefits—tax-free income, wealth building, and financial security.
  • Max Out the Cash Value: Stuff that IUL with as much money as the IRS allows, as quickly as possible. Your cash value grows tax-free, giving you a source of income that Uncle Sam can’t touch.
  • Lock in Your Gains: The best part? Any gains you make become newly protected principal. Your money grows, but it doesn’t go backwards—ever.


Real-World Example: How It Works for Seniors


A 78-year-old gentleman with a history of heart disease and diabetes thought he’d never qualify. We structured his IUL to:


  • Invest $500,000
  • Provide a $700,000 death benefit
  • Generate $50,000 per year in tax-free income immediately


This isn’t theory. This is real-life application.


Key Advantages of an IUL


  1. Tax-Free Income: Pull money out without paying taxes. Ever.
  2. Beating Inflation: Link returns to market indexes without market risk. Earn more as inflation rises.
  3. Principal Protection: Your gains are locked in, not exposed to market volatility.
  4. Legacy Planning: Leave behind a tax-free death benefit, creating generational wealth.


What If You Can’t Qualify?


Even if you’re uninsurable, you can still own an IUL. How? By taking out a policy on someone else—your spouse, child, or even a business partner. You still get all the tax-free growth and income, even if the insured isn’t you.


Final Word: Don’t Let Age (or Anything Else) Hold You Back


If you think you’re too old, too unhealthy, or too late to the game—think again. An IUL could still be your secret weapon for retirement, wealth building, and legacy planning.
You might be just one conversation away from transforming your financial future. Reach out today, and let’s see if an IUL is your perfect fit.


Take Action Now

If you want the kind of tax-free, risk-free growth that an IUL offers, don’t wait. Get in touch, and let’s get your strategy in place before it’s too late.