Ethos ranks as the best provider for indexed universal life insurance, earning top marks in every category. Still, the best choice depends on your personal goals and coverage needs. Below are the best indexed universal life insurance companies for different categories.
Best Indexed Universal Life Insurance (2025)
Ethos, Protective Insurance, Pacific Life and Legal & General offer some of the best indexed universal life insurance in 2025, according to MoneyGeek's analysis.
Find out if you're overpaying for life insurance below.
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Updated: November 13, 2025
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Key Takeaways
Ethos is the best indexed universal life insurance company overall for 2025, earning an overall MoneyGeek score of 5 out of 5.
Protective Insurance offers affordable policies, making it the best option for low-cost indexed universal life insurance.
Pacific Life offers the best coverage options, while Legal & General excels in customer experience.
Why You Can Trust MoneyGeek
We analyzed 188,496 quotes from indexed universal life insurance companies across a wide range of ages and demographic profiles. Licensed insurance expert and industry analyst Mark Fitzpatrick has reviewed our methodology, which focuses on affordability, customer experience, and coverage options. MoneyGeek maintains editorial independence and doesn't receive compensation from insurance companies for life insurance rankings or recommendations. For more information, read our full methodology.
Compare the Best Indexed Universal Life Insurance
Ethos | 5 | $328 (men) $275 (women) | $3,935 (men) $3,297 (women) | |
Protective Insurance | 4.7 | $325 (men) $280 (women) | $3,905 (men) $3,360 (women) | |
Pacific Life | 4.3 | $357 (men) $304 (women) | $4,280 (men) 3,652 (women) | |
Legal & General | 3.8 | $542 (men) $421 (women) | $6,501 (men) $5,501 (women) |
Rates above are based on our sample applicant profiles and MoneyGeek's 2025 analysis of indexed universal life insurance providers. Actual premiums will vary depending on your age, health, location, coverage needs and insurer underwriting guidelines. These rates are estimates for comparison purposes only. Contact insurers directly for personalized quotes and current pricing.
Best Overall
Ethos
MoneyGeek Rating
5/ 5
5/5Affordability
5/5Customer Experience
5/5Coverage Points
Average Monthly Cost
$328 (men); $275 (women)Based on average quotes for a $500,000 policy for 30- to 49-year-old nonsmokers with average weight and health ratings.Average Annual Cost
$3,935 (men); $3,297 (women)Based on average quotes for a $500,000 policy for 30- to 49-year-old nonsmokers with average weight and health ratings.
Most Affordable
Protective
MoneyGeek Rating
4.7/ 5
5/5Affordability
4.1/5Customer Experience
5/5Coverage Points
Average Monthly Cost
$325 (men); $280 (women)Based on average quotes for a $500,000 policy for 40-year-old nonsmokers with average weight and health ratings.Average Annual Cost
$3,905 (men); $3,360 (women)Based on average quotes for a $500,000 policy for 40-year-old nonsmokers with average weight and health ratings.
Best Coverage Options
Pacific Life
MoneyGeek Rating
4.3/ 5
4.7/5Affordability
3.3/5Customer Experience
4.7/5Coverage Points
Average Monthly Cost
$357 (men); $304 (women)Based on average quotes for a $500,000 policy for 40-year-old nonsmokers with average weight and health ratings.Average Annual Cost
$4,280 (men); $3,652 (women)Based on average quotes for a $500,000 policy for 40-year-old nonsmokers with average weight and health ratings.
Best Customer Experience
Legal & General
MoneyGeek Rating
3.8/ 5
3.2/5Affordability
5/5Customer Experience
3.3/5Coverage Points
Average Monthly Cost
$542 (men); $421 (women)Based on average quotes for a $500,000 policy for 40-year-old nonsmokers with average weight and health ratings.Average Annual Cost
$6,501 (men); $5,501 (women)Based on average quotes for a $500,000 policy for 40-year-old nonsmokers with average weight and health ratings.
How Does Indexed Universal Life Insurance Work?
Indexed universal life (IUL) insurance is a type of permanent life insurance that combines a death benefit with a cash value component linked to stock market index performance. Your cash value grows based on index returns. There is a guaranteed floor (usually 0%) that protects against losses and a cap (usually 10-12%) that limits maximum gains. IUL offers more growth potential than traditional universal life while providing downside protection that direct market investing doesn't offer.
How to Choose the Best Indexed Universal Life Insurance
The best indexed universal life insurance fits your financial goals, risk tolerance and budget. Follow these steps to find the right policy and provider.
- 1Set Your Goals and Timeline
Decide what you want your policy to achieve, whether it’s estate planning, retirement income, business protection or family security. Your goals and time frame will guide how you allocate your index options and plan your premium payments.
- 2Compare Index Crediting Options
Look at each insurer’s caps, participation rates and floors. A higher cap doesn’t always mean better growth if the participation rate is low. Ask for historical data showing how each crediting method has performed over the past 10 to 15 years.
- 3Review Policy Costs
Check the monthly fees, cost of insurance and surrender charge schedule. Sometimes, lower upfront costs lead to higher long-term charges that can slow down your cash value growth.
- 4Check the Company’s Financial Stability
Pick insurers rated A- or higher by AM Best with a record of strong customer service. You can also review NAIC complaint indexes to see how satisfied other policyholders are.
- 5Look Closely at Projections
Be cautious of illustrations showing returns higher than 6% to 7%. Using more conservative estimates gives you a clearer picture of your policy’s potential and helps prevent underfunding.
Indexed Universal Life Insurance Cost
IUL premiums depend on personal factors like age, gender, health, and coverage amount, plus ongoing policy charges and the performance of underlying index strategies. Unlike term life insurance with fixed premiums, IUL costs can fluctuate based on policy charges and how much premium you choose to pay above the minimum required amount.
Data filtered by:
40
Male
No
| $50,000 | $41 | $490 |
| $100,000 | $82 | $979 |
| $150,000 | $122 | $1,469 |
| $200,000 | $163 | $1,958 |
| $250,000 | $204 | $2,448 |
| $300,000 | $245 | $2,937 |
| $350,000 | $286 | $3,427 |
| $400,000 | $326 | $3,916 |
| $450,000 | $367 | $4,406 |
| $500,000 | $408 | $4,895 |
| $550,000 | $449 | $5,385 |
| $600,000 | $490 | $5,874 |
| $650,000 | $530 | $6,364 |
| $700,000 | $571 | $6,853 |
| $750,000 | $612 | $7,343 |
| $800,000 | $653 | $7,833 |
| $850,000 | $694 | $8,322 |
| $900,000 | $734 | $8,812 |
| $950,000 | $775 | $9,301 |
| $1,000,000 | $816 | $9,791 |
| $1,500,000 | $1,224 | $14,686 |
| $2,500,000 | $2,040 | $24,477 |
Rates above are based on our sample applicant profiles. Actual premiums will vary depending on your profile and coverage needs. Contact insurers for accurate pricing.
Best Indexed Universal Life Insurance Companies: Bottom Line
Indexed universal life insurance involves investment risk. Cash value growth depends on market index performance and is subject to caps, floors and fees that vary by insurer. Policy performance is not guaranteed, and insufficient cash value growth may cause your policy to lapse.
IUL policies require active management and consistent funding to perform as designed. Choose a company with strong customer support and digital tools that make monitoring your policy straightforward. The right IUL policy from a reputable insurer can provide valuable financial protection and growth potential, but success depends on realistic expectations and proper long-term planning.
Based on our analysis, Ethos, Protective Insurance, Pacific Life and Legal & General are the best indexed universal life insurance companies in 2025.
IUL Policies: FAQ
We answer common questions about indexed universal life insurance, covering everything from basic mechanics to investment risks and costs.
Is indexed universal life insurance a good investment?
IUL isn't purely an investment. It's life insurance with an investment component. It works well for people who need permanent life insurance and want growth potential beyond traditional whole life policies. Policy charges and fees reduce returns compared to direct investing. IUL makes sense if you've maximized other tax-advantaged accounts and need the life insurance protection, but it shouldn't replace your primary retirement savings strategy.
Can you lose money in indexed universal life insurance?
Your cash value won't decrease due to negative index performance because of the guaranteed floor, but you can lose money if policy charges exceed cash value growth or if you surrender the policy early. High surrender charges in the first 10-15 years mean you'll likely lose money if you cancel early. Poor index performance combined with high policy costs can also erode cash value over time, potentially causing your policy to lapse.
What are the main risks of indexed universal life insurance?
The biggest risks include policy lapse due to insufficient cash value growth, changing caps and participation rates that reduce future returns, and high early surrender charges if you need to cancel. Policy loans can accumulate and cause coverage lapse if not managed carefully. Unlike direct investing, you don't control the underlying investments, and insurance company fees reduce your returns. Poor policy design or inadequate funding can lead to expensive coverage that doesn't meet your original goals.
Who is IUL insurance best for?
Indexed universal life insurance works best for those who want permanent life insurance with growth potential and can commit to consistent premium payments for 10-15 years or longer. You should have a stable income that allows funding above minimum premium levels, especially in early policy years when surrender charges are highest.
Skip IUL if you need simple, predictable coverage. Term life insurance is a good alternative that provides more death benefit protection for less money.
Our Ratings Methodology
Indexed universal life insurance policies vary in cost structure and growth potential, making it important to compare the specific features that impact your long-term returns. We designed our research to focus on what actually matters when you're building wealth through permanent life insurance with market-linked growth.
We scored indexed universal life insurance companies across three weighted categories. Our analysis reveals which insurers offer the best combination of competitive costs, strong financial stability and flexible policy features for long-term wealth building.
Our Scoring System
Each company can earn up to five points in the following weighted categories:
- Affordability (50%): Premium costs and internal policy fees
- Customer Experience (30%): Financial strength and service quality
- Coverage Options (20%): Index choices and policy flexibility
Why Affordability Gets 50% Weight
The cost structure determines how much of your premium contributes to cash value versus fees. Even small differences in charges can compound over 20 to 30 years, affecting your policy’s ability to build wealth.
Customer Profiles Used
We used standardized profiles to keep comparisons fair:
- For overall rankings: Men ages 30 to 49, nonsmokers, 5'9", 160 lbs., average health rating
- For specific categories: 40-year-old male, nonsmoker, 5'9", 160 lbs., average health rating
We also adjusted profiles by age, gender, health and location to see how prices vary. All premium rates are based on the standard profile unless otherwise noted.
Data Sources and Analysis
Our analysis includes quote data from multiple insurers, AM Best financial strength ratings, NAIC complaint ratios, J.D. Power satisfaction scores and in-depth reviews of policy features.
We gathered indexed universal life insurance quotes for various coverage amounts to find pricing patterns and identify which companies consistently offer good value across different policy sizes and customer profiles.
Related Pages
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.