Indexed Universal Life Insurance Cost (2026 Rates)

Indexed universal life (IUL) insurance costs an average of $335 per month for a 40-year-old woman and $408 for a man with a $500,000 policy. Your premium depends on your age, health, tobacco use and coverage amount.

Find out if you're overpaying for life insurance below.

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Updated: July 10, 2026

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Key Takeaways
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A $500,000 IUL policy averages $335 per month for women and $408 for men at 40 years old.

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Buying an IUL in your 30s or 40s locks in lower cost-of-insurance charges. By age 70, premiums for the same coverage are four to six times higher.

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Smokers pay about 60% more than nonsmokers on average. Most insurers will consider reclassifying you as a nonsmoker after you've been tobacco-free for at least 12 months.

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IUL premiums can change over time. While your payment is flexible, rising insurance costs as you age can require higher premiums later to keep the policy in force, especially if it's underfunded.

What is Indexed Universal Life Insurance?

An IUL policy is a type of permanent life insurance that combines a death benefit with a cash value account linked to the performance of a market index like the S&P 500. Returns are limited by a cap rate (usually 8% to 12%) in strong years and protected by a floor (usually 0%) in down markets.

Unlike term life insurance, IUL coverage lasts for your lifetime as long as your policy remains adequately funded. Unlike whole life insurance, an IUL offers flexible premiums within insurer limits. You can contribute more to build cash value faster or pay less when your accumulated cash value is sufficient to cover the policy's ongoing insurance charges.

Average Cost of IUL Insurance

Based on our analysis of thousands of quotes, indexed universal life (IUL) insurance costs an average of $335 per month for a 40-year-old woman and $408 for a man with $500,000 in coverage. Your actual premium depends on your age, coverage amount, health and smoking status.

Estimate Your IUL Policy Cost

Estimates are based on average health.

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Average Monthly Rate—

IUL Insurance Cost by Age

Age is one of the primary factors affecting IUL premiums. A 20-year-old woman pays an average of $54 per month for a $500,000 IUL policy, while the same policy costs $1,590 per month at age 70.

Premiums rise steadily with age, with the largest increases occurring in your 60s. Between ages 60 and 70, women's average monthly premiums increase 84%, from $866 to $1,590, while men's premiums increase from $1,059 to $1,947. Buying earlier can greatly reduce the lifetime cost of permanent coverage.

20
$54
$648
$56
$672
25
$205
$2,460
$247
$2,964
30
$246
$2,952
$295
$3,540
35
$279
$3,348
$328
$3,936
40
$335
$4,020
$408
$4,896
45
$410
$4,920
$499
$5,988
50
$513
$6,156
$638
$7,656
55
$642
$7,704
$817
$9,804
60
$866
$10,392
$1,059
$12,708
65
$1,148
$13,776
$1,410
$16,920
70
$1,590
$19,080
$1,947
$23,364

* Rates shown are for nonsmokers with average health and $500,000 in coverage.

IUL Insurance Rates for Smokers

Smoking greatly increases IUL premiums. A 40-year-old woman who smokes pays an average of $537 per month, 60% more than a nonsmoker. For men, the average is $649 per month, 59% more than a nonsmoker.

Most insurers require you to be tobacco-free for at least 12 months to qualify for lower nonsmoker rates.

20
$90
$1,080
$95
$1,140
25
$331
$3,972
$399
$4,788
30
$399
$4,788
$477
$5,724
35
$451
$5,412
$524
$6,288
40
$537
$6,444
$649
$7,788
45
$657
$7,884
$791
$9,492
50
$822
$9,864
$1,014
$12,168
55
$1,030
$12,360
$1,296
$15,552
60
$1,398
$16,776
$1,675
$20,100
65
$1,854
$22,248
$2,226
$26,712
70
$2,564
$30,768
$3,076
$36,912

* Rates shown are for smokers in otherwise average health with $500,000 in coverage.

IUL Insurance Cost for People with Poor Health

Poor health increases IUL premiums, but only slightly. A 40-year-old woman with poor health pays an average of $383 per month, 14% more than a woman in average health. For men, the average is $461 per month, 13% more than in average health.

Health conditions such as diabetes, heart disease and high blood pressure can affect your underwriting classification and increase your premium. Compare quotes from multiple insurers, as underwriting guidelines vary and some carriers are more favorable toward certain medical conditions.

20
$59
$708
$63
$756
25
$227
$2,724
$276
$3,312
30
$276
$3,312
$334
$4,008
35
$323
$3,876
$377
$4,524
40
$383
$4,596
$461
$5,532
45
$469
$5,628
$561
$6,732
50
$574
$6,888
$706
$8,472
55
$710
$8,520
$894
$10,728
60
$956
$11,472
$1,161
$13,932
65
$1,244
$14,928
$1,519
$18,228
70
$1,762
$21,144
$2,108
$25,296

* Rates shown are for people with poor health and $500,000 in coverage.

IUL Insurance Rates by Coverage Amount

Higher death benefit coverage increases your IUL premiums. A 40-year-old woman pays an average of $67 per month for $100,000 in coverage compared with $1,005 per month for $1.5 million. For men, the average ranges from $82 per month for $100,000 to $1,224 per month for $1.5 million. Buy only the amount of coverage you need to meet your financial goals.

$100,000
$67
$804
$82
$984
$250,000
$168
$2,016
$204
$2,448
$500,000
$335
$4,020
$408
$4,896
$750,000
$503
$6,036
$612
$7,344
$1 million
$670
$8,040
$816
$9,792
$1.5 million
$1,005
$12,060
$1,224
$14,688

* Rates shown are based on 40-year-olds with average health.

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HOW MUCH IUL COVERAGE DO YOU NEED?

The right IUL coverage depends on your financial goals. If you're buying an IUL to replace income, a common guideline is 10 to 15 times your annual income. You may need more if you want to pay off a mortgage, fund your children's education or leave money to heirs. If your primary goal is building cash value, work with an advisor to choose the lowest death benefit that still supports your funding strategy, as this can reduce insurance costs while maximizing cash value growth.

Use our life insurance calculator to quickly assess your coverage needs.

What Factors Affect IUL Costs?

Life insurance companies base IUL premiums on your life expectancy, risk profile and the amount of coverage you buy. These are the main factors that affect your cost:

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    Age

    Cost-of-insurance charges increase as you get older, making policies more expensive the longer you wait to buy.

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    Gender

    Women pay less than men because they have longer average life expectancies. Some states restrict gender-based pricing.

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    Health

    Your medical history, current conditions and prescription medications determine your underwriting class. Poor health and pre-existing conditions increase premiums by 13% to 14% in our analysis.

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    Smoking Status

    Tobacco users pay 60% more than comparable nonsmokers in our review.

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    Coverage Amount

    Higher death benefits increase premiums, though larger policies have lower costs per $1,000 of coverage.

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    Policy Funding

    Paying more than the minimum premium can build cash value faster and help offset future policy costs.

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    Hobbies

    High-risk activities like skydiving, rock climbing or scuba diving can result in higher premiums or policy exclusions.

IUL Insurance Cost: Bottom Line

Indexed universal life insurance is one of the more expensive types of life insurance because you're paying for permanent coverage and a cash value account in addition to a death benefit. In our analysis, a 40-year-old pays an average of $335 per month for women and $408 for men for a $500,000 policy, with costs increasing with age, smoking and larger coverage amounts.

IUL policies vary widely in fees, cap rates, participation rates and funding requirements. Compare quotes from multiple insurers and review policy illustrations carefully before you buy.

Frequently Asked Questions

Indexed universal life insurance rates shift across age, health profile and coverage amount. We gathered thousands of quotes across multiple demographics to map how insurers price IUL policies for different applicants.

Base Profile

  • Age: 40 years old
  • Smoking Status: Nonsmoker
  • Man: 5'9" tall, 160 pounds
  • Woman: 5'4" tall, 120 pounds
  • Health Rating: Average

All premiums use this profile unless noted.

Variable Testing

Three underwriting factors were adjusted:

  • Smoking status: smoker vs. nonsmoker
  • Health rating: average vs. poor
  • Coverage amount: multiple death benefit levels

Data Analysis Process

We collected quotes across all profile combinations for age, gender, health classification and coverage amount, identifying average rate patterns across our dataset. Rates reflect averages from quotes received and may vary based on individual insurer underwriting guidelines. The result is comprehensive rate data that shows what IUL insurance actually costs for someone with your profile.

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About Patrick Bryant

Patrick Bryant, Vertical Lead, Life & Health Insurance, MoneyGeek

Patrick Bryant is the Vertical Lead for Life and Health Insurance at MoneyGeek, where he researches insurance products, writes consumer guides and maintains the scoring methodologies behind our provider comparisons. He analyzed more than 50 life insurance carriers across multiple policy types, collecting thousands of quotes nationwide to evaluate rates, coverage options and underwriting factors. His methodologies are reviewed quarterly to reflect current market conditions and carrier data.

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