Life insurance products
Indexed universal life insurance (IUL) in NJ
Indexed universal life (IUL) is permanent coverage whose cash value is credited based partly on a stock market index, subject to a cap on gains and a floor, often 0%, on losses.
It can build cash value with some market-linked upside, but crediting rates, caps and policy charges can change, and illustrations are projections, not promises.
Who it’s for
- High earners who want permanent coverage with potential cash value growth
- Business owners using permanent coverage in executive benefit plans
- People comfortable monitoring a policy and adjusting premiums over time
How index crediting works
Your cash value isn’t invested in the market directly. The insurer credits interest based on an index’s change over a period, limited by a cap (the maximum credited) and participation rate, with a floor that limits losses from index declines.
Policy charges (cost of insurance, fees, rider charges) are deducted regardless of crediting, so a 0% year can still reduce cash value.
Reading an IUL illustration
- Compare the guaranteed column, not just the illustrated rate
- Ask how the policy performs at lower assumed rates
- Understand how policy loans work and their risk of lapse
- Review the policy annually; caps and charges can change
Our 5-step process
How we place indexed universal life (IUL) in NJ
You start here
Life Planning Review
Start a Life Planning Review and tell us the purpose of the coverage and how much you plan to fund.
What we need
- Purpose: lifelong coverage, executive benefit, or other planning
- Planned annual funding and for how many years
- Existing life policies and statements
- Owner and beneficiaries (you, a trust, a business)
- Your CPA or financial advisor’s contact, if they’re involved
- Date of birth
- Health details are never collected through the website; anything medical is discussed privately after you start.
- 2
Coverage design
Kevin designs the death benefit and funding, and runs illustrations at conservative assumptions as well as the illustrated rate so you see the range.
- 3
Application & underwriting
You apply with the selected carrier; expect a paramedical exam, records and financial documentation for larger amounts.
- 4
Offer review
You review the approved class and a final illustration, with the guaranteed and conservative scenarios side by side, before accepting.
- 5
Policy delivery & setup
You sign delivery forms and illustration acknowledgments, set up funding, and schedule annual policy reviews.
Mistakes that cost people later
- × Treating the illustrated rate as a promised return
- × Underfunding the policy relative to the design
- × Taking large loans without monitoring the lapse risk
- × Buying IUL when the real need is temporary and term would fit
Questions people ask
Can I lose money in an IUL?+
Index losses are typically limited by a floor, but policy charges continue, so cash value can decline in low-crediting years, and surrender charges apply in early years.
Is IUL a good investment?+
It is life insurance first. Whether it fits depends on your need for permanent coverage, your funding ability and your comfort with non-guaranteed elements. Discuss the investment side with a financial or tax advisor.
What are caps and participation rates?+
They limit how much of the index’s gain is credited. Insurers can change them within the limits stated in the policy.
How is IUL different from whole life?+
Whole life has fixed premiums and guaranteed cash value growth. IUL has flexible premiums and index-linked crediting that isn’t guaranteed beyond the floor.
Start a Life Planning Review
Tell Kevin what you need the coverage to accomplish. It takes a few minutes, there are no health questions online, and existing policies and documents are reviewed through a secure process.
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Kevin Brown, licensed New Jersey insurance producer (#3003694894)
Kevin Brown Insurance Agency, South Plainfield, NJ. You work with Kevin directly on every life case. Updated November 2026.
Coverage, policy features, premiums and underwriting requirements depend on the insurer, product, applicant and state availability. Approval is not guaranteed. Illustrations are not promises of future performance. Kevin Brown Insurance Agency does not provide medical, legal or tax advice. Consult your attorney or CPA about your circumstances.