A way for Texans to build retirement income you can access tax free, with a floor that protects your cash value from market losses. And because Texas has no state income tax, more of that income stays yours. Honest trade-offs, no hype.
An indexed universal life policy is permanent life insurance that also builds cash value. That cash value earns interest tied to a market index, with a floor that shields you from index losses in exchange for a cap on the upside.
Done right, the cash value can later be accessed tax free for retirement income, on top of the death benefit your family receives. For the full mechanics, the upside, and the honest downsides, read our guide to tax-free retirement income with an IUL. This page makes it specific to living in Texas.
Texas is one of a handful of states with no personal state income tax, confirmed by the Texas Comptroller. For a strategy built around tax-free retirement income, that stacks in your favor: a properly structured IUL can provide income that is free from federal income tax, and in Texas there is no state income tax layered on top of your other retirement income either. The IUL strategy is the same everywhere. The Texas tax math just lets more of it stay in your pocket.
Already funding a 401k and Roth and want another tax-advantaged bucket with protection? This is where an IUL fits best.
Self-employed Texans without a pension often use an IUL to build a private, flexible retirement pool.
IULs reward time. The earlier you fund one, the more the tax-advantaged growth can compound.
An IUL is insurance with a savings component, not a pure investment. It carries fees and costs, the cash value is not guaranteed, and gains are capped in exchange for the downside floor. It is a poor fit if you have not yet funded your 401k match and Roth, or if you cannot commit to funding it consistently for years. If it is not right for you, I will say so.
Texas license 3463182, verifiable through the Texas Department of Insurance. NPN 22121673.
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It is permanent life insurance with a cash value that earns interest tied to a market index like the S&P 500. Your money is not in the market directly, so a floor protects you from index losses, in exchange for a cap on gains. The cash value can later be accessed, often tax free, for retirement income.
Texas has no state income tax. Combined with the federal tax advantages of properly structured life insurance, a Texan keeping retirement income tax free can keep more of it than someone in a high-income-tax state.
It is insurance with a savings component, not a pure investment, and it is not right for everyone. It carries fees and the cash value is not guaranteed. It tends to fit people who already use their 401k and Roth and want an additional tax-advantaged bucket with protection. We walk the honest trade-offs first.
Yes. I hold Texas producer license number 3463182, NPN 22121673, and you can verify any agent through the Texas Department of Insurance.
A short, no-pressure strategy review. We run real illustrations and look at whether this belongs in your plan at all. Curious how others use the cash value? Read about being your own bank, or see our full life insurance options.