I’m sure you can agree that understanding how life insurance costs vary can be confusing — especially when it comes to finding fair Indexed Universal Life (IUL) insurance rates by state. After all, everyone wants to know if they’re getting the best value for their coverage, right?
That’s why at Simply Insurance we’ve done the research for you.
gathering indexed universal life insurance rates by state across all 49 jurisdictions (New York excluded, DC included), so you don’t have to spend hours comparing options on your own. In this guide, we’ll explore which states offer the most affordable IUL coverage, which ones tend to be pricier, and what factors make these rates vary so much. So you can see exactly where your state stands.
Key Takeaways:
- Lowest IUL premiums: Colorado ($2,515), DC ($2,530), and New Jersey ($2,566).
- Highest IUL premiums: Mississippi ($3,227), West Virginia ($3,218), and Louisiana ($3,213).
- National average cost: $2,812 per year ($234 per month) for a healthy 35-year-old with $500,000 in coverage.
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How Much Does Indexed Universal Life (IUL) Insurance Cost By State?
The national average cost of Indexed Universal Life Insurance is around $2,812 per year for a healthy 35-year-old with $500,000 in coverage. IUL premiums typically cost 15-30% more than term life insurance due to the investment component and cash value accumulation features.
How Much Does IUL Insurance Cost Per Month?
The national average cost of indexed universal life insurance is around $234 per month in the United States for a $500,000 policy on a healthy 35-year-old; However, keep in mind that your rates may vary. Rates are state-specific and company-specific, so it's best to compare quotes before finalizing a policy.
Average Cost Of Indexed Universal Life (IUL) Insurance Rates By State
IUL Insurance costs vary significantly from state to state. The most expensive state for indexed universal life insurance is Mississippi ($3,227), while the most affordable is Colorado ($2,515).
IUL Insurance Rates By State Chart
STATE | ANNUAL PREMIUM | STATE | ANNUAL PREMIUM |
|---|---|---|---|
Alabama | $3,092 | Montana | $2,825 |
Alaska | $2,843 | Nebraska | $2,882 |
Arizona | $2,786 | Nevada | $2,898 |
Arkansas | $3,135 | New Hampshire | $2,659 |
California | $2,658 | New Jersey | $2,566 |
Colorado | $2,515 | New Mexico | $3,083 |
Connecticut | $2,594 | New York | X |
Delaware | $2,784 | North Carolina | $2,910 |
District Of Columbia | $2,530 | North Dakota | $2,859 |
Florida | $2,756 | Ohio | $2,989 |
Georgia | $2,936 | Oklahoma | $3,116 |
Hawaii | $2,621 | Oregon | $2,842 |
Idaho | $2,798 | Pennsylvania | $2,863 |
Illinois | $2,717 | Rhode Island | $2,762 |
Indiana | $2,997 | South Carolina | $2,996 |
Iowa | $2,943 | South Dakota | $2,742 |
Kansas | $2,904 | Tennessee | $3,039 |
Kentucky | $3,051 | $2,853 | |
Louisiana | $3,213 | Utah | $2,678 |
Maine | $2,814 | Vermont | $2,671 |
Maryland | $2,697 | Virginia | $2,769 |
Massachusetts | $2,574 | Washington | $2,691 |
Michigan | $2,959 | West Virginia | $3,218 |
Minnesota | $2,748 | Wisconsin | $2,880 |
Mississippi | $3,227 | Wyoming | $2,888 |
Missouri | $2,937 | |
What Are The 7 Most Affordable States For Indexed Universal Life Insurance?
Colorado – $2,515 per year
- No state income tax on retirement benefits
- Low natural disaster risk = lower insurance costs
- Competitive market with 15+ major carriers
- Healthy population demographics reduce claims
District of Columbia – $2,530 per year
- High competition from tri-state area carriers
- No state premium tax on life insurance
- Wealthy, educated population = lower risk profile
- Access to federal employee group rates
New Jersey – $2,566 per year
- Dense population spreads carrier costs efficiently
- Strong regulatory framework prevents overpricing
- 20+ licensed carriers create competition
- High median income = stable premium payments
Massachusetts – $2,574 per year
- Strict insurance regulations cap excessive pricing
- Excellent healthcare system reduces mortality risk
- High education levels correlate with better health
- 25+ carriers licensed in state
Connecticut – $2,594 per year
- No state tax on life insurance benefits
- Wealthy population = lower lapse rates
- Strong financial services sector presence
- Proximity to NYC increases carrier options
Hawaii – $2,621 per year
- Longest life expectancy in US = lower payouts
- Healthy lifestyle and diet culture
- Limited but stable insurance market
- Low crime rates reduce risk factors
California – $2,658 per year
- Largest insurance market = maximum competition
- Strict Department of Insurance rate oversight
- Diverse economy reduces systemic risk
- Tech sector wealth drives premium volume
What States Have the Highest IUL Insurance Rates?
As you will see below, indexed universal life insurance rates can vary significantly by state, with Mississippi having the highest annual premium at $3,227 and Colorado having the lowest at $2,515.
STATE | MONTHLY PREMIUM |
|---|---|
Mississippi | $269.00 |
West Virginia | $268.17 |
Louisiana | $267.75 |
Kentucky | $254.25 |
Tennessee | $253.25 |
Arkansas | $261.25 |
Oklahoma | $259.67 |
INDEXED UNIVERSAL LIFE INSURANCE WHERE YOU LIVE
Indexed Universal Life insurance by state.
With a Life Insurance policy you can take care of your family the right way.
Should anything happen to you, you'll want to leave your loved ones a financial nest egg for their wellbeing.
IUL Insurance Cost vs. Other Life Insurance Types
Indexed universal life insurance serves different purposes and comes with different costs compared to other life insurance products. Let's compare them:
Is IUL More Expensive Or Cheaper Than Term Life Insurance?
IUL insurance is significantly more expensive than term life insurance. This is because IUL policies include an investment component and build cash value over time. On average, IUL insurance costs about 8-12 times more than term life insurance for the same death benefit amount.
Is IUL More Expensive Or Cheaper Than Whole Life Insurance?
IUL insurance is typically 10-20% less expensive than whole life insurance. While both offer permanent coverage and cash value accumulation, IUL policies provide more flexibility in premium payments and potentially higher returns tied to market indices.
Is IUL More Expensive Or Cheaper Than Variable Life Insurance?
IUL insurance costs are generally similar to variable life insurance, though IUL policies often have slightly lower fees and provide downside protection that variable life policies may lack.
Who Has the Best IUL Insurance Rates By State?
Ethos stands out as our top choice nationwide for indexed universal life insurance due to its competitive pricing, streamlined digital application process, and comprehensive coverage options. While rates vary by state due to factors like mortality rates, state regulations, and local market conditions, Ethos consistently offers some of the most competitive rates across all 50 states.
Top IUL Providers By State Quick Review:
- 1Ethos: Our primary recommendation nationwide with competitive rates across all states, streamlined digital application process, and excellent customer service
- 2Pacific Life: Excellent rates in Western states (CA, NV, AZ) with strong index options and competitive caps
- 3Allianz: Competitive nationwide with innovative indexing strategies
- 4Lincoln National: Strong presence in Midwest and Eastern states
- 5Nationwide: Good rates for younger applicants across most states
- 6Transamerica: Competitive options in Southern states
What Factors Affect IUL Insurance Rates?
- Age – Younger applicants receive significantly lower rates
- Health Status – Medical exams and health history impact pricing
- State Regulations – Some states have stricter insurance regulations
- Gender – Women typically pay slightly less due to longer life expectancy
- Death Benefit Amount – Larger policies may qualify for preferred pricing
- Policy Features – Additional riders increase premiums
- Insurance Company – Each insurer has different underwriting standards
What Is Indexed Universal Life Insurance?
Indexed Universal Life Insurance is a type of permanent life insurance that combines a death benefit with a cash value component tied to the performance of stock market indices. IUL policies offer the potential for higher returns than traditional universal life insurance while providing downside protection through guaranteed minimum interest rates.
What Does IUL Insurance Cover Or Provide?
Death Benefit Protection:
Provides tax-free death benefit to beneficiaries, with flexible death benefit options that can increase or decrease based on your needs.
Cash Value Accumulation:
Builds cash value over time based on the performance of selected market indices, with downside protection ensuring you won't lose money in down markets.
Flexible Premiums:
Allows you to adjust premium payments within certain limits, providing financial flexibility as your circumstances change.
Tax Advantages:
- Tax-deferred cash value growth
- Tax-free death benefits to beneficiaries
- Potential for tax-free loans and withdrawals from cash value
What IUL Insurance Does NOT Cover Or Provide
- Direct market participation – You don't own actual stocks or bonds
- Guaranteed high returns – Returns are subject to caps and participation rates
- Immediate high cash values – Cash value builds slowly in early years
- Investment control – You cannot actively manage the investments
IUL vs. Other Investment Options
IUL INSURANCE | TRADITIONAL INVESTMENTS |
|---|---|
Tax-deferred growth with life insurance | Taxable investment gains |
Downside protection with upside potential | Full market risk exposure |
Death benefit included | No life insurance component |
Limited liquidity in early years | Generally more liquid |
Who Are the Best IUL Insurance Companies?
Choosing the right insurance company is crucial for getting the best coverage at competitive rates. Here are some of the top companies offering indexed universal life insurance:
Ethos
Ethos is our primary recommendation for indexed universal life insurance. They specialize in modern, tech-driven life insurance solutions with competitive rates across all states. Their streamlined digital application process, excellent customer service, and comprehensive IUL products make them the top choice for most applicants.
Pacific Life
Pacific Life is highly rated for IUL products, offering multiple index options and competitive participation rates. They provide strong financial stability and excellent customer service.
Allianz Life
Allianz offers innovative IUL products with unique indexing strategies and volatility controls. They're known for competitive rates and flexible policy features.
Lincoln National
Lincoln Financial provides solid IUL options with strong index crediting strategies and competitive pricing, particularly in the Midwest and Eastern regions.
Nationwide
Offers competitive IUL products with good rates for younger applicants and flexible premium options across most states.
Transamerica
Provides competitive IUL policies with multiple index options and strong customer service, particularly competitive in Southern markets.
THE SIMPLY INSURANCE WAY
IUL Insurance made easy!
Agents Available To Assist.
Get quotes and sign up online or get help from a licensed agent, we are here if you need us.
Unbiased, expert advice.
Get unbiased insurance education from licensed experts and also avoid dodgy sales calls.
Coverage in minutes.
You can get iul life insurance coverage within minutes of getting your quotes and applying.
What Are the Different Types Of IUL Coverage Options?
There are different index crediting methods and policy structures available with IUL insurance:
Point-to-Point Method
Credits interest based on the index performance from one anniversary date to the next, offering simplicity and straightforward crediting.
Monthly Sum Method
Averages the monthly index performance over the year, potentially reducing volatility in crediting.
Monthly Point-to-Point Method
Credits interest monthly based on index performance, providing more frequent crediting opportunities.
What IUL Life Insurance Is Best For My Needs?
The best IUL insurance depends on your specific financial goals:
Wealth Transfer Planning:
Pacific Life or Allianz: Strong index options for long-term growth
Retirement Income Supplement:
Lincoln National or Nationwide: Good loan provisions and cash value access
Estate Planning:
Prudential or Pacific Life: Strong death benefit options and estate planning features
Young Families:
Ethos Life or Nationwide: Competitive rates for younger applicants
What To Look For In An IUL Provider
- Financial Strength Ratings: Look for A.M. Best ratings of A or higher
- Index Options: Multiple indices provide diversification opportunities
- Participation Rates: Higher participation rates mean more upside potential
- Caps and Floors: Competitive caps with reasonable floor guarantees
- Policy Flexibility: Options to adjust premiums and death benefits
- Customer Service: Strong claims payment history and customer support
Is IUL Insurance Worth It?
Whether IUL insurance is worth it depends on your specific financial situation:
IUL May Be Right If You:
- Need permanent life insurance coverage
- Want potential for higher returns than whole life
- Desire downside protection in market downturns
- Have maximized other tax-advantaged accounts
- Understand the complexity of IUL products
Consider Alternatives If You:
- Only need temporary coverage (consider term life)
- Want guaranteed returns (consider whole life)
- Prefer simpler investment options
- Have limited premium budget
Indexed Universal Life Insurance Coverage Made Simple
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Taking Action
Now that you have a better understanding of indexed universal life insurance rates and coverage options, it's time to take action. Protecting your family's financial future is crucial, and finding the right IUL policy can provide both death benefit protection and potential cash value growth. Compare quotes from multiple insurers to find the best rates for your situation.
Frequently Asked Questions
Why is IUL Insurance more expensive than term life?
IUL insurance is more expensive because it combines life insurance with an investment component. The policy builds cash value over time and provides permanent coverage, unlike term life which is temporary coverage only.
Who gives the best IUL Insurance rates?
Several companies offer competitive IUL rates, including Pacific Life, Allianz, Lincoln National, and Nationwide. Each company has different strengths, so it's important to compare quotes and policy features to find the best fit for your needs.
How much is IUL Insurance in the US?
The cost of IUL insurance varies widely based on age, health, location, and coverage amount. On average, a healthy 35-year-old might pay $200–$400 per month for a $500,000 IUL policy. It's important to get quotes from multiple insurers to find the best rate for your specific situation.