Indexed universal life

Indexed universal life insurance

Indexed universal life insurance policies let you have more control over your premium payments and death benefit than some other types of life insurance, while also letting you use the policy’s cash value during your lifetime for a variety of purposes. How you choose to design your policy will reflect your priorities for protection and cash accumulation.

What is indexed universal life insurance?

Indexed universal life insurance is a type of life insurance that offers the potential for cash accumulation based upon market performance, along with a floor on performance that protects the policy’s values from market losses. It differs from other permanent insurance (like whole life) because you have:

  • More flexibility with your premiums, including how much and when you pay
  • The ability to adjust the amount of death benefit your beneficiaries would receive as your needs change
  • The ability to increase the policy’s values based, in part, upon the performance of financial market indices*

All indexed universal life insurance policies offer death benefit protection and the potential to accumulate cash value on a tax-deferred basis.

An indexed universal life insurance policy lets you direct your money to a fixed interest account, or to index accounts where interest crediting varies with the performance of a specific equity index, like the S&P 500®. As a result, an indexed whole life insurance policy may offer higher return potential than some other types of life insurance. It’s important to note, however, that there are performance caps limiting how much of an index’s performance you’ll be credited, balanced by the protection of performance floors that help you avoid negative returns. Because none of your money is directly invested in the market, your policy's cash value will not decrease solely because of how the index performed.**
With an indexed universal life insurance policy, after your initial premium payment, you choose the amount and timing of additional premium payments. This lets you build the policy to fit your needs, based upon your unique financial resources and goals, whether that means gearing it more toward protecting loved ones or accumulating assets for a future objective.
When you want to access your policy’s cash value, our indexed universal life insurance policies also offer two different types of loans***, allowing you to choose the option that best fits your needs. Both loan types are charged the same variable interest rate, but differ in how interest can be earned on whatever cash value is serving as collateral, and you can switch between the two as often as every 12 months. Your financial professional can help you understand each type and which might make the most sense to meet your needs.

* Interest linked growth is based in part on the movement of the selected market index and is subject to applicable caps, spreads, and/or participation rates.

** The cash value may still decrease due to the deduction of cost of insurance and expense charges.

*** If tax-free loans are taken and the policy lapses a taxable event may occur. Loans and withdrawals (partial surrenders) from life insurance policies classified as modified endowment contracts may be subject to tax at the time the loan or withdrawal is taken and, if taken prior to age 59 1/2 , a 10% federal tax penalty may apply. Withdrawals and loans reduce the death benefit and cash surrender value.

Indexed universal life insurance can help you:

Provide a death benefit

Your loved ones get a guaranteed, tax advantaged death benefit if you die

Build cash value

Your premiums create cash value that you can access for needs, including retirement

Adjust premium and death benefit

Stay flexible with the ability to adjust your premium amount and death benefit based on future needs

Learn more about indexed universal life insurance

Build cash value with UNIVERSAL LIFE Living benefits of RIDERS

Products issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Registered products distributed by Ohio National Equities, Inc., Member FINRA. Product, product features and rider availability vary by state. Guarantees are based upon the claims-paying ability of the issuer. Issuers not licensed to conduct business in New York. Withdrawals and loans may reduce the death benefit, cash surrender value and any living benefit amount.