Every policy is a trade between cost, permanence and control. Adjust the scenario to see illustrative figures for all three. All figures at Preferred non-tobacco.
Last reviewed September 2026 by Dev Gaymes, Texas-licensed life insurance agent, NPN 16654074 · Editorial policy
Term buys the most protection for the least premium while your obligations are highest. Whole life costs the most but never expires and builds guaranteed cash value. Indexed universal life sits between them - permanent coverage with flexible premiums and cash value credited to an index, subject to caps and without the guarantees whole life carries.
Coverage ends at age 55. No cash value.
Preferred non-tobacco
Level for life. Guaranteed cash value.
Preferred non-tobacco
Minimum premium to carry the death benefit, with no-lapse protection.
Illustrated 5.57% · 8.5% cap
Same premium as whole life. Death benefit solves to $451,277.
Illustrated 6.35% · 10% cap
*Hypothetical, non-guaranteed, and shown for a policy funded at the planned premium above. Fund an indexed UL differently and both figures change materially.
The tool interpolates from these. Monthly premium, $500,000 death benefit, Texas, Preferred non-tobacco, quoted 13 September 2026. Shown as male / female.
Actual carrier quotes, not modeled figures. Female term rates run roughly 13% to 28% below male at the same age, and the gap widens with age. Whole life illustrated to age 121. The overfunded IUL uses the whole life premium and solves the death benefit down to the minimum non-MEC face; death benefit shown is male. Illustrative only, not a quote.
This is the part almost nobody explains, and it is why the tool above shows two indexed UL columns rather than one.
A protection-focused IUL and an accumulation-focused IUL are different contracts. Different cost-of-insurance structures, different internal charges, different caps, and a no-lapse guarantee on one that the other does not carry. Asking whether IUL is a good product is a little like asking whether a vehicle is a good vehicle - the answer depends entirely on which one and what for.
Two distinct products from the appointed carrier set, quoted 13 September 2026, Texas Preferred non-tobacco. The illustrated rates and caps differ because the products differ, not because the comparison was constructed that way.
Run the tool at 35 and the overfunded IUL shows a higher account value than whole life at the same premium. That is real, and it is the case for the design. But look at the death benefit line underneath it.
From carrier illustrations pulled 13 September 2026, Texas Preferred non-tobacco. Whole life illustrated to age 121. Non-guaranteed values shown; the guaranteed column looks materially different.
There is also a ceiling on funding: contributions above the seven-pay test limit reclassify the policy as a Modified Endowment Contract, permanently changing the tax treatment. The overfunded column is funded to just under that line, which is a technical exercise involving your CPA. More on how IUL actually works.
At year 20 whole life carries the larger death benefit. Run the same illustrations out ten more years and that reverses at most ages, sometimes dramatically.
Male, Texas, Preferred non-tobacco, $500,000 initial death benefit, quoted 13 September 2026. Whole life illustrated to age 121; overfunded IUL at 6.35% with a 10% cap. Non-guaranteed values.
That is the case for the accumulation design, stated properly. Early on you trade death benefit for account value. If the policy performs and stays funded, the death benefit catches up and then passes whole life. If it underperforms or funding stops, it does not.
General industry ranges compiled from published sources as of September 2026; not any single carrier's rates. Caps and participation rates are non-guaranteed elements carriers may change, subject to contractual minimums. The guaranteed minimum cap written into your contract is materially lower than the current declared cap.
General product comparison. Specific features, guarantees, charges and exclusions are governed solely by the issued policy contract and vary by carrier and state.
It depends which product.All four figures are based on real carrier quotes pulled 13 September 2026 for a Texas applicant at Preferred non-tobacco. Ages 35, 45 and 55 are actual quotes; other ages are interpolated or extrapolated from them, and an applicant in a lower class will pay meaningfully more. Treat all of it as a starting point for budgeting, not a number to plan around.
Because a protection-focused IUL and an accumulation-focused IUL are genuinely different products, not two settings of one policy. They have different cost-of-insurance structures, different internal charges, different caps, and the protection version carries a no-lapse guarantee the other does not. The protection column shows the minimum premium to carry your chosen death benefit. The overfunded column uses the same premium as whole life and solves the death benefit down to the minimum that keeps the policy out of MEC status.
On these illustrations, at the same premium, the overfunded IUL shows higher year-20 account value than whole life - at age 35 male, $201,846 against $126,825. But it also shows a lower death benefit: $451,277 against $540,278. So the honest description is a trade rather than a win. You exchange roughly $89,000 of death benefit for roughly $75,000 of account value, and you exchange guaranteed cash value and premium for a 0% floor with crediting and charges the carrier can change.
Two different ones, because they are two different products. The protection IUL was illustrated at 5.57% with an 8.5% S&P 500 annual point-to-point cap. The overfunded IUL was illustrated at 6.35% with a 10% cap. Both sit within the roughly 8% to 12% range typical of new-issue policies in 2026, down from commonly 12% to 13% in 2019. Caps are non-guaranteed elements carriers can change, subject to contractual minimums.
No. Nothing on this page is an in-force or sales illustration under NAIC Actuarial Guideline 49-B. Only the issuing carrier can produce one, and any serious decision about a permanent policy should be made against a real illustration including the guaranteed column - which shows what happens if every non-guaranteed element moves against you.
Most carriers will not issue a term policy that extends materially past age 80, so a 30-year term is generally unavailable to a 55-year-old. The tool removes combinations that would not be issued rather than showing a premium for a policy you could not buy.
No. Unlike auto or homeowners insurance, life insurance premiums do not vary by address within Texas. Rates are filed with the Texas Department of Insurance and apply statewide. Your age, health, tobacco status, coverage amount and product determine the premium.
Use them to decide roughly what you can budget and which product category fits. Then have someone run an actual quote against carriers that suit your health profile, because the spread between carriers on an impaired file is frequently wider than the difference between products. If the honest answer is that term does the job, that is worth hearing before anyone shows you an illustration.
Term figures are calibrated against rates pulled September 2026 for a Texas male applicant at Preferred non-tobacco, representative of rates available across appointed A-rated carriers. Whole life and both indexed UL figures are from carrier illustrations at Preferred non-tobacco, pulled 13 September 2026. Whole life illustrated to age 121. Texas policy forms and rates are filed with the Texas Department of Insurance. Illustration standards referenced are NAIC Actuarial Guideline 49-B, effective May 2023. Dev Gaymes is a licensed Texas producer, NPN 16654074, verifiable through the NIPR national producer database.
Dev Gaymes is a licensed insurance broker, not a tax advisor or investment adviser. This tool is for general education only. It is not a quote, application, offer of coverage, or recommendation for your situation. Term premium figures reflect a Preferred non-tobacco underwriting class; applicants in other classes will pay more. Whole life and indexed universal life figures come from carrier illustrations at Preferred non-tobacco. The two indexed UL columns are different products with different cost structures and illustrated rates. Cash value and account value figures are hypothetical and non-guaranteed, illustrate composite generic policy structures, and are not tied to any specific carrier, product or dividend scale. Whole life values depend on the insurer’s performance, policy loans and the product selected. Indexed universal life values depend on index performance, the cap or participation rate in effect, and internal policy charges, all of which change over time; a 0% floor limits index losses but does not prevent charges from reducing account value. Cash value grows on a tax-deferred basis; tax treatment depends on how the policy is structured and accessed, and policy loans reduce the death benefit. All coverage is subject to carrier underwriting approval, and policy terms, benefits, exclusions and limitations are governed solely by the issued policy contract.