What is fixed index universal life insurance

What is fixed index universal life insurance?


It offers a unique combination of benefits to help address many financial concerns

Fixed index universal life (FIUL) insurance is a type of permanent insurance that offers a death benefit for as long as your policy remains in force – typically that’s the rest of your life, assuming you pay the proper premium payments. (Term insurance provides a death benefit only for a specified period of time.) And that’s just the beginning:



The death benefit to your beneficiaries is generally income-tax-free. It can help cover funeral costs, pay medical bills or a mortgage, and even replace lost income.

Tax deferral

Your policy’s accumulation value grows tax-deferred – that leaves more money in your policy to take advantage of future compounding.
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Opportunity to earn interest

Your policy can earn interest based on positive growth of an external index, or by receiving fixed interest – and you're protected from loss if the market drops (although certain fees and expenses will reduce policy values).


As long as your policy is properly funded, you can pay premiums when you want and access your available cash value to spend however you’d like, using policy loans and withdrawals.¹

Learn more about the unique benefits of FIUL

1 Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse. Withdrawals in excess of premiums paid will be subject to ordinary income tax. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. If a policy is a modified endowment contract (MEC), policy loans and withdrawals will be taxable as ordinary income to the extent there are earnings in the policy. If any of these features are exercised prior to age 59½ on a MEC, a 10% federal additional tax may be imposed. Tax laws are subject to change and you should consult a tax professional.

FIUL requires qualification through health and financial underwriting.

The death benefit is generally income-tax-free when passed on to beneficiaries.

Product and feature availability may vary by state and broker/dealer.

Guarantees are backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America.

Products are issued by Allianz Life Insurance Company of North America, PO Box 59060, Minneapolis, MN 55459-0060.

This content does not apply in the state of New York.