Every policy is a trade between cost, permanence and control. Adjust the scenario to see illustrative figures for all three. Term shown 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.
Composite estimate · class not specified
Flexible premium. Index-credited, not guaranteed.
Composite estimate · class not specified
*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 indexed UL figure above is a planned premium sized to the same death benefit as the other two. That is only one way to fund an IUL, and arguably not the interesting one.
Because IUL premiums are flexible within contractual limits, the same policy can be funded at the minimum needed to keep it in force, at roughly whole life levels, or substantially higher. An IUL designed for accumulation - maximum premium relative to the minimum death benefit - can build account value considerably faster than the figure shown above, and faster than comparable whole life, because more of each dollar goes to cash value rather than to insurance cost.
There is also a ceiling on overfunding: contributions above the seven-pay test limit reclassify the policy as a Modified Endowment Contract, which permanently changes the tax treatment. Designing for maximum funding means funding to just under that line, which is a technical exercise involving your CPA. More on how IUL actually works.
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. The term figures are calibrated against real rates pulled in September 2026 for a Texas male applicant at Preferred non-tobacco, so they are grounded rather than invented - though an applicant in a lower class will pay meaningfully more. The whole life and indexed UL figures are generic composite structures with no underwriting class specified, and are there to show the relationship between the three products rather than a price you could buy. Treat all of it as a starting point for budgeting, not a number to plan around.
Because IUL premiums are flexible within contractual limits while whole life premiums are fixed. The figure shown is a planned premium sized to the same death benefit, which is only one way to fund an IUL. Funding it substantially higher relative to the death benefit changes both the premium and the account value considerably, and is how IUL is designed when accumulation rather than death benefit is the goal.
It can, under specific conditions, and it is not guaranteed to. An IUL designed for accumulation and funded aggressively can build account value faster than comparable whole life, because more of each dollar goes to cash value and index crediting can exceed a dividend rate in strong years. But that outcome depends on cap rates and internal charges the carrier may change. Whole life's lower ceiling comes with guaranteed cash value and a guaranteed premium that IUL does not offer. An IUL funded at the minimum carries the performance risk without the funding that justifies it.
The account value curve reflects index crediting consistent with current market caps, which on most new-issue S&P 500 annual point-to-point strategies run roughly 8% to 12% as of 2026 - down from commonly 12% to 13% in 2019. Caps and participation rates are non-guaranteed elements that carriers can change, subject to contractual minimums. No calculator can predict them.
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 indexed UL figures are generic composite structures with no underwriting class specified and are not tied to any carrier or product. 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 are generic composite structures with no underwriting class specified. 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.