Term vs IUL Life Insurance: Florida Edition
Choosing between term and IUL depends on your timeline and financial goals. Here's the breakdown.
Term Life Insurance
Best for: Young families, mortgage protection, income replacement
Pros:
- Extremely affordable ($30-50/month for $500k)
- Simple, straightforward coverage
- 10-30 year terms match major life stages
Cons:
- Expires when term ends
- No cash value
- Premium increases with age if renewed
IUL (Indexed Universal Life)
Best for: Long-term wealth building, tax-free growth, flexibility
Pros:
- Tax-free growth tied to market index
- Access to cash value
- Living benefits (critical illness, LTC)
- Lifetime protection
- Complements retirement savings
Cons:
- Higher initial premium ($150-300/month for same coverage)
- More complex
- Requires understanding of index mechanics
Florida Tax Advantage
Florida has no state income tax. IUL's tax-free growth is especially powerful here for long-term wealth building.
The Hybrid Approach
Many Floridians use BOTH:
- Term for immediate family protection
- IUL for long-term wealth and legacy
Next Steps
Calculate your insurance need and get personalized recommendations.