Protection Strategy
The IUL Shield
Max-funded indexed universal life, engineered with the Herron Method.
The Bucket & the Shield
- Your money fills a bucket.
- The bucket grows with the market index.
- A shield covers the bucket.
- A market drop isn't subtracted from it.
- In a down year the index credit is 0% — losses aren't passed through.
The 0% floor applies to the index credit, not to the account value: policy charges are deducted regardless, so cash value can still fall in a year with no credit. Caps and participation rates limit the upside and are set by the carrier, which can change them.
Both buckets are full. Run the downturn to compare.
The Added Premium Pipeline
- Most policies: big insurance, small savings.
- The Herron Method flips the design.
- Buy the minimum insurance allowed.
- Pour the maximum cash through the pipeline.
- More of every dollar lands in your bucket.
The OLP Tax Emergency Brake
- Retirement income comes from policy loans.
- “What if I borrow too much?”
- The Overloan Protection rider watches for you.
- Too close to the edge? Brake engages.
- Policy self-completes. No surprise tax bill.
Guaranteed Growth & Income
The Annuity Anchors
Two anchors: a guaranteed-rate vault, and an indexed engine that becomes a paycheck for life.
The Guaranteed Vault
- One interest rate. Guaranteed. In writing.
- Locked for the full term you choose.
- Your principal never goes backward.
- Taxes wait until you take money out.
- Think CD — built for retirement money.
Choose a term. Lock the rate. Sleep well.
The 0% Floor Engine
- Your value climbs a ladder.
- Every gain locks in. Permanently.
- Market falls? Your worst year is 0%.
- You never have to climb back from a loss.
- Zero is your hero.
Illustrative pattern, indexed to 100 — not any actual index history.
How the Growth Is Measured
- The shield is fixed. Forever. In the contract.
- The bucket’s opening can change each year.
- Cap — a ceiling. Keep everything up to it.
- Participation — a share. Keep a slice of any gain.
- Spread — a toll. Keep everything past it.
- The carrier declares these yearly. The 0% floor never moves.
Cap
Participation
Spread
Illustrative annual point-to-point crediting. Actual rates are declared by the carrier per contract and strategy.
The Lifetime Income Spigot
- Your savings fill a tank.
- At retirement, you open the spigot.
- Out flows a paycheck. Every year.
- The paycheck outlives the tank.
- Guaranteed by contract. For life.
The tank is full. Open the spigot to begin income.
Interactive Projections
The Numbers
Adjust the assumptions — the projections respond in real time.
Design the policy
Sets the growth horizon — the years between today and first income.
Capped at 8% to stay conservative. The carrier illustration governs.
Built-in drag: 1.5% for policy years 1–10 (fees + insurance cost), 0.5% thereafter.
Income assumes a 6.5% annual tax-free loan draw against the cash pool at income age.
Total you put in
Cash pool at age 65
Tax-free income / yr
beginning at age 65
Cash value vs. dollars in
Show the math — year by year (tap to open)
| Year | Age | Premium in | Drag | Net credit | Cash value |
|---|
Design the income
Lifetime Income Benefit Rider — set by contract and age at activation.
Lifetime annual paycheck
every year, starting at age — for as long as you live
Payable for life under the income rider — the actual amount is set by the contract’s roll-up and payout rates, not this illustration.
Income base at activation
You recoup principal by age
Income to age 90
The floor, in one picture
Market's worst year
−38%
e.g., 2008-style shock
Your worst year
0%
the floor, by contract
Design the vault
Declared by the carrier and locked by contract for the full term.
A CD is taxed every year. The vault defers tax until withdrawal, so interest compounds untouched.
Comparison assumes the same rate on both and a full lump-sum withdrawal at term end.
Guaranteed value at term end
after years at — locked by contract
This figure is contractually guaranteed, backed by the issuing carrier.
Guaranteed interest earned
Same-rate CD, after tax
Deferral advantage, after tax
Vault vs. taxable CD
Withdrawals before age 59½ may incur a 10% IRS penalty; surrender charges apply within the term.
Hypothetical illustration only. Not a guarantee except where stated as contractual. The carrier's official illustration and contract govern all values.