Most conversations about Indexed Universal Life (IUL) policies focus on the mechanics — caps, participation rates, floors, expenses, etc. Important topics, yes, but they often overshadow what may be the most impactful risk: carrier discretion.

Unlike whole life or guaranteed UL, very few levers in IULs are truly locked in. Insurers maintain wide authority to adjust crediting methods, internal charges, and even index options.

Why does this matter? Because an IUL is a long-term contract. Most policyholders will hold them for decades. And over that time, leadership teams change, insurers merge and priorities shift. A company deeply committed to the life insurance business today may take a different posture tomorrow.

That means the policy you start with may not be the same policy you live with 20 or 30 years down the road—not because of market performance, but because of the choices the carrier makes.