Maximum Premium Indexing (MPI):
Grow Your Wealth with Built-In Protection
What if you could use the insurance company's money to accelerate your compounding interest while keeping your wealth protected from market downturns?
That's the idea behind Maximum Premium Indexing (MPI) — a cash accumulation strategy using a specially designed indexed universal life (IUL) insurance policy.
MPI can help you:
- Build wealth over time using advantages unique to life insurance
- Protect your gains from market downturns
- Get tax-free access to your money in retirement
- Leave a death benefit for your family if something happens
How The MPI Premium Strategy Works
The MPI strategy is built on indexed universal life insurance, but structured to maximize cash value growth rather than death benefit. Here's how it works:
- You fund a specially designed IUL policy – Premiums you pay are allocated to maximize the cash value accumulation while keeping the death benefit as low as tax law allows
- Your cash value grows based on market index performance – Your money is linked to an index (like the S&P 500). When the index goes up, your cash value grows.
- When the market drops, you don't lose money – Your policy has a "floor" (typically 0%) which means even if the index drops, your cash value stays the same. You don't lose what you've gained.
- Accelerate your compounding potential with "Secure Leverage" – Once you've accumulated enough cash in the policy, you can start taking policy loans. Those funds are strategically placed back into your policy as new premiums, providing additional growth potential.
- Access your money tax-free in retirement – This gives you tax-free access to your cash value, tax-free income during retirement, and the flexibility to supplement income.
Key Benefits Of The MPI Premium Strategy
- Tax-advantaged growth – Your money grows without being taxed every year on the gains. This gives you more compound growth over time compared to taxable investments.
- Downside protection – Participate in market gains when the index goes up, but when the market crashes, your cash value is protected by a 0% floor. You can't lose money due to market performance.
- Tax-free retirement income – Access your cash value through policy loans, which are tax-free. This creates tax-free retirement income that is sheltered from income taxes.
- Increased Withdrawal Rate Potential – MPI does not have to follow the 4% rule of withdrawals because it is not a risk-based stock portfolio. It can use up to a 10% withdrawal rate, increasing your usable retirement income potential.
- Death benefit for your family – Even though MPI focuses on cash value growth, the IUL policy still provides a death benefit to your beneficiaries if you pass away.
- Creditor protection – In most states, life insurance cash value is protected from creditors and lawsuits.
Who Is The MPI Premium Strategy For?
MPI may be a good fit if you're between ages 25-55 with a 20+ year time horizon, have stable income, and can commit to consistent long-term contributions. It's ideal for those who want increased retirement income potential over traditional retirement vehicles.
- Want protection from market losses while maintaining growth potential
- Can commit to saving at least 10% of income consistently
- Are looking for an alternative or supplement to traditional retirement accounts
- Want increased retirement income potential — MPI could potentially produce more than 2x the spendable income of traditional vehicles
- Value tax-advantaged retirement income over maximum short-term growth
Important Things To Understand About MPI
- MPI is a long-term strategy – which means you'll start seeing the real benefits at the 10+ year mark as the secure leverage strategy starts to compound. The policy must be structured correctly to maximize cash value growth.
- Results depend on proper design and funding – You need to fund the policy adequately and consistently over many years. If you skip payments/premiums early, you may not see the results you expect.
- There are caps on your gains – While you're protected from losses, there's also a cap on how much you can earn when the index performs well. Caps range from 8% to 12% depending on the carrier.
- This is part of a strategy, not a single solution – MPI was specifically designed for maximum spendable retirement income and to be efficient with your dollars but it should complement your overall financial plan, not replace it.
Why Work With Me?
I help my clients implement the MPI Strategy to target increased tax-free retirement income potential. I use MPI to help clients harness the power of compound interest through the 0% floor feature, secure leverage, and tax-free policy loans as income.
Not every agent understands the difference between a standard IUL policy and one designed specifically for MPI. A policy designed wrong can cost you thousands in lost growth.
- Licensed insurance professional specializing in MPI – Deep expertise in Maximum Premium Indexing strategy design and implementation.
- I'm an independent agent, not a captive agent – I'm not selling products for one company. I shop the market to find the best fit for your goals.
- I work with multiple carriers – Different companies have different caps, floors, and policy structures. I'll find the one that works best for you.
- I explain everything in plain English – No jargon, no confusing illustrations. Just clear explanations so you understand what you're buying.
- I design policies correctly – This is crucial. MPI requires the policy to be structured to maximize cash value and leverage compound cycles. I know how to do that.
Want To Learn More?
If you're curious whether MPI could be a fit for your financial goals, I'd be happy to walk you through how it works — with real numbers based on your situation.
There's no obligation, no pressure — just a simple conversation designed to help you make the right choice for your goals.
Want to learn the full MPI strategy? Read our Complete MPI Guide.