National Life Group IUL Review (2026)

National Life Group at a glance: who stands behind the policy

National Life Group is a trade name, not an insurance company. The policies come from two insurers. National Life Insurance Company (NLIC) was founded in Montpelier, Vermont, in 1848. Life Insurance Company of the Southwest (LSW) was chartered in Texas in 1955, is based in Addison, Texas, and is a wholly owned subsidiary of NLIC. LSW issues most of the group's IULs. It is not licensed in New York and does not do business there, so New York residents buy from NLIC instead, and the product menu there is different.

The ownership chain matters. NLIC was a mutual company until 1999, when it reorganized under a mutual holding company. Today National Life Holding Company, a Vermont mutual insurance holding company, owns NLV Financial Corporation, which owns NLIC, which owns LSW. Certain policyholders of NLIC hold membership interests in the mutual holding company. In plain terms, there are no outside shareholders.

The group is large in this market. Its 2025 annual report shows $65.7 billion in total assets and $634 million of life insurance sales for the year, measured as weighted new annualized premium. AM Best's 2026 rating action pointed to its leadership in indexed universal life, and the annual report ranks it third in U.S. indexed universal life sales and seventh in individual life insurance sales in 2025, citing LIMRA. It sells through agents, not directly to consumers. For its annuity lineup, see our National Life Group annuity review.

How strong is National Life Group?

AM Best affirmed the A+ (Superior) financial strength rating of both NLIC and LSW on August 13, 2026, with a stable outlook. A+ is the second-highest of AM Best's 16 grades. National Life's summary of the action says AM Best cited a very strong balance sheet, strong risk-adjusted capital and strong operating performance. National Life's consumer materials list an A+ (Strong) rating from S&P and an A1 (Good) rating from Moody's for both companies as of May 19, 2026. We found no Fitch rating.

Like most large insurers, the group reinsures parts of its business, meaning it passes some of the risk to another insurer. Its audited 2025 financial statements show two moves worth knowing about. In 2024, LSW reinsured 80% of a block of single-premium and multi-year guaranteed annuities issued from 2009 to 2024 with AeCe ISA Ltd., a Bermuda reinsurer in which NLIC holds a 9.41% voting stake. And on December 31, 2025, an affiliated Vermont captive reinsurer began covering 20% of certain IUL policies issued in 2024. Reinsurance does not change who owes you: the company that issued your policy remains responsible for it.

A rating measures the company, not the policy. It tells you how likely National Life is to pay claims decades from now. It says nothing about whether a given IUL's caps and charges suit you.

For how we weigh ratings against other factors, see how we rate life insurance companies.

National Life Group's IUL lineup

National Life's July 2026 website lists its IUL policy forms. Several products share one base policy form and differ in pricing, features and who they are built for.

FlexLife is the product National Life calls its flagship IUL. It offers a level or increasing death benefit, adjustable coverage and premiums, living benefits, and a choice of index strategies that includes volatility-controlled indexes. In late 2025 National Life added two riders to it: a Premium Chronic Care Rider, at an extra charge, and a no-cost caregiver support service from an outside company, Homethrive. LSW issues FlexLife outside New York, and NLIC issues a New York version.

SummitLife is National Life's IUL for cash value accumulation. Its June 2026 flyer says it is built for people focused on wealth creation or preservation, cash value for lifetime needs, and business planning. It adds a choice of bonus designs, a 1% floor strategy and two uncapped volatility-controlled index strategies. LSW issues it, so it is not sold in New York.

SurvivorLife is survivorship IUL. It covers two people and pays the death benefit after the second death, which makes it an estate planning tool rather than an income tool for most buyers. LSW and NLIC both issue versions.

RapidProtect launched in September 2025 as an instant-decision IUL. Coverage runs from $50,000 to $500,000 for ages 0 to 60, with no medical tests and limited health questions. It is not available in New York.

PeakLife is an IUL issued by NLIC, with the same bonus designs and guaranteed minimum caps as SummitLife. Its consumer buyer's guide was revised in May 2025, but it does not appear on National Life's July 2026 list of IUL forms. Ask whether it is still offered in your state before you compare it.

The same July 2026 list also names Living Life Defender, a product on LSW's FlexLife policy form. We found no consumer materials for it, so we do not review it here.

Index options and how interest is credited

An index account does not buy stocks. Each year it credits interest based on how much an index rose, limited by a cap or participation rate, and never below a floor. National Life says all of its IULs have a 0% floor. None of the indexes count dividends.

On SummitLife, the strategies use three indexes. The S&P 500 comes three ways: a Cap Focus strategy, a Participation Focus strategy, and a 1% Floor strategy with a lower guaranteed minimum cap. The UBS Balanced Trend 5% Index and the Société Générale US Pacesetter Index each come with no cap and a participation rate guaranteed at 50% or more. There is also a Fixed Term strategy with a declared rate, guaranteed at 1.0%.

The two custom indexes use volatility control, which aims to smooth the index's ups and downs. Read National Life's own fine print before you buy one. It says the benefit of smaller drops "will not be realized" inside a strategy that already has a 0% floor. And both indexes deduct costs before any gain is measured. For the US Pacesetter Index, that includes a 0.50% yearly maintenance fee plus transaction and replication costs, and the index can use leverage of up to 200%. Our guide to volatility-controlled indexes explains why these designs can illustrate well and credit less.

Current caps and participation rates are available on request. They are current rates, not guarantees, and National Life can change them each year for new index segments, down to the guaranteed minimums. Our guide to IUL cap rates explains how to weigh a cap against charges.

How National Life treats existing policyholders

This is the section that matters most in an IUL, because you will own the policy for decades after the sale. We looked at three things: caps on older policies, cost of insurance charges, and lawsuits or regulatory actions.

Caps on policies it no longer sells

National Life publishes one useful record. Its SummitLife buyer's guide shows ten years of S&P 500 crediting on SecurePlus Paragon, an older LSW IUL that is no longer sold, including the cap in effect each year. The cap was 12.0% for the period starting May 2016 and 12.5% for the period starting May 2017. By the period starting May 2020 it was 9.75%, and by May 2023 it was 9.25%. In that last period the S&P 500 rose 26.9%, and Paragon owners were credited 9.25%.

That is the pattern to expect from any carrier: the cap you see at the sale is a current rate, not a promise for the life of the policy. We found no consumer-facing record of today's caps on Paragon or other closed National Life IULs. If you own one, your annual statement shows your current rates. Compare them with your original illustration.

Cost of insurance charges

The cost of insurance is the monthly charge for the death benefit itself. A carrier raising it on existing policies is one of the biggest risks in any universal life policy. We found no public record of National Life raising cost of insurance rates on its IUL policies, and no cost of insurance lawsuit against it. We could not verify that from company filings, so treat it as unconfirmed rather than a clean record.

Lawsuits and regulatory actions

The group's audited financial statements disclose one class action tied to how its policies are sold. In In re PFA Insurance Marketing Litigation, in the U.S. District Court for the Northern District of California, a consolidated complaint filed April 30, 2020 accused Premier Financial Alliance, an independent marketing organization LSW works with, of violating California and New Jersey consumer laws, including California's endless chain scheme law. The plaintiffs argued LSW should be held liable because of its business relationship with PFA. LSW disputed the claims and settled without admitting wrongdoing. The court granted final approval of the settlement on February 5, 2024. The statements do not give the settlement amount.

The group's 2025 financial statements describe only ordinary-course claims and examinations, and management says it expects none to have a material effect. Some plaintiff law firms advertise that they are investigating IUL sales by many carriers, including National Life. An advertisement is not a lawsuit, and we did not treat it as one. We have not completed a state-by-state review of regulatory actions and market conduct exams, so we make no claim either way on that point. Our guide to IUL lawsuits covers the wider picture.

Riders and living benefits

Living benefits are what National Life is known for. They come from accelerated benefit riders (ABRs), which let the owner take part of the death benefit early if the insured has a qualifying health event. They cost no added premium. National Life reports paying $128 million in living benefits in 2025.

Know the limits before you count on them:

• The payout is discounted. You receive less than the death benefit you give up, because the money comes early. An administrative fee applies when you exercise a rider.
• Lifetime caps apply. National Life's 2025 buyer's guides cap lifetime payouts at $1,500,000 for terminal, chronic and Alzheimer's claims and $1,000,000 for critical illness and injury. It reserves the right to change those limits, but not below $500,000.
• Not everyone qualifies. Critical illness and injury riders are limited to issue ages 0 to 64. The Alzheimer's rider is not available if a parent or sibling has a history of the disease. Covered conditions vary by state.
• It is not long-term care insurance. The money can be spent on anything, but the amount depends on your health and the policy at the time of the claim. Using it reduces the death benefit and cash value, may be taxable, and may affect eligibility for public assistance.

FlexLife also offers a Premium Chronic Care Rider for an extra charge. National Life says it can potentially pay out the full death benefit, up to $3 million, for a qualifying chronic illness, dollar for dollar rather than discounted, as a monthly payment of up to 2% or 4% of the death benefit (chosen at issue), with no waiting period. It is not available in California or New York.

Most of National Life's IULs also carry a Lifetime Income Benefit Rider. Once the insured is between 60 and 85 and the policy has been in force at least 10 years, the owner can turn the cash value into loan-funded income guaranteed for life, if the policy has enough value. A monthly charge applies during the income period, and you cannot pay premiums or take other loans or withdrawals while it runs. Our guides to IUL living benefits and the chronic illness rider go deeper.

Underwriting and service

National Life underwrites its IULs, meaning it reviews your health and other information before it sets a price, and the steps depend on your age and the amount. RapidProtect is built for speed: an applicant can get a decision in minutes with no medical tests. National Life raised its large case retention, the amount of coverage it keeps on one life, from $2 million to $8 million in May 2026. For what the process looks like, see IUL underwriting.

For policy service, National Life lists this contact information:

Who National Life Group fits, and who should look elsewhere

National Life is a strong candidate if you:

• Want living benefits for serious illness built into a permanent policy at no added premium.
• Want a flexible permanent policy with living benefits (FlexLife), or are a middle-market family that wants fast coverage without medical tests (RapidProtect).
• Can fund a larger policy for many years and want a choice of bonus designs (SummitLife).
• Want coverage on two lives for estate planning (SurvivorLife).

Look elsewhere if you:

• Live in New York and want SummitLife, RapidProtect or the LSW versions of its policies. Ask what NLIC offers there.
• Might need to surrender in the first 10 years. On SummitLife and PeakLife, surrender charges make early exits expensive; ask for the schedule on any policy you consider.
• Want charge amounts and current caps in writing before you talk to anyone. You will need an illustration.
• Are buying mainly for long-term care. Accelerated benefits are discounted and capped. A dedicated long-term care policy or hybrid may fit better.
• Mainly want the cheapest permanent death benefit. Guaranteed universal life or term may cost less. See who should not buy IUL.

A word on taxes, since IUL is often sold on them. Income from an IUL usually comes from withdrawals up to your premiums paid, then policy loans. Both are tax-free only while the policy stays in force and is not a modified endowment contract. If the policy lapses or is surrendered with a loan outstanding, the gain can become taxable in a single year. Our IUL taxes guide walks through the rules.

To compare National Life with other carriers, start with our list of the best IUL companies.