Insurance Disclosures

Last updated: May 6, 2026

This page consolidates the licensing, compensation, product-risk, and non-deposit disclosures that apply to every quote, illustration, and policy placed through itsiulinsuranceali.com by Ali Taqi, a Florida-licensed insurance agent (License #W393613). It supplements (not replaces) any disclosures contained in the carrier-issued application, illustration, and policy documents you receive when you apply for coverage.

See also: Privacy Policy · Terms of Service.

Licensing

Ali Taqi is a Life & Health insurance agent licensed by the Florida Department of Financial Services (License #W393613), serving all 67 Florida counties from Naples, FL. Lines of authority: Life and Health.

Verify any Florida-licensed agent at the Florida Department of Financial Services public licensee search.

Independent-Broker Status

Ali is an independent agent — not a captive agent of any single carrier. He is appointed with 10+ A-rated life insurance carriers; appointments change over time. Being independent means Ali recommends the carrier and IUL chassis (cap, floor, participation rate, indexed-loan structure) that best fit your funding profile, time horizon, and risk tolerance — not whichever carrier pays the highest commission.

IUL — Product-Specific Risk Disclosures

Indexed Universal Life (IUL) is permanent life insurance with cash-value growth linked to a stock-market index (commonly the S&P 500 price index — not including dividends). You do not own the index. The carrier credits interest based on a contract formula, subject to a cap (maximum credited rate), a floor (minimum credited rate, typically 0%), and a participation rate (the percentage of index movement credited).

Regulatory framework. IUL illustrations sold in Florida are governed by NAIC Actuarial Guideline 49-A (AG 49-A), which constrains illustrated crediting rates, indexed-loan arbitrage, and bonus assumptions to limit unsupportable projections. Tax treatment is governed by IRC § 7702 (definition of life insurance) and IRC § 7702A (Modified Endowment Contract test). Ali's illustrations comply with AG 49-A; we additionally stress-test at 4–5% assumed rates rather than only the AG 49-A maximum.

The following risks apply to every IUL policy you may apply for through this site:

Not a direct investment in the stock market or any security. IUL is an insurance contract. You do not own shares, units, ETFs, or any security. Credited interest is determined by the contract formula, not by direct market participation. IUL is not a registered security and Ali is not a registered investment adviser or broker-dealer.
Not principal-protected. The contractual floor protects against negative index crediting, but cost-of-insurance charges, monthly expense charges, premium-load charges, and per-thousand charges continue to be deducted from account value regardless of crediting performance. In zero-crediting years, fees exceed credits and account value declines.
Caps, floors, and participation rates can be changed by the carrier. Most IUL contracts give the carrier discretion to adjust caps and participation rates in the future, subject to contract minimums. The illustrated scenario is not guaranteed.
Illustrated growth is not guaranteed. Any crediting-rate illustration you see on this site or in a carrier illustration is a projection, not a promise. Past index performance does not guarantee future results. Actual index performance may be materially lower and may be zero in some crediting periods.
Market-cap-driven returns. Caps materially limit upside in strong index years. A year in which the index returns 25% may credit only the cap (e.g., 9–11% depending on carrier and crediting method). Compounded over decades, the gap between raw index performance and credited rate is significant.
Surrender charges. IUL policies typically carry surrender charges for the first 10–15 years. Surrendering early returns substantially less than the premiums paid, and in some cases returns zero.
Lapse risk if premiums are insufficient. If premiums are insufficient to cover ongoing charges — especially in years with low or zero crediting — the policy can lapse, resulting in loss of coverage and potential tax consequences. Funding an IUL below illustrated levels materially raises lapse risk.
Policy loans reduce the death benefit. Indexed loan strategies, participating loans, and wash-loan features are carrier-specific and complex. Review each carrier's loan provisions carefully.
Tax treatment depends on IRC § 7702 and MEC compliance. Contributions in excess of IRS limits can cause the policy to be classified as a Modified Endowment Contract ("MEC"), eliminating the tax-advantaged distribution treatment often associated with IUL.
Not suitable for short-term needs. IUL is a long-duration product. Surrender in the first 10+ years typically produces a significant loss relative to premiums paid.

IUL — What It Is and What It Is NOT

Indexed Universal Life is permanent life insurance with a tax-deferred cash-value mechanism. The IUL category is regularly conflated with retirement, banking, and securities products in marketing materials and consumer media. The clarifications below are part of the disclosure on every quote we place.

NOT a Roth IRA, traditional IRA, or 401(k)

IUL is not a registered retirement account. It is a life-insurance contract regulated by state insurance departments (in Florida, the Department of Financial Services), not the IRS retirement-plan rules under IRC § 401, § 408, or § 408A. IUL is not a substitute for an employer 401(k) match (always capture employer match first). IUL has no annual contribution limit (subject to IRC § 7702 funding tests + § 7702A non-MEC limits) and no income test, in contrast to Roth IRA's $7,500 base / $8,600 age-50+ total caps in 2026 and MAGI phaseouts; tax-advantaged treatment of policy loans is governed by the life-insurance tax framework, not the retirement-account tax framework.

NOT principal-protected

The contractual floor (typically 0%) protects against negative index crediting — it does not protect against erosion of account value from policy charges. Cost-of-insurance, monthly expense charges, premium-load charges, and per-thousand charges are deducted from account value regardless of crediting performance. In zero-crediting years, fees exceed credits and account value declines. "Floor" ≠ "no loss."

NOT FDIC-insured

IUL is not a deposit at a bank or other depository institution. It is not insured by the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Share Insurance Fund (NCUSIF), or any federal or state government agency. Unlike a savings account, money-market account, or certificate of deposit, IUL account value is subject to policy charges and crediting variability and may decline. (See NOT-FDIC notice above.)

NOT a guaranteed return

Caps, floors, participation rates, bonus rates, and indexed-loan arbitrage are subject to carrier discretion within contract minimums and AG 49-A constraints. Illustrated cash-value growth is a projection. Past index performance does not guarantee future results. Actual credited rates over a multi-decade hold may be materially lower than illustrated, and may be zero in some crediting periods. Ali stress-tests every illustration at 4–5% assumed rates rather than the AG 49-A maximum so clients see a realistic downside.

NOT short-term liquid savings

IUL policies typically carry surrender charges for the first 10–15 years. Surrendering early returns substantially less than premiums paid; in some cases the surrender value is zero in years 1–3. IUL is a long-duration product designed for buyers with a 20+ year horizon and matching cash-flow stability to fund premiums consistently. It is not suitable as an emergency fund or as a short-term savings vehicle.

NOT a registered security

IUL is an insurance contract, not a registered security. You do not own shares, units, ETFs, or any direct interest in the index — the carrier credits interest based on a contract formula. IUL is not registered with the U.S. Securities and Exchange Commission (SEC) or any state securities regulator, and is not sold under a prospectus. Ali Taqi is a licensed insurance agent, not a registered investment adviser, broker-dealer, or registered representative; nothing on this site constitutes investment advice or a securities offering.

How Ali Gets Paid

When you purchase a policy, the issuing carrier pays Ali a commission based on first-year target premium plus smaller renewal commissions in later years. You do not pay extra for working with Ali versus going directly to a carrier — the published carrier rate already includes the distribution cost. Ali does not charge consulting fees, broker fees, or policy-preparation fees. Premium is collected by the carrier through its own application system; Ali never holds or commingles customer premium funds.

Quotes and Illustrations Are Non-Binding

Every premium figure, cap, floor, participation rate, or cash-value projection shown on this site or in a carrier illustration is a general illustration, not a binding offer of insurance and not a guarantee of policy outcome. No coverage is in force until: (1) you sign a complete carrier application, (2) the carrier approves the application and issues a policy, and (3) the first premium is paid.

Complaints

If you have a concern about the service you received, please contact Ali first: (239) 800-8508 · itsinsuranceali@gmail.com.

If your concern isn't resolved, you may file a complaint with the Florida Department of Financial Services, Division of Consumer Services: myfloridacfo.com/division/consumers or 1-877-693-5236.

Contact

Ali Taqi, Licensed Florida Insurance Agent (FL License #W393613)
Naples, FL
itsinsuranceali@gmail.com
(239) 800-8508