Life Insurance Basics
What is indexed universal life insurance?
Indexed universal life insurance (IUL) is a type of permanent life insurance that credits interest based on the performance of a market index (such as the S&P 500) while protecting your principal. IUL provides flexible premiums, adjustable death benefit, and tax-deferred cash value growth.
Key Points
- IUL: permanent life insurance with index-linked cash value growth
- Principal is protected — cannot lose money
- Flexible premiums and adjustable death benefit
- Tax-deferred cash value growth
- Best for: permanent coverage with market-linked growth potential