Equity Index

Equity Index refers to a stock market index that tracks the performance of a selected group of stocks, such as the S&P 500, Nasdaq, or Dow Jones Industrial Average.

The interest credited to an IUL policy's cash value is typically linked to the performance of one or more of these equity indices, subject to certain limits and conditions.

When the equity index experiences growth, the policyholder's cash value may increase up to a predefined cap, while downturns in the index may be buffered by a guaranteed minimum interest rate, thereby offering a degree of protection against market losses.