Indexed Universal Life

"Indexed Universal Life" (IUL) is a type of permanent life insurance that combines the death benefit protection of traditional life insurance with the potential for cash value accumulation based on the performance of a specific market index, often the S&P 500.

Unlike traditional universal life insurance that offers a fixed interest rate on the cash value, IUL provides the opportunity for higher returns linked to positive market performance.

However, to protect policyholders from market downturns, IUL policies typically include a guaranteed minimum interest rate, ensuring that the cash value won't decrease due to negative market performance.