Indexed universal life insurance (IUL) is a type of permanent life insurance policy credited with potential interest based on an equity index, such as the S&P 500. It has a cash value component that can grow on a tax-deferred basis and a death benefit that can provide financial security for your loved ones.
IULs combine elements of both term life insurance and whole life insurance, offering both coverage and the potential for cash value growth. The cash value component is invested in sub-accounts which are linked to the performance of specific market indexes. It can grow tax-deferred and provides the policyholder with the potential to earn competitive returns over time. IULs also offer flexible premium payments, allowing policyholders to adjust their coverage and premiums as their needs change.