Indexed Universal Life (IUL) insurance is a permanent policy that combines a death benefit with a cash value component. What sets it apart is how that cash grows: gains are tied to a stock market index (like the S&P 500) rather than a fixed rate.
It offers a “best of both worlds” appeal:
- Upside Potential: You earn interest when the market performs well, up to a certain cap.
- Downside Protection: Most policies feature a 0% floor, ensuring you don’t lose principal during market crashes.
- Flexibility: You can often adjust premiums and death benefits as your financial needs evolve.