Indexed Universal 
Life Insurance (IUL)

Indexed universal life (IUL) insurance is a type of permanent life insurance that provides a death benefit along with a cash value component that grows based on the performance of a selected stock market index, such as the S&P 500. Unlike traditional universal life insurance, IUL offers the potential for higher returns linked to market gains, while typically protecting against market losses with a minimum guaranteed interest rate.

 

IUL accomplishes the dual goals of providing lifelong coverage and offering an investment opportunity with tax-deferred cash value growth. Its importance lies in its flexibility and potential for wealth accumulation, helping policyholders meet various financial goals, such as supplementing retirement income, funding education, or leaving a financial legacy for their beneficiaries.