Indexed Universal Life Insurance – Flexibility and Safety
Indexed Universal Life (IUL) Insurance policies are permanent life insurance policies that have a death benefit and a cash value. The death benefit is paid when you die and is typically tax free. The cash value is the accumulated cash inside the policy, as a result of payments into the policy, net of the cost of insurance, fees and charges. The cash value can earn interest based on price changes (excluding dividends) in an index, such as the S&P 500. Once interest is credited to your life insurance policy for an index term, those earnings are locked in and declines in the index do not reduce cash values (before the cost of insurance, fees and charges).