Indexed Universal Life (IUL): Growth Linked to Market Indexes
- Sahil Virani
- Mar 20
- 1 min read
An Indexed Universal Life (IUL) policy is a type of permanent life insurance where cash value growth is linked to a market index.
Examples may include indexes such as the S&P 500.
However, the money is not directly invested in the market.
Instead, the policy may receive interest credits based on the performance of the index.
Example
If the index grows 8% in a given year, the policy may receive interest up to a specified cap.
If the market declines, many IUL structures include a floor that prevents negative interest crediting.
This structure is designed to provide:
Potential for growth
Protection from certain market losses
At the same time, the policy maintains life insurance protection.
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— Sahil Virani
