What it is
Indexed universal life combines permanent life insurance with flexible features and a cash-value account whose credited interest is tied to an index subject to policy limits and terms.
Potential uses
- Permanent protection with flexibility
- Long-term cash-value planning
- Legacy and supplemental-income discussions
Things to consider
- Returns are not direct investments in an index
- Caps, participation rates, costs, and floors affect outcomes
- Policies require ongoing monitoring and appropriate funding