Indexed Universal Life (IUL): How It Works

What is IUL?

Indexed universal life is permanent life insurance with flexible features and potential cash value. Interest crediting may reference an external index but does not represent direct investment in that index.

What affects cash value?

Premiums, policy charges, insurance costs, credited interest, withdrawals, and loans can change policy values. Caps, participation rates, and other crediting terms may change subject to contract provisions.

What are the risks?

Non-guaranteed illustrations are not promises. Insufficient funding, rising charges, or loans may cause a policy to lapse and could create tax consequences.

Explore related topics

• Life Insurance in the USA: Understanding Your Options
• Term Life Insurance: Coverage, Cost and Trade-Offs
• Living Benefits in Life Insurance: What to Know
• Annuities for Retirement: Fixed and Fixed Indexed

For general education only, not personalized advice. Policy terms, limitations, eligibility and product availability vary.