Indexed universal life insurance (IUL) offers a blend of life insurance protection and an investment opportunity. By linking the policy's cash value component to a market index, IUL offers tax-deferred growth opportunities while providing beneficiaries with a death benefit.
IUL's flexibility in premium payments and death benefits—along with the potential for higher returns—makes it appealing to a wide range of individuals, from those seeking investment opportunities to those looking for adaptable life insurance coverage. However, getting IUL insurance requires careful consideration, as it comes with market risks, caps, floors and potential fees.