INDEX UNIVERSAL LIFE ~ IUL
Indexed universal life insurance (IUL) is permanent life insurance that offers death benefit protection when death occurs. Like other forms of permanent life insurance, your premium payments may earn interest and grow the cash value of your policy. What differentiates IUL from other permanent life insurance is the way interest is credited to the policy. In addition to offering a traditional declared interest rate, IUL also offers the ability to earn interest that is linked to the movement of a selected stock market index over a specific period of time. Even if the index goes down, your credited interest rate is never less than 0%.
The manner in which interest is credited to your IUL policy gives you the potential for strong cash value accumulation. A key benefit to remember is that it offers protection in a poorly performing market. With IUL, you don’t participate directly in the stock market and the credited interest rate is never less than zero percent, guaranteed.