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Indexed Universal Life (IUL) Insurance, Explained
Plain-English guides to indexed universal life (IUL): what it is, how the cash value is credited, what it costs and what to ask before you buy. Reviewed by a licensed agent.
What IUL is, and isn’t
Indexed universal life (IUL) is permanent life insurance with flexible premiums, a death benefit and a cash value. The interest credited to the cash value is tied to a stock market index, within limits such as a cap and a participation rate, but your money isn’t invested in the index. FINRA says indexed universal life is generally not considered a security.
IUL is insurance, not an investment account. The policy has insurance charges and fees, can have surrender charges, and can lapse if the cash value can’t cover its costs. Sales illustrations show projections, not promises, so always ask to see the guaranteed values next to the non-guaranteed ones. For tax questions, talk with a tax advisor.
Policy features, charges and eligibility vary by insurance company and state. RestAssured is not an insurance company or an insurance agency and doesn’t give tax or investment advice. RestAssured connects callers with independently licensed insurance agents.