Indexed Universal Life (IUL)

Indexed Universal Life is a permanent life insurance that include a death benefit and a saving component base on accumulated cash value. A portion of the premium paid goes to the cost of insurance and the other portion accumulates compound interest build cash value.

The rate of increase is based on the index tied to the market but not invested directly in the market.

For protection there is a floor that is a guaranteed minimum interest rate which protects one from losing money when there is a downturn in the market.