Indexed Universal Life (IUL) combines lifelong insurance coverage with a cash value component that grows over time based on a market index, like the S&P 500, though funds aren’t directly invested in the market. This means that while the cash value grows when the market performs well, it’s protected from market downturns.

Here’s how it works:

• Lifelong Coverage: IUL offers permanent protection, so as long as you maintain the policy, your family is covered.

• Interest Growth with Market Upside: The cash value increases based on market index performance but remains protected from direct investment risk. A cap limits the growth during strong markets, while a floor prevents loss in down markets, acting as a safety net for your investment.

• Flexible Premiums: You have the ability to adjust premium payments over time, allowing for flexibility if financial needs shift.

• Tax-Advantaged Growth: The cash value grows tax-free, and you can access it through tax-free loans, which can be an option for supplemental retirement income without triggering taxes.