Indexed universal life insurance

Indexed universal life (IUL) insurance policies can last your entire life and often let you vary your premiums and death benefit, within certain limits. This kind of policy can give you flexibility in the future.

It builds cash value, and gains are tied to an index such as the Nasdaq 100, Russell 2000, S&P 500 or even a combination. You will likely have a choice of index. While your cash value is calculated using the index, it doesn’t mean your cash value is actually invested in that index.

An IUL policy might guarantee that your interest rate will never be less than zero. This number is called the index floor. So if your index tanks, you won’t lose cash value.