Indexed universal life insurance receives interest crediting based on the performance of some external index, such as the Standard & Poor’s 500.

An insurance company purchase options in the S&P 500 and invest a portion of your premium. These options have a 0-2% floor and a 10-13% cap.

Top 7 Benefits of Indexed Universal Life Insurance Policies

1. Protection of your principal against market losses
2. Growth potential when the market is up
3. Taxed the same as Life Insurance
4. Tax-free access to cash values
5. Lock in positive returns
6. Adjustable death benefits with flexible premiums
7. Permanent, tax-free death benefit