An Index Universal Life policy is a permanent life insurance policy with a cash value component that earns interest based on the performance of a market index (e.g., S&P 500) without directly investing your premiums in the market.

The policy credits interest using index performance subject to caps, participation rates, or spreads; many IULs offer a floor (often 0%) so negative index returns do not reduce credited interest.

IULs typically protect against negative index returns via a floor, but upside is limited by caps/participation and results depend on the insurer's crediting rules and fees.

Yes — accumulated cash value can be accessed tax-free through loans or withdrawals to supplement retirement income, but performance, fees, and outstanding loans impact long-term results.

Costs include premiums, cost of insurance, rider fees, and policy charges; risks include policy underperformance, loan interest, and potential lapse if the policy is not properly funded.

Contact our IUL specialists for a personalized illustration and needs analysis so we can model projected cash value and death benefit scenarios tailored to your goals.