guaranteed rate set by the insurer. https://www.investopedia.com/articles/insurance/09/indexed- universal-life-insurance.asp
What Is Indexed Universal Life Insurance (IUL)? e (IUL)?
What Is Indexed Universal Life Insurance? Indexed universal life (IUL) insurance is a type of permanent life insurance, meaning it has a cash value component along with a death benefit. The money in a policyholder's cash value account can earn interest by tracking a stock market index selected by the insurer, such as the Nasdaq-100 or the Standard & Poor's 500.1 You may also have a fixed-rate account and can choose how much you want to go into each account. Although the interest rate derived from the equity index account can fluctuate, the policy does offer an interest rate guarantee, which limits your losses. It also may cap your gains. These policies are more volatile than fixed universal life policies, but less risky than variable UL insurance policies because no investment is made in equity positions.
KEY TAKEAWAYS • Indexed universal life (IUL) insurance lets the
policyholder decide how much cash value to assign to a fixed-rate account and an equity-indexed account. • Indexed universal life is a form of permanent life insurance and like universal life, it allows for flexible premiums and possibly a flexible death benefit. • IUL insurance policies can track a number of well-known equity indexes, such as the S&P 500 or the Nasdaq-100 to
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