Indexed Universal Life Policy at Life

Indexed Universal Life Policy. Indexed universal life insurance is a type of permanent life insurance, which means it has a cash value component in addition to a death benefit. Your premium is deposited into the policy’s cash account and reduced by policy charges and expenses.

Indexed universal life insurance is one of those insurance types that provides more for a policyholder but can quickly get complicated in the process. Indexed universal life insurance is a type of permanent life insurance — a life insurance policy that stays in effect for your whole life as long as the premiums are paid (as opposed to a term policy, which expires after a set amount of time). Indexed universal life insurance typically offers riders.

Top 10 Pros and Cons of Variable Universal Life Insurance

An indexed universal life insurance policy gives the policyholder the opportunity to allocate cash value amounts to either a fixed account. Indexed universal life insurance is a type of permanent life insurance — a life insurance policy that stays in effect for your whole life as long as the premiums are paid (as opposed to a term policy, which expires after a set amount of time). A significant advantage of any type of universal life insurance policy, including iul, is that the premium can be paid by the policy’s cash value for as long as there is enough money in the account to make those premium payments. This type of life insurance offers permanent coverage as long as premiums are paid.