Indexed universal life (IUL) insurance policies are one of the Permanent Insurance policies. This kind policies has its own place in the financial planning, protection and building legacy.

Indexed Universal Life (IUL) product works for both protection and builds cash value in the policy. A portion of the policyholder’s premium payments is directed toward annual renewable term insurance with the remainder added to the cash value of the policy after fees are deducted. On a monthly/annual basis, the cash value is credited with interest based on increases in an equity index. These policies leverage call options to gain upside exposure to equity indexes without the risk of losses.