What is indexed universal life?
IUL is a form of universal life insurance. Interest credited to some cash-value accounts is based in part on the performance of an external index, under the insurer’s formula. It is not a direct investment in the index, and policy charges still apply.
How it works
Premiums help pay insurance costs and may build cash value. Interest crediting can be limited by caps, participation rates, spreads, and other terms. Even where an interest-crediting floor applies, charges or loans can reduce cash value. Insufficient funding can cause a lapse.
Situations worth discussing
- A long-term need for permanent insurance
- Willingness to review policy performance regularly
- A budget able to support changing insurance costs
- Comfort evaluating both guarantees and assumptions
Bring your questions to Direct Life Advisors
We can help you understand the choices and prepare for an informed decision. Product availability, premiums, and eligibility must be confirmed for your state and circumstances. No coverage is in force until the insurer’s requirements are met.