Indexed universal life
Life insurance with policy-specific index-linked crediting.
Indexed universal life is life insurance—not direct ownership of a stock-market index or a securities investment. Interest credited to policy value is determined under the contract’s crediting methods and limits.
How crediting differs from investing
The policy may reference the performance of an external index to calculate interest. The policyholder does not own index shares and may not receive the index’s full return or dividends.
Charges still apply
Cost-of-insurance charges, administrative expenses, rider charges, and other deductions can reduce policy value even when credited interest is zero. Flexible premiums do not mean every funding level will sustain coverage.
Lapse and access risks
Loans and withdrawals reduce cash value and death benefit, can increase lapse risk, and may have tax consequences. If a policy lapses with an outstanding loan, taxable income may result.
Illustrations are not promises
Non-guaranteed illustrated values are hypothetical. Review both guaranteed and non-guaranteed elements in a current carrier- and state-approved illustration, and ask what assumptions can change.
A clear next step
Bring your questions. Leave the sensitive details out.
Start with a general inquiry about your goals and state. Applications and underwriting information belong in an insurer’s authorized system.