What is Indexed Universal Life Insurance?A type of permanent life insurance known as Indexed Universal Life (IUL) offers both a death benefit and a cash value component that increases in response to the performance of an index of the stock market, such as the S&P 500. It also has flexible premium options, tax benefits, the potential for higher growth, and protection from market downturns; however, it also has participation rates, returns caps, and fees that may limit growth.
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