Upside potential with protection from market risk

Indexed universal life insurance functions like other universal life insurance policies by providing a death benefit and the potential for cash accumulation. It can protect loved ones, supplement retirement income and help leave money to children and grandchildren. The difference is in how the interest is calculated and when it is credited to your policy.

Indexed universal life policies credit interest based in part on the upward movement of a major stock market index, subject to certain limitations. These limitations may include cap rates, participation rates and strategy expense charges. So when the market index does well, so do you. You also get:

  • The benefits of tax-deferral
  • A guaranteed minimum interest rate
  • A fixed rate crediting option

Indexed universal life can provide the potential for greater interest crediting over the life of the policy. Indexed universal life also provides you with protection from negative market returns since zero is the lowest amount of interest than can be credited to an indexed universal life. While a stock market index is used to determine how much interest may be credited to your indexed universal life policy, your premiums and cash values are never invested directly in the stock market. Therefore, if the index goes down, the resulting interest credit to your policy would not be less than zero.

Potential benefits of Indexed universal life insurance:
  • Greater growth potential over the life of the policy than traditional universal life insurance
  • Interest crediting, based in part on the positive movement of a stock market index, subject to the limitations previously described
  • Protection from negative market returns
  • Flexible coverage throughout your life


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