Yes, an IUL policy can accumulate cash over time. The best IUL for cash accumulation will vary by preference, but funds are generally invested in an index fund that gradually grows over time. While a year's worth of growth will not result in life-changing wealth, decades of cash accumulation can make for a comfortable nest egg for yourself.Yes, an IUL policy can accumulate cash over time. The best IUL for cash accumulation will vary by preference, but funds are generally invested in an index fund that gradually grows over time. While a year's worth of growth will not result in life-changing wealth, decades of cash accumulation can make for a comfortable nest egg for yourself.