What Is Indexed Universal Life Insurance Policy? 
That is an excellent question ! An indexed UL policy is a type of permanent life insurance . This type of policy carries a higher amount of risk than a traditional whole life policy . In a traditional policy , your death benefit is guaranteed , and your premium payments are usually set , and unchanging . In the indexed policy , the death benefit is created by an interest rate that is tied to an outside index , usually the Dow , or the S&P 500 . As the market moves , so does the interest rate that your policy earns . The rates are usually capped on the high side , and may or may not have floors on the bottom end . This means that your policy may or may not increase in cash value , and your premiums may or may not have to increase to keep the policy active and in force . This type of policy has a lot of moving parts , and is , in my opinion , left for those with higher risk tolerances , good liquidity , and the understanding of , and time to follow , the markets . I rarely recommend this product . I hope that helps , thanks for asking ! 