Is Indexed Universal Life Insurance A Good Investment? 
I view indexed universal life insurance as more of a savings vehicle than an investment . Investments are subject to market risk and can lose money if the market -LRB- stock , real estate , bonds , etc. -RRB- declines . Indexed universal life offers protection from downside risk and upside potential for growth . This means that if your policy is indexed to the S & P , your money is not invested in the S & P , but the S & P is only used as a gauge of how much interest to credit to your policy . If the S & P increases 10 % for the year , then 10 % interest is credited to your policy . If the S & P goes down 20 % for the year , then you get a 0 % - 2 % return for the year -LRB- depending on your policy specifics -RRB- . Insurance charges are subtracted from your policy 's cash value , so even if you get a 0 % interest credit for the year , your cash value may decline slightly . However , depending on your age and health , the fees may be less in your life insurance policy than many other financial vehicles . The benefits of life insurance as a cash accumulation vehicles far outweigh other financial vehicles . In summary , if you are looking for a `` safe '' place to grow your money with no market risk , protection from taxes , and accessibility to your money , Indexed Universal Life Insurance is a great option to learn about . 