Is Indexed Universal Life Insurance A Good Investment? 
First and foremost , the objective is of life insurance is to provide valuable death benefit protection . If you 're looking at taxable investments to help secure your retirement years , your life insurance professional can show you ways to use the tax-advantages and growth potential of cash value life insurance . A properly designed life insurance policy can provide : Death benefit protection No income limits - unlike with 401 -LRB- k -RRB- s , traditional IRAs , or Roth IRAs Tax-advantaged cash value growth potential Supplemental retirement cash flow through tax-advantaged loans and/or withdrawals of policy values Cash flow that will not increase your overall tax expense or cost of government programs like Social Security and Medicare The key to the cash value and income features is how cash values grow . The index feature provides the opportunity to have the policy value allocated between Indexed Accounts and a Fixed Account . The Indexed Accounts are eligible for Indexed Interest which is non-guaranteed interest based on fluctuation in a stock price index such as the S&P 500 that may be credited to the Indexed Accounts at the end of each segment year . The interest rate for all accounts will have a guarantee to never go below some minimum rate such as 1 % annually . This approach is a good idea and may be something to consider . A life insurance professional can help determine if it fits with your objectives . 