What Is A Index Universal Life Insurance Policy? 
Indexed Universal Life is a policy that is tied to a specific stock index such as the S&P 500 or the NASDAC or some other stock index . They have a minimum guaranteed interest that is paid into the cash value once the initial fees and cost of insurance has been covered , which typically takes several years . Then it is possible that the interest gained will be more than than the guaranteed minimum depending on the performance of the Index . As the low end is capped and will never be less than the guarantee , the top end is also capped and will never exceed that amount - typically 11 or 12 % . Sounds pretty attractive , but remember the cost of insurance continues to rise and will be taken from the gains . 