What Is Indexed Universal Life Insurance Policy? 
The cash value of any whole life policy earns interest . The amount of interest is contractual in a whole life policy . That interest rate reflects the companys anticipated earnings . An indexed universal life looks to an established external index to determine the interest rate . This could be the Dow Jones Average , Standard and Poors or several others . These indexes then provide the insurance company with the interest that they are to apply to the policy . The interest rate isnt guaranteed , although some policies will not charge negative interest if the index dips below zero . 