What Is A Index Universal Life Insurance Policy? 
A universal life policy is a form of permanent life insurance . That means that properly funded it will not expire before the insured dies . It is also a flexible payment plan , which means that the owner can determine the amount and frequency of deposits into the contract . The funding for an index universal life is unique . The interest credited to the cash value of the policy -LRB- the thing that makes it last -RRB- is set each year by the company based upon one of the leading stock market indexes . The companies often guarantee that the rate of interest will not go below zero , and may realize a general rise in interest based upon the associated index . 