difference between equity indexed and whole life insurance
What is 'Equity-Indexed Universal Life Insurance'. A permanent life insurance policy that allows policyholders to tie accumulation values to a stock market index. Indexed universal life insurance policies typically contain a minimum guaranteed fixed interest rate component along with the indexed account option.
In a whole life policy, as long as every premium payment is made, the death benefit is guaranteed to the maturity date in the policy, usually age 95, or to age 121. A UL policy lapses when the cash valueis no longer sufficient to cover the insurance and policy administrative expense.