Index Universal Life insurance is a type of permanent life insurance, which means you cannot outlive the policy if the policy is funded as agreed.
This product has a cash value component in addition to a death benefit and living benefits.
The money in your cash value account will earn interest based on a stock market index chosen by your insurer, such as the S&P 500, the Nasdaq Composite or Credit Suisse.
It also accrues tax-free compounded interest so the cash value can be tapped into during your lifetime for many useful purposes including supplementing your retirement income.
In addition there are a variety of living benefits including one that pays up to 80% of the death benefit benefit if you are stricken with certain chronic, critical or terminal illnesses.
As it is permanent, Index Universal Life Insurance can be used for funeral and other final expenses, and leaving a legacy behind for family or charity.