Coverage options
A guide to indexed universal life insurance
Learn the vocabulary of indexed universal life insurance, including crediting methods, caps, and policy charges.
Indexed universal life insurance is a form of universal life insurance. Its interest-crediting approach may be linked to an external index, but it is an insurance policy—not a direct investment in an index.
Crediting methods matter
Policies can use caps, participation rates, spreads, floors, and other crediting methods. These methods can materially affect results and are described in the policy and illustration.
Look beyond a single illustration
Illustrated values may change when assumptions change. Review guaranteed and non-guaranteed values, ongoing charges, and the effect of loans or withdrawals before deciding.
Understand the limitations
Cash value, death benefit, and policy longevity can be affected by costs, credits, funding, and distributions. This type of policy should be discussed in the context of its insurance purpose and policy limitations.