Annuity glossary

Indexed Universal Life (IUL)

Permanent life insurance with flexible premiums whose cash value earns interest linked to a market index, subject to caps, participation rates, and a floor that blocks index losses. It combines a death benefit with tax-advantaged cash accumulation, but internal policy charges and insurer-controlled caps make real performance heavily dependent on design and funding. Policy documents explain the timing, charges, limits, and conditions that apply to the owner.

Any guarantee is backed by the claims-paying ability of the issuing insurer.