UL is a form of permanent life insurance, which means it provides coverage for your entire lifetime as long as you pay the premiums.

IUL policies offer flexibility in premium payments. You can adjust the premium amount or even skip premium payments, provided there is enough cash value to cover the cost of insurance.

A portion of your premium payments is allocated to a cash value account, which can grow over time. The cash value has the potential to earn interest or returns based on the performance of one or more stock market indices.

The cash value in an IUL policy typically grows based on the performance of stock market indices, such as the S&P 500. However, the policy may include a cap or a participation rate that limits the amount of interest you can earn in a given year.

IUL policies often come with a floor, ensuring that your cash value won't decline if the underlying index performs poorly. This downside protection is a key selling point of IUL policies.

The cash value in an IUL policy can grow tax-deferred, meaning you won't pay taxes on the gains as long as the money remains in the policy. Additionally, if structured correctly, you can access the cash value tax-free through policy loans or withdrawals.

Like all life insurance policies, IUL provides a death benefit that is paid to your beneficiaries when you pass away. This benefit is typically income-tax-free.

IUL policies can have higher fees and charges than other forms of life insurance, so it's important to carefully review the policy terms and costs before purchasing.

Indexed Universal Life insurance policies can be complex, and their returns are subject to the performance of financial markets. Understanding the policy's terms and conditions is essential to making informed decisions.