Indexed Universal Life (IUL) insurance is a type of permanent life insurance. It remains in force as long as you keep your premium payments up to date or until the maturity date specified in the policy. Many IULs are designed to mature when the insured reaches age 121, which ensures the policy remains permanent.

IUL includes a cash value component, where growth is linked to a market index, such as the S&P 500. However, the insurance company actually invests the funds in assets like bonds and mortgages, which helps manage risk while providing potential growth.

One key advantage of universal life insurance, including IUL, is the flexibility to adjust your premium payments within certain limits. The main difference between indexed universal life insurance and other universal life policies is how the cash value accumulates, with IUL offering the potential for higher growth tied to an index.