IUL is a type of life insurance policy that provides a death benefit to your beneficiaries just like traditional life insurance. However, it also has the potential to accumulate cash value over time, similar to a savings account, with the added benefit of being tax deferred.

The ways IULs work is that a portion of your premium payments goes towards the cost of insurance coverage and the rest is invested in a variety of index funds such as the S&P 500. The cash value of your policy is tied to the performance of these index funds, and may increase or decrease depending on the market conditions. However, the cash value is protected from market downturns by a guaranteed minimum interest rate.

One of the benefits of IUL’s is that it offers flexibility in terms of premium payments and death benefits. You can choose to increase or decrease your premium payments and you can also adjust the amount of your death benefit based on your changing needs.

In summary an IUL policy is like a savings account and a life insurance policy rolled into one. It provides a way to accumulate savings while ensuring that your loved ones are financially protected in the event of your death.