Indexed universal life (IUL) insurance is a type of life insurance that allows policyholders to accumulate cash value linked to the performance of a stock market index while also providing a death benefit.
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definition
Product definition and basic mechanics of IUL policies.
Returns on indexed universal life (IUL) insurance policies are often subject to caps, are reduced by fees, and can depend on complex crediting formulas, which can make their performance riskier or less predictable than they may appear.
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conceptual
Typical design features and risk drivers that affect IUL policy performance.
Some life-insurance products, including certain indexed universal life (IUL) policies, are marketed as tax-advantaged retirement planning vehicles, and such marketing can cause consumers to underestimate the products' complexity and risks.
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consumer_warning
Generalizable risk related to how complex insurance products are presented to consumers.