What are IUL’s And what do they do?

As TikTok, Facebook Reels, and Instagram continue to surge in popularity, Indexed Universal Life (IUL) insurance policies have emerged as a hot topic in recent years. This trend invites some critical questions: What exactly are IULs? What benefits do they provide? And why are so many individuals turning to IULs as a preferred financial strategy?

Let's start with the basics. What is an IUL? An Indexed Universal Life Insurance Policy (IUL) is a type of life insurance that allows your policy's cash value to grow based on the performance of specific market indexes through subaccounts. The growth is subject to a cap; for example, if the index increases by 7%, your potential gain may be capped at 3%.

What are the benefits of IUL’s? IULs provide life insurance coverage, ensuring that beneficiaries receive a payout in the event of the policyholder's death. This provides peace of mind knowing that final expenses are covered along with other potential expenses.

Given all this information, what do you think is driving so many people to choose IULs?