An Indexed Universal Life (IUL) policy blends life insurance protection with investment-like growth potential. It links cash value growth to a market index, offering upside when markets rise but protection when they fall, thanks to built-in guarantees. While IULs can outperform traditional fixed policies, they come with caps that limit returns and fees that can eat into gains. Because of their flexible yet complex nature, they’re best suited for long-term planners who understand how market-linked insurance products work and want a balance between growth and safety.