What differentiates an Indexed UL policy from other types of permanent life insurance used for
cash accumulation is that the
growth of the policy's
cash value is based
on the performance of an equity index (usually the S&P 500), excluding dividends, collared by a cap and a floor — rather than based
on a flat crediting rate that is established by the insurance carrier and adjusted from time to time (a product referred to as «current assumption universal life»), based
on a flat dividend rate that is established by the insurance carrier and adjusted from time to time (a product referred to as «whole life»), or based
on the actual investment returns of specific equity investments (a product referred to as «variable universal life»).