Variable life insurance has the return on its cash
value component tied to underlying investments such as mutual funds (although the funds are not directly invested in these vehicles).
An indexed universal life insurance policy will have the return on its cash
value component tied into an underlying market index, such as the S&P 500 or the Dow Jones Industrial Average.
Not exact matches
The idea behind them is that their cash -
value component accumulates interest at a rate
tied to market indexes.
However, the cash
value component is
tied to an underlying market performance.
Tieing into what we said previously, non-GUL policies can increase in price each year to accommodate the cash
value component.