What's the difference between IUL and term life insurance?
Answered by 1 licensed agent
An indexed universal life policy is a permanent policy. A term life policy is coverage that lasts for a 'term', which is a set amount of time usually ranging from 10-30 years (not all carriers have terms that long but that's a general guideline).
IULs can earn cash value and a lot of folks do get a policy for children, for instance, so the value can grow over a lifetime. IULs are tied to index performance and will experience gains, and many have a 0% floor to protect policyholders from loss.
Term life is for a period of years and if renewed the policyholder will pay more for the next term, though some policies can be converted and others do offer a return-of-premium.
IULs can earn cash value and a lot of folks do get a policy for children, for instance, so the value can grow over a lifetime. IULs are tied to index performance and will experience gains, and many have a 0% floor to protect policyholders from loss.
Term life is for a period of years and if renewed the policyholder will pay more for the next term, though some policies can be converted and others do offer a return-of-premium.
Answered by Jim Mentink on August 20, 2026
Agent Licensed in ME, FL, IL & 8 other states
Tags: Term Life Universal Life
Agents: Share Your Expertise
Have insights or experiences related to this topic? Help others by sharing your knowledge and answering this question.
Seniors: Ask a Question of Your Own
Questions are generally answered within 1 to 3 business days. Receive valuable perspectives from multiple licensed agents and brokers.
Ask a Question