What's the difference between IUL and term life insurance?
Answered by 5 licensed agents
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
Indexed Universal Life is a Permanent policy and can be set up many different ways. These policies are used for anything from pure death benefit to funding retirement. Find a qualified Life insurance broker who can find out what your requirements are and guide you to the right policy for your situation.
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Answered by Dean Chiapetto on August 27, 2026
Broker Licensed in VA, MD, NC, TN & WV
Answered by Melanie Blackston on August 26, 2026
Broker Licensed in SC, GA & NC
Another type of permanent life insurance is WL/Whole life.
Permanent life insurance premiums normally stay the same. They do not increase.
Term life insurance last for a specific period of time. For example: 10 years to 30 years, depending on your age. When the term expires, you no longer have coverage, the policy expires or ends. Term life does not build cash value.
Some term policies are convertible. Which means you can convert the term to a permanent policy during a certain timeframe.
Be careful as some term policies may increase & become unaffordable.
ART- annual renewable term, increases each year. Some term plans may increase every 5 years. Just be sure to purchase a level term premium where the premium will not increase.
So remember, there only 2 types of life insurance. Term & Permanent.
Permanent plans can be WL, UL, or IUL
Answered by Sandra Bailey on September 3, 2026
Broker Licensed in TN
IUL (Indexed Universal Life) is permanent life insurance that also builds cash value, with interest-crediting potential linked to a market index (without directly investing in the market). It costs more but can provide lifelong protection and potential access to accumulated cash value.
Neither is inherently better—the right choice depends on client needs, budget, and long-term goals.
Answered by Andy Kelly on August 27, 2026
Broker Licensed in WA & OR
Tags: Term Life Universal Life
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