One of the key benefits of IUL life insurance is its flexibility. Policyholders can adjust their premium payments, death benefit amounts, and investment options within certain limits. This means that policyholders can tailor the policy to meet their changing needs and budget over time. Additionally, IUL policies offer a fixed interest rate, which is typically a lower rate than traditional universal life policies, but also offer the opportunity to earn more if the stock market index performs well.

IUL life insurance also has the potential for long-term tax advantages. The cash value of the policy grows tax-deferred, meaning that policyholders do not have to pay taxes on the interest earned until the funds are withdrawn. And, the death benefit is usually paid out tax-free to the beneficiaries.

It’s important to note that IUL is a complex product that requires a good understanding of how the stock market works and how the policy works. Before considering IUL, it’s highly recommended to consult with a financial advisor and make sure you fully understand the product and its potential risks and benefits.

In summary, IUL life insurance is a type of permanent life insurance that offers flexible premiums, cash value accumulation, and the potential for long-term tax advantages. Policyholders can adjust their premiums and death benefit amounts, and also participate in the growth of stock market. However, IUL is generally more expensive than term life insurance and traditional universal life insurance, and policies can lapse if premiums are not paid on time. Additionally, market fluctuations could impact the cash value and death benefit of the policy. It’s important to consult a financial advisor before considering this type of policy.