Indexed Life Insurance- How does it work?

Indexed life insurance is a type of life insurance policy that offers the potential for cash value growth, based on the performance of a stock market index such as the S&P 500.

It allows policyholders to benefit from market growth while protecting them from losses due to market downturns. The cash value growth of the policy is linked to the performance of the index, but is subject to a minimum interest rate guarantee and may also be subject to participation and/or cap rates set by the insurer.

Indexed life insurance can provide a tax-advantaged way to supplement retirement income, and may also provide a death benefit to your beneficiaries upon your passing.