Indexed universal life products offer interest-crediting rates linked to a stock market index, with the safety of a minimum guaranteed interest rate
. Policy owners can benefit from the growth of the Standard & Poor's 500 Composite Stock Price Index, not to exceed an index cap rate declared by the insurance company.
Unlike variable annuities, which offer a similar feature, annuities with an equity index account also offer a minimum guaranteed interest rate
, as is provided as a part of any fixed annuity contract," Seward said.
"These products are about principal protection, just as with traditional fixed annuities--that is, safety, security, tax deferral and minimum guaranteed interest rates