Unlike term life policies, indexed universal life never expires. It’s linked to a market index and can provide a tidy sum to provide for final expenses or estate needs over time. Is this the right policy to consider for your needs? Here is a look at the pros and cons of indexed universal life insurance. The Pros of Indexed Universal Life The pros and cons of indexed universal life insurance (IUL) can be difficult to make sense of, especially if you are not familiar with how life insurance works. While IUL is one of the hottest products on the market, it’s also one of the most volatile. There are very few people whom we would advise to buy an indexed universal life policy. Index Universal Life Pros and Cons With indexed universal life, the insurer doesn’t invest your premium dollars into the general investment account. Instead, it uses a very precise mix of bond investments and index call options to pay interest based on the upward movement of a stock market index.