What is indexed universal life?
Indexed universal life is a form of permanent life insurance. Like other permanent policies, it's designed to last your whole life and includes a cash value component. What makes it "indexed" is that the cash value growth is tied to the performance of a market index (such as a broad stock index) rather than a fixed rate.
IUL policies typically include a cap on how much your cash value can grow in a strong year, and a floor that limits losses in a down year. The trade-off between that cap and floor varies by policy.