Indexed Universal Life (IUL) product works for both protection and build a cash value in the policy. A portion of the policyholder’s premium payments are directed toward annual renewable term insurance with the remainder added to the cash value of the policy after fees are deducted. On a monthly/annual basis, the cash value is credited with interest based on increases in an equity index. These policies leverage call options to gain upside exposure to equity indexes without the risk of losses.
Term life insurance can help you bridge that gap for decades at a relatively low cost. If you die while the policy is in force, you’ll leave behind a lump sum of cash for whomever you choose.