Final answer:
Indexed Universal Life policies have features related to cash value, premium flexibility, and death benefit adjustment.
Step-by-step explanation:
The features of the Indexed Universal Life policy include:
- Policy's cash value is dependent on the performance of the equity index. Unlike other types of life insurance, the cash value of an Indexed Universal Life policy is tied to the performance of a specific equity index, such as the S&P 500. This means that the policy's cash value can go up or down based on the performance of the index.
- Sale of this product requires a securities license. Indexed Universal Life policies are considered securities products due to their investment component. Selling this product typically requires obtaining a securities license.
- Flexible premium. Indexed Universal Life policies allow the policyholder to adjust the premium payments according to their financial situation. This flexibility can be helpful if the policyholder's income changes over time.
- Adjustable death benefit. The policyholder has the option to adjust the death benefit amount during the policy term. This can be useful if the policyholder's needs or financial situation changes.
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