There are several other features of indexed universal life insurance, according to the American Institute of Certified Public Accountants (AICPA), such as:

No fixed interest rate
Interest rate guarantee
Adjustable death benefit¹
Access to cash value²

No fixed interest rate

When you purchase indexed universal life insurance, funds in your cash value indexed account don't earn a fixed rate of interest, explains the National Association of Insurance Commissioners (NAIC). Instead, your rate of interest is based on a selected index. This differs from a universal life insurance policy, which earns interest similar to that of a money market account, says the Insurance Information Institute (III). According to the Securities and Exchange Commission (SEC), an index tracks the performance of a specific basket of investments, such as stocks or bonds. Your insurer should provide you with a list of indices to choose from, then calculate an interest rate based on the performance of that index, says the NAIC. The life insurance company then credits that interest to your cash value account. Some indices do have a guaranteed rate, regardless of how the index performs.

Interest rate guarantee

The NAIC also says that policies typically include an interest rate guarantee, so a minimum interest rate is paid even if the index produces lower returns. However, interest rates are usually also subject to a "cap" or upper limit.

Adjustable premium payments (within limits)¹

Your policy will likely specify a planned premium for you. However, if you have enough money in your cash value account, you may be able to use those funds to help pay your premiums.

Adjustable death benefit¹

Death benefits are typically flexible with an indexed universal life policy, and you can usually lower them at any time. However, increasing the death benefit may require you to pass a medical examination.

Access to cash value²

In case of emergency, you may be able to borrow from your indexed universal life insurance policy, although you will likely be charged interest for doing so. You may also be able to make withdrawals from your cash value account. However, doing so may permanently reduce your death benefit. If you don't maintain a large enough balance in your cash value account, withdrawals may also risk causing your policy to lapse.