Indexed universal life insurance is a lot like universal life, however an indexed universal life insurance policy gives the policy holder the opportunity to allocate cash value amounts to either a fixed account or an equity index account. Indexed policies offer a variety of popular indexes to choose from, such as the S&P 500 and the Nasdaq 100. When historical interest rates are taken into account, returns of 5% to 6% happen. A person should read their entire illustration to see if this product fits their circumstances.