Indexed Universal Life (IUL) insurance combines life coverage with cash value growth linked to a stock market index, offering upside gains capped around 8-12% and downside protection at 0%. It uses conservative investments and options strategies to provide market participation without direct risk. While appealing for tax-deferred growth and retirement strategies, IULs have complex fees, costs, and performance variability, making them better suited for affluent individuals with sophisticated planning needs than average families.