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Zero-- it shows up every day, usually as the villain, not the hero. But an indexed universal life insurance policy allows zero to be your hero. First, it provides a death benefit to your family if you die. It also has a cash value component that credits interest to the policy based in part on changes in a major market index, like the Samp;P 500. Why credit interest based on a stock market index? Two words-- potential and protection. Indexed universal life insurance offers protection from index declines with a feature called the floor. The floor allows zero to be your hero. So how does it work? Well, lets keep it simple. You pay a premium to the insurance company. Your premiums are put into an account called the basic strategy. A portion of those premiums are used to cover 12 months of policy expenses, so theyll stay in there. Premium dollars paid in excess of the 12 months of policy expenses go into the interest crediting strategies of your choice. Insurance companies can have diff