There are many different universal life insurance plans that are available to the general public that allow you to choose where you invested money goes with still providing a great death benefit. Perhaps the most flexible in this regard is indexed universal life insurance. With this life insurance type, policyholders are able to contribute cash value amounts to a fixed account or an equity index account that includes well-known indexes like the Nasdaq 100 or S&P 500. While these policies tend to be much more volatile than traditional universal life insurance, no money is actually invested in equity positions.

Any time a premium is paid, a portion of that payment covers the annual renewable term insurance and any associated fees. The remaining balance is then added to the policy as a cash value that is credited with interest based on any equity index increases although the cash value is never actually invested directly into the stock market. The selected indexes value will be compared at the beginning and end of the month to determine the interest that is added to the cash value. Any gains will be credited back to the policy each month or annually depending on your policy.