What Is Indexed Universal Life Insurance, and Is It Available in Jamaica?

Question from Kane:

"What is an indexed universal life policy and do either insurance company offer this indexed universal life policy here in Jamaica?"

Answer by Wellesley:

Kane, great question. It's a complex-sounding product, but let me break it down for you in simple terms. An indexed universal life policy, often called an IUL—is a type of permanent life insurance. It not only provides a death benefit but also builds cash value over time, and that cash value grows based on the performance of a specific stock market index like the S&P 500.

What makes it different from regular life insurance is that while your money is linked to the market’s performance, you’re usually protected from losses. So, if the market drops, your value doesn’t go down - you just don’t gain for that period. But when the market goes up, your policy grows, usually up to a capped rate.

Now, to your second question -yes, you should be able to find this kind of policy in Jamaica. I think Sagicor offers something called the WealthCare Indexed Single Premium Universal Life. It’s designed for long-term financial security and estate planning, especially if you want to leave something behind for family.

Guardian Life also offers a universal life insurance plan that’s investment-linked - I had something similar to that. While it might not follow a strict index like Sagicor’s, it still allows for investment growth depending on your selected options and carries some flexibility.

If you're interested, I’d recommend reaching out to one of their agents. Ask them to explain how the policy’s interest crediting works, what kind of index is used, whether there’s a cap or floor, and if there are fees involved. And of course, make sure it matches your financial goals before you commit.

Hope this gives you a clear picture, Kane. I’m happy to help you follow up with someone locally too if you'd like a direct referral.

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📅 Last updated: June 11, 2025

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