Like whole life, except that interest paid on the cash value is pegged to a specified financial measure (such as stock index or specified financial instrument) |
Level premiums |
Build-up influenced by interest credited on policy's cash value; Participating policies may have additional build-up |
Forced savings; Fixed premiums; Income tax advantages; Some protection against inflation |
Rates higher than Ordinary Life; Investment return usually marginal (but better in times of high interest rates) |
Conservative buyers wanting guarantees of Ordinary Life, but with some inflation protection |