Both may use index-linked crediting within an insurance policy, but they are generally designed with different priorities. IUL plans tend to place greater emphasis on permanent life coverage and legacy planning, while Indexed Wealth or Income plans tend to place greater emphasis on wealth accumulation, future income and liquidity. The actual features vary significantly between insurers and plans.

No. You do not directly own units of the underlying index. Instead, the insurer uses the performance of a selected index to determine the interest credited to the relevant index account, according to the plan's specific formula, floor, cap or participation structure.

A 0% floor generally means that a negative index return will not result in negative interest being credited to that particular index account or segment. It does not mean your entire policy value cannot decrease. Policy charges, withdrawals and other deductions may still reduce the overall policy value.

No. Index-linked crediting is generally non-guaranteed and depends on the performance of the selected index and the insurer's applicable crediting terms. Caps, participation rates and other parameters may also change over time. Some plans may separately offer guaranteed rates within a fixed account, but these should not be confused with guaranteed overall policy returns.

Neither is automatically better. If your main objective is substantial permanent life coverage and legacy planning, an IUL structure may be more relevant. If your priority is wealth accumulation or generating future income, an Indexed Wealth or Income plan may be more suitable. The right structure depends on your objectives, budget, time horizon and need for insurance coverage.

Many plans provide withdrawal, policy loan or income features, but the rules differ. Withdrawals can reduce the policy value and potentially affect future benefits or policy sustainability. Some plans also impose surrender charges or restrictions during the earlier policy years.

It depends on the product. Legacy-focused IUL plans with larger death benefits may require medical underwriting, while some savings- or income-oriented indexed plans may offer simplified or guaranteed acceptance. This is one reason the plans should not be compared solely on their index features.

Not necessarily. Traditional IUL solutions have often been designed for affluent and high-net-worth clients because of their larger coverage and premium requirements, but newer indexed wealth and income plans have expanded the range of entry points and planning objectives available. For example, newer products include both SGD-denominated wealth solutions and lower-entry indexed structures.

Look at the entire policy structure: index options, floor, cap or participation mechanism, policy charges, premium commitment, fixed-account terms, withdrawal flexibility, surrender terms, currency exposure, insurance benefits and long-term policy sustainability.

A high headline cap alone does not tell you which plan is more suitable.

We compare IUL and Indexed Wealth options across different insurers based on your objectives, age, intended premium, protection needs and preferred planning horizon. We look beyond the headline index figures to explain the product structure, charges, flexibility and key trade-offs so you can decide which approach — if any — fits you.

No obligation. If an indexed plan is not appropriate for your needs, we'll tell you.