Which characteristic is associated with indexed universal life insurance?

Indexed universal life insurance is specifically designed to combine the benefits of traditional universal life with the potential for higher growth linked to a stock market index. This type of policy offers a cash value component that is credited with interest based on the performance of a specified equity index, such as the S&P 500.

The characteristic of having an equity index account means that policyholders can benefit from market gains without directly investing in the stock market. Instead of providing a fixed interest rate like whole life policies, indexed universal life insurance can yield higher returns when the index performs well, while also offering some level of protection by typically including a floor below which the cash value will not fall.

Additionally, indexed universal life products may have features such as flexible premiums and death benefits, but the defining characteristic is indeed the equity index account that ties the policy's growth to market performance, distinguishable from other forms of life insurance that do not offer this linking to equity indices.