Market-linked growth is one of the defining features of an Indexed Universal Life (IUL) policy, allowing your cash value to grow based on the performance of a major stock market index, such as the S&P 500. Instead of being directly invested in the market, your policy is tied to the index’s movements, so you can benefit from positive market performance without risking your principal. When the market goes up, your account is credited interest up to a cap set by the insurance company, and when the market goes down, a floor—typically 0%—protects you from losses. This structure creates a balance between growth potential and protection, making it appealing for individuals who want exposure to market gains while maintaining a level of financial security.