<prompt> Human: Hi, last night I met with a financial adviser and he was explaining to me the benefits of a Indexed Universal Life policy. It seems to fit all of my needs by Being fairly liquid after the first year Surr charges which decrease each year and then stop after 15 years. Its after tax so the growth isnt taxed Finally, since it is indexed to the SP 500 it offers all of the gains within a reasonable cap and doesnt participate in the losses. I feel like its a great option for me to invest in for retirement but I want to make sure to do my due diligence. Can anyone explain to me what the catch is? What risk am I taking on? What do I need to be aware of?  <response>: See the FAQ entry on Life Insurance IUL is a permanent life insurance policy for this discussions sake. 