Term life insurance is a type of policy where you pay a regular premium to an insurance company, and in return, they agree to pay a lump sum to your chosen beneficiaries if you pass away during a set period, or term. The term could be 10, 20, or 30 years, and if you're still alive when the term ends, the insurance doesn't pay out anything.

The purpose of term life insurance is to provide financial security for people who depend on you, like a spouse or children. If something were to happen to you during the term, the payout could help cover living expenses, debts, or other financial needs. The cost of term life insurance is usually cheaper when you're young and healthy, making it an effective way to ensure financial safety for your dependents.

Whole life insurance, as the name suggests, is designed to provide coverage for your entire lifetime. Unlike term life insurance, which covers you for a specific period, whole life insurance doesn't expire as long as you're paying your premiums. The insurance company will pay a pre-decided amount to your chosen beneficiaries upon your death, regardless of when it occurs.

In addition to the death benefit, whole life insurance also includes a cash value component, which is a tax-deferred savings account that gradually grows over time. This means a part of your premium contributes to a cash value that you can borrow against or even withdraw from while you're still alive, under certain conditions. However, these policies typically come with higher premiums than term life insurance because they provide lifelong coverage and accumulate cash value.

Banking Whole Life Insurance utilizes the Infinite Banking Concept (IBC). IBC is a strategy where you use a dividend-paying whole life insurance policy to become your own "bank." The idea is that by over-funding your insurance policy, you can build up a significant cash value over time, which can be borrowed against tax-free. This means you can lend money to yourself, pay yourself back (with interest), and in the process, grow your policy's cash value.

Under the IBC, instead of borrowing from traditional banks or credit cards for major purchases, emergencies, or investments, you can borrow from your life insurance policy. When you pay back these loans, you essentially pay interest to yourself, not to a bank, increasing your wealth over time. The death benefit of your policy remains intact too, providing financial security for your beneficiaries. But remember, any outstanding loans are subtracted from the death benefit if you pass away.

Indexed Universal Life Insurance (IUL) is a type of permanent life insurance that combines a death benefit with a cash value component. However, unlike whole life insurance, the cash value growth in an IUL is tied to a stock market index, such as the S&P 500. This means the cash value has the potential to grow more when the market performs well, but it won't lose value if the market performs poorly, thanks to a feature known as a floor, which sets a minimum interest rate.

This policy also offers flexibility. You can adjust your premium payments and death benefit as your financial needs change over time. However, the costs, potential for gains, and risks involved tend to be more complex than with a basic term or whole life policy. Although an IUL can offer significant potential growth and tax advantages, it's important to fully understand the complexities and risks associated with market-linked gains before considering this type of policy.