What is the policy indexed to, the stock market? I had an equity-indexed UL policy pitched to me when I was looking for term insurance and it seems like a good deal UNLESS you work through the numbers yourself. An agent will likely never do this for you since it will likely be obvious how bad of a deal it is for you. I believe the part of the policy that draws people in is the "don't lose money" aspect of the linked account. The cost for that safety is too high in my opinion.
For example, in the product pitched to me, the indexed portion of the UL account would give me the following returns:
min(0%, max(6%, 1/2*S&P 500 Returns))
If the market returned -10%, you lost 0%.
If the market returned 8%, you made 4%.
If the market returned 20%, you made 6%.
In their illustration, they applied the above formula to each 12-month rolling return over the past 30 years (so 30 x 12 returns). They took the average of these returns (3.77%) and used this number to show how much my account would grow.
However, if I took the average of each 12-month rolling return over the past 30 years and didn't apply their min/max formula, the return was somewhere around 9.5%! So basically they earned 9.5%, gave you 3.5%, and pocketed the rest. There were some years where you lost a good chunk of your money, but there were many years where you only made 6% but the market returned 20% or 25%.
Great gig if you can get it.
Outside of the "is life insurance necessary at 69" or "should get term vs ul" discussions, my feeling is that you should be skeptical of ANY index-linked product.