Indexed Universal Life Insurance Is One Of The Most Misrepresented Financial Products Today

Unfortunately, a lot of people are going to get hurt. Make sure you're not one of them.

The 6 Major Problems With IUL To Be Aware Of

Annual Renewable Term

This is the horrible foundation that IUL is built on. This means that your Cost of Insurance gets astronomically expensive when you get older. Even though you can "manage" the Net Amount at Risk, the ever-increasing Cost of Insurance can create massive problems later on.

The Illustration

IUL illustrations are incredibly misleading. They show uninterrupted compound growth on a product that's based on stock market performance. When has the stock market EVER gone up every single year? PSA, it never has and never will!

The Income

Believe it or not, the "income" you start taking from an IUL in the form of policy loans becomes your greatest liability. If your loan balance is $500,000, with a 5% policy loan interest rate, and you have a "zero" year, $25,000 of interest gets taken from your Cash Value.

NAR Management

To avoid having an IUL lapse in the future due to poorer performance than illustrated (which is very likely), you MUST manage the Net Amount at Risk in the policy. If the NAR gets too high, your costs to keep the policy in force can far exceed any crediting you earn.

Policy Design

For an IUL to even have a chance of surviving long-term, it MUST be max-funded with the lowest amount of death benefit. Unfortunately, 98% of all IUL's are designed in a way that virtually guarantees that they will lapse in the future, leaving the policyholder with nothing.

IUL Is Pointless

If you are drawn to the promise of IUL to get upside potential and downside protection in the market, did you know that you can get that with a whole life insurance policy and completely avoid all of the things that can go wrong with an IUL? Well, you can.