Indexed Universal Life
Can I Realize Gains?
IUL often sees significant gains in cash value, especially when compared to universal life or whole life insurance.
Other Perks
IUL policies often carry riders, such as guaranteed premiums and provisions for long‐term care and critical illness, often making such policies more attractive.
Tax Advantages
Cash value accumulates tax‐deferred and loans against the policy are often tax free.
Can Gains Be Limited?
Cash value increases are limited by the insurer and if the index returns gains greater than the crediting rate cap, returns are calculated based on the cap.
What Is The Rate Of Return?
Returns can often be lower than policyholders are comfortable with and policyholders don't understand the costs that eliminate profits.
Fees And Costs
Fees are usually front loaded and built into complex calculations, making them hard to understand.
