Understanding IUL Mechanics

Human nature can undo awesome illustrations & spread sheets very quickly. This is why I absolutely cringe at the statements that IUL is just a better tax strategy than a 401k or Roth.......no, those are optional deposit plans & IUL/WL can & will have severe consequences if the planned contributions are not made or the plan is cashed in early.

I guess I just tend to not trust humans to stick to their plans even when sometimes they were the ones that read/saw something & wanted to build that kind of plan

PS-- would love to know if this was designed as max funded. Seems to not be very good surrender value if it was being maxed funded. $505k in premiums, $248k in interest gains means almost $500k in policy fees & surrender charges if they got back only $202k at surrender. Math isnt adding up for me, but maybe I am not following. (I get that the client is mistakenly thinking the carrier made $248k in investment gains they didnt ultimately give the clients even though we all know carriers dont earn investment gains in an IUL)
Last edited:
  • Like
Reactions: DHK