Episode 235: Does the IUL REALLY Work?

The internet is full of naysayers that are convinced the Indexed Universal Life Insurance Policy (IUL) is a ticking time bomb, but the question is “what does the evidence show?”. Over the last fifteen years we’ve seen catastrophic market declines and near-zero interest rates for a protracted period of time. This has created the perfect conditions to measure the effectiveness of the IUL. The stock market is one of two things that drives the return of the IUL, the second and more important factor is interest rates. You should expect target rates of return between 6% and 8% within your IUL, and the last 15 years have been a great laboratory to measure the effectiveness of accomplishing that goal. The first example is a company that dates back to 2006, and despite the ups and downs of the market, the IULs have managed to keep pace with that projection. The second example uses a set of historical returns back to 2006 as well, and averages them out to show a return of just over 7%. The third...