Indexed Universal Life: Dangerous Truths About IUL Risks

The Money Advantage Podcast

https://www.youtube.com/watch?v=9FkwOp08REc Indexed Universal Life Insurance can seem attractive. At some point in your Infinite Banking research, you’ve probably even heard about using IULs instead of whole life insurance. Consequently, we get a lot of questions about whether IULs are better than whole life. Usually, this is because the illustrated values are better than for whole life, with lower premiums. And there’s the appearance that you can’t lose money because of “downside protection and upside potential." Comparatively, whole life can look expensive and pretty boring. However, IULs have risks that prevent it from being compatible with Infinite Banking. These risks are causing many people to be in danger of losing policies they’ve paid into their whole lives. We’ll expose the truth about IULs and show you the darker side of the inner workings of these life insurance policies. And we’re not the only ones raising red flags about Indexed Universal Life. Despite the popularity of these policies, some of IUL’s dirty laundry has been coming out of the closet. The product itself has a reputation stained by lawsuits and even a warning by the state of New York outlining the dangers of IULs. Table of contentsThe Truth About IUL RisksWhere Life Insurance Fits into the Cash Flow SystemWhat Is Indexed Universal Life Insurance?Crediting RateCaps and MinimumsMany Beliefs About Indexed Universal Life Insurance Are More Myth Than FactThe Truth About IUL RisksIUL Risk 1: Your Cash Value Account Can Go DownMinimum Crediting Rate Is NOT Net of FeesIUL Risk 2: Flexible Premiums Can Be Used Against YouAnnually Renewable Term Insurance Has an Annually Rising CostHigher Costs Slow the Buildup of Cash ValueIndexed Universal Life Premiums May Become Insufficient to Cover CostsPremiums, Cash Value, and Internal Growth Must Cover the Increasing Internal ChargesYou Might Have to Pay Additional Premium to Keep the Policy in ForceIUL Risk 3: You Can Lose MoneyIUL Risk 4: The Policy May Not Last Your Entire LifeBottom Line: Indexed Universal Life Policies Lack GuaranteesEnsuring Your Policy Will Work for Infinite BankingGuaranteed Death BenefitGuaranteed PremiumsPolicy EndowsGuaranteed Cash Value Dollar Amount, Not Guaranteed Interest RateStart Your Life Insurance Today The Truth About IUL Risks In today’s show, we’ll discuss the risks of IULs. Indexed Universal Life is a complex product with many moving parts. This conversation is not intended to be comprehensive or fully explain IULs. Instead, we’ll highlight the reasons why we don’t personally use them and almost never recommend them. In a follow-up episode, we’ll talk with Todd Langford, the creator of Truth Concepts, to further dissect the truth about IUL’s mathematical and statistical faults. Where Life Insurance Fits into the Cash Flow System Life insurance protection is a critical part of your financial life. However, it’s just one step in the bigger journey to time and money freedom. You need all the pieces in place to produce wealth systematically. That's why we have created the 3-step Business Owner's Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom. The first stage is the foundation. You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets. Life insurance is part of Stage 2, protecting the wealth you’ve built. Not only does it provide the peace of mind of protection, but it can also be used as your cash flow management system. That’s why it’s so important to make sure the policy you use can become a cornerstone of your wealth creation. What Is Indexed Universal Life Insurance?