06/01/2026
Saw this on LinkedIn from a Financial Advisor, who works for another firm, confirming "buying term and investing the difference" philosophy
"Your IUL policy was always designed to increase from $72/mo to $347/mo in premiums.
Indexed Universal Life Insurance policies are one of the worst offenders for not standing the test of time.
Why?
IUL's are expensive with hidden costs you don't know about, leading investment performance to be cut at the knees.
Participation and cap rates mean you are missing out on the best years in the market. If you have a 12% cap rate on your S&P 500 fund, you have left money on the table 48 years over the course of the S&P's history.
Your money wasn't actually invested in the stock market and you weren't receiving a dividend. This has major consequences in a fund like the S&P 500, which has had 32% of it's total return since 1928 from the dividend it pays.
Are there legitimate use cases for an IUL? Yes, but they are few and far between. Unless you have millions of dollars and are looking for ways to have tax sheltered investments, I believe you are much better off buying term and investing the difference. Which is cliche, but it is only one because it works."
If you haven't had someone review your IUL in years, your policy could be in danger of lapsing. Schedule your free consultation here: https://calendly.com/brianawatson/meeting-interview and I'll work with you to review your in-force illustration to determine how much longer you have until the you policy could lapse.
This is an Initial Meeting or Interview
