Updated Thursday, October 30, 2014 as of 8:18 AM ET

Indexed Universal Life: Insurance or Investment Vehicle?

With the five-year-old bull market starting to show its age, many advisors are looking for ways to safeguard their clients’ portfolios.

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Comments (3)
Beware! IUL generally allows the carrier to transfer the risk to the policyowner and the liability to the agent. Why do the carriers pay substantially more compensation on this product to distributors than regular UL or traditional WL? Why are the range of returns substantially smaller on Indexed Annuities versus IUL? Yes it is easy to sell to the consumer but best pay your liability coverage and better to be securities licensed. Better yet - use another product.
Posted by Stephen R | Tuesday, August 26 2014 at 2:20PM ET
This article is nothing more than an advertisement for Index annuities and insurance. Yes, Advisors are paid extremely well. But buyers are stuck with it for a very long time. The investment is not guaranteed 100% of the purchase price. The upside is capped, so the buyer do not get all the appreciation of returns. There is a detailed warning letter.
Posted by ACHYUTA N | Tuesday, August 26 2014 at 3:09PM ET
Well written piece covering the "basics" of using an IUL as a alternative to variable products. Some interesting FACTS on persons with a strong opinion against using an IUL. #1. They are totally ignorant of the Tax Laws which govern Life Insurance, nor can they explain TEFRA, DEFRA let alone TAMRA to their clients. #2. They are closed minded and do not understand BOLI, not to mention COLI. #3. Everyone agrees future taxation will be HIGHER, but those against IUL's feel it's proper to leave clients assets in volatile vehicle such as Mutual Funds, etc.. and finally #4. They do not believe a client's portfolio should be "Diversified"
Posted by Michael A | Wednesday, August 27 2014 at 6:44PM ET
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