The Risky Truth about Indexed Universal Life Insurance

In this video, we're discussing Indexed Universal Life Insurance, or IULs, and exploring the risks associated with them. If you’re considering an IUL for privatized banking, you need to know what you’re up against because how IULs are marketed and what they really are can be vastly different.

IULs are made for 1 in 100 people, but they are sold to everyone.

Here are the risks of IULS.Commission and fees are insane and the amount of monthly premiums can be crazy high.

There's a rising cost of insurance (COI) every year, and this eats away at the premium you pay. The remaining amount goes towards the cash value of your policy, which grows based on an index like the S&P 500. If the index does well, you'll earn a high-interest rate, but if it performs poorly or drops, you won't go negative. If the COI is rising, the amount going towards the cash value lowers each year.
The problem with IUL policies is that there are no guarantees. The premiums are not guaranteed, and the insurance company can raise them.

If the cash value doesn't grow enough to cover the rising cost of insurance, you may have to pay additional premiums to keep the policy in force. This can have a huge effect in your later years when you're closer to needing the policy to pay out to your beneficiaries.

The cash value is not guaranteed. Although there is a guaranteed minimum crediting rate, if it's zero, your cash value won't grow. If it's 2%, but the internal costs are 2.5%, your net growth rate is negative, meaning you're losing money. If you choose indexes that are negative for like 3 years in a row, your cash value depletes rather quickly to cover the COI each year.

#indexeduniversallife #lifeinsurance #iuls

[StopBeingSoldMedia]

Thanks for watching! Don't forget to subscribe!

[jeffreycervantes-ibarra]

There isn't a rising cost of insurance in an IUL, its a fixed premium