IUL can look powerful on an illustration, but what can actually go wrong? Here are the biggest risks of using indexed universal life for retirement and the stress tests we believe the strategy should survive before you rely on the projected income.
What happens to an IUL if you live to age 95? See how decades of retirement income, policy loans, charges and indexed crediting can affect the policy, and what to stress-test before retirement.
What happens when IUL policy loans stay outstanding for 20 or 30 years? Learn how cash value, loan costs, indexed crediting, policy charges, retirement distributions, and lapse risk can interact over decades.
When does an IUL policy loan become too large compared with cash value? Learn what to monitor as policy indebtedness grows and why the loan-to-value relationship can matter more than the loan balance alone.
Can high IUL fees destroy a retirement strategy? See how policy charges can interact with weak crediting, growing loans, retirement withdrawals, and longevity to put an IUL under pressure.
What happens if you stop paying into an IUL earlier than planned? See how reduced funding can affect cash value, policy charges, JUMPs, policy loans and projected retirement income.