What happens when your IUL credits 0% while your policy loan costs 5%? See why the 0% floor does not eliminate loan costs, what the 5-point unfavorable relationship really means, and how to stress-test it.
Can IUL policy-loan arbitrage turn negative? Learn what happens when indexed crediting falls below the loan cost, why a 0% floor does not prevent negative arbitrage, and how to stress-test the JUMP Strategy.
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.
What happens if you borrow too much from an IUL? Learn how growing policy loans can affect cash value, retirement income, death benefits, taxes, and lapse risk.
Can an IUL lapse after you retire? Yes. Learn how large policy loans, loan interest, charges, lower crediting, and aggressive retirement income can put an IUL at risk.