I asked this in another post but it kind of got lost in a dispute so I thought I would try a new thread because I am really interested in hearing the opinions of others about IUL.
Other than the fact an IUL is a little more complicated to explain to the client, what is the downside when compared to a traditional UL? AGLA just came out with one and are promoting it heavily. I haven't written any (preferring their product that will guarantee to 121) but it seems to be a win - win for the client. If the cap or participating accounts are outperforming the declared interest accounts then they can use those to increase cash values. If not, they can seek the safety of a 3% guarantee in the DIA. I realize that interest rates, caps and cost of insurance are subject to the whims of the company but that is the case with all ULs.
Other than the fact an IUL is a little more complicated to explain to the client, what is the downside when compared to a traditional UL? AGLA just came out with one and are promoting it heavily. I haven't written any (preferring their product that will guarantee to 121) but it seems to be a win - win for the client. If the cap or participating accounts are outperforming the declared interest accounts then they can use those to increase cash values. If not, they can seek the safety of a 3% guarantee in the DIA. I realize that interest rates, caps and cost of insurance are subject to the whims of the company but that is the case with all ULs.