Now that more and more VUL are staring to offer index accounts similar to IUL but with SIGNIFCANTLY les policy charges, its starting to look very nice on the accumulation side as well.
My guess is he is talking IUL because having to have the COI & fees pulled from the index accounts will mean the amount in fees for 11of the months will be pulled before the index segment ends & will get credited with 0% for being taken out prematurely to cover fees. The fixed account credits for the days on deposit & doesn't require waiting to end of index segment. I don't believe VUL functions that way
Idk. The sentence ended with saying the "investment portfolio free-flows" that way. Then contrasted it with IUL.
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That can be a downside with annual premiums on IUL. However, it could be avoided (after the first year) by using a DCA account. (assuming its an IUL that uses monthly segments for crediting). Then you have a new segment maturing every month.
