IUL Yes or No?

[mikeflores]

As a 29 year old person I haven't really thought about having a life insurance policy for myself or a retirement plan. I've always been told by my parents and grandparents to get term life, if I ever got a life policy and I've used a 401k plan with any company I've worked for. I have a friend who showed and told me about indexed universal life and showed me the benefits of having a plan like this. My question is would it be smart for a person my age to get an IUL policy or just stick with a term plan and a 401k plan?

 

[SingingSabre]

IULs are fantastic tools, as long as you can find one with a decent cap (12-15% tends to be what I aim for).

They're about 70% of what I sell. I'd go with one.

 

[Norwayguy]

The IUL may not end up with the higher account balances but ability arbritage on the loan withdrawals. As I point out to my clients between now and retirement 3 things could happen:

1. You never reach retirement age. From day 1 the IUL provides a larger tax free death benefit.

2. You get sick or hurt and can no longer work. If this happens the chances of you continueing to contribute to a retirement account becomes nill. While with the IUL the carrier continues to make the stated premium payments until age 60 now that is not the 62 or 65 most of my clients are thinking of contributing too but its better than a poke in the eye with a Sharp stick.

3. You reach retirement and with the overloan protection riders on the IUL you can have a pretty secure retirement income stream.