Like we've discussed before, if the client realizes the risks and can shoulder that burden, it can be a great option.Tom Love has an IUL presentation that is pretty convincing (convincing to me at least) that IUL is at best an accumulation vehicle, but because the cost of insurance in an IUL is a future unknown that will increase, and since the illustrated values are based on actual not average returns, the IUL will not survive the trip down the other side of the mountain, i.e. it will not work as a distribution vehicle as illustrated. If we go back to my first post in this thread, what got my attention was the way the IUL was illustrated as a distribution vehicle. I am not comfortable offering it to my clients as a solution to tax free cash flow in retirement.
For most (and the way it is often sold) it is not a great option.