I meant to compared it with Whole Life. Whole life has guaranteed lock costs whereas IUL type policy has variable cost structure. Whole life has a guaranteed yearly growth whereas in IUL if you have a negative market return then you get 0% plus the fees. Whole life has guaranteed death benefit (which really helps spend buy borrow die as you can spend more later in life) where as in IUL rising death benefit costs will force you to manage policy later n life.
The goal with insurance is to take out as many risks as possible and therefore a mutual (owned by policy holders) whole life company makes a lot more sense - its more on conservative side. Use it to store cash while getting ton of other benefits. Your $1 is doing multiple jobs (velocity) - accumulating cash growth, death benefit, ROTH like tax features, ability to borrow with no credit check, liability protection. Also for very little cost you can add disability (they will pay all your premiums including paid up additions) and terminal illness rider.
The risk is lack of guarantees and the costs are higher.
What do you mean by lack of guarantees? Thank you for the info btw
Thought its a insurance set up with the company
I meant to compared it with Whole Life. Whole life has guaranteed lock costs whereas IUL type policy has variable cost structure. Whole life has a guaranteed yearly growth whereas in IUL if you have a negative market return then you get 0% plus the fees. Whole life has guaranteed death benefit (which really helps spend buy borrow die as you can spend more later in life) where as in IUL rising death benefit costs will force you to manage policy later n life.
The goal with insurance is to take out as many risks as possible and therefore a mutual (owned by policy holders) whole life company makes a lot more sense - its more on conservative side. Use it to store cash while getting ton of other benefits. Your $1 is doing multiple jobs (velocity) - accumulating cash growth, death benefit, ROTH like tax features, ability to borrow with no credit check, liability protection. Also for very little cost you can add disability (they will pay all your premiums including paid up additions) and terminal illness rider.
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