When it comes to IULs, I must address the elephant in the room. Many videos out there refer to the IUL as a scam. Unfortunately, the IUL is dependent on the agent who is presenting it.
I have seen multiple examples of clients of other agents who were sold a bill of goods. You see, the truth is that the higher the death benefit the higher the commission for the agent. Whereas a tax-free retirement plan, which relies on a lower death benefit and a higher investment portion, reduces the agent’s commission. This creates a tempting scenario for the less-than-honest agent.
If you use my agency (the Life Insurance Safe Zone), I will let you know about this potential conflict upfront.
If you choose to use another agency, make sure that they know that you know the basic structure of an IUL.
So, the IUL can be the most powerful and flexible policy available, or it can be the product of an unscrupulous agent taking advantage of an uninformed buyer, and thus getting the reputation of being a SCAM.
So, the conclusion is that the IUL itself is not a scam, it is the most flexible and powerful policy out there. However, it is a favorite plan for agents who are scammers. This, unfortunately, gives the life insurance business a bad rap.
Be VERY CAREFUL as to who you entrust in this business and become informed, or else you will also be asking “Are IULs Scams?”!!