re: Index Universal Life Insurance

Some would suggest never using insurance as an investment tool. My personal belief is you acquire an IUL based upon your needs/desires.

For example. My wife and I have one. The intent is to have something to pass onto our children in the event of life departure. We did not opt for a term policy, which is cheaper, as it did not fit our needs. IULs can also be used as income in retirement and there is also the option to borrow from it (i.e. yourself) in lieu of the bank. I do not subscribe to the aforementioned, but it is an offering within the policy or shall I say contract.

These were all of my personal reasons, but they may differ for others or simply don't fit at all. They are, in some cases, considered expensive, and the seller does receive a commission which tends to disturb some as if the seller does not have mouths to feed also. Seller's commission is paid by the issuer of the insurance; however, the argument is positioned sometimes that the buyer is really paying for the commission via the fees.

You maybe presented with illustrations that will look pleasing, but don't allow that to be your sole reason to purchase. Again, purchase based upon your need.