re: Indexed Universal Life Insurance

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NO it really doesn't depend on him and his situation, no person or situation conforms to a piece of shite product.

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How do you know that? Do you know his tolerance for risk? I'm not sure what you have against permanent life insurance. Should it be used as a primary savings vehicle for retirement? Maybe, maybe not. Depends on the individual. Some people actually like the idea of a guaranteed amount of money in the future with no risk of loss. You can't force someone to take on the risk and invest in the market because they could potentially earn more money.

My problem is that many people invest above their risk tolerance and are overexposed to the market. They invest in the market because they have no idea of the other savings options available. They are put into a mutual fund that they have no idea about and don't see an advisor ever again. Sure they could potentially have a higher return by investing in the S&P long term. However, they could also lose 40% of their portfolio value, like in 2008.

You say, "Buy term, invest the difference." The problem is people don't invest the difference, they spend it. This approach could work if the average American was disciplined with his/her finances, but they're not. It's why 75% of retirees have not saved enough for retirement. For the financially savy/disciplined, more power to you.

The great thing is everyone has their own investment philosophy and tolerance for risk. I have no problem with people who want to buy term and invest only in the stock market. I also have no problem with people who want to use permanent insurance cash value, CDs, and annuities.