Of course later in life your cost of insurance is going to get more expensive! You're a higher risk!

Common sense! But taking that all into account, it's expensive compared to what?!? The illustrations that show your cash value is already taking the COI into account. Did that person just looking at the COI and not bother to look at the interest gained?

Would you rather have that money in a 401k where you are at substantial risk for loss next time the market decides to take a nose dive and ruin millions of people's retirement plans, as well as be subject to taxation at almost 50%? Or maybe you would rather have it in a Roth-IRA which is still in the tax never bucket, but still pay exorbitant fees, not have the luxury of a guaranteed rate of return, liquidity before the age of 59 1/2 (without penalty), or the flexibility to put more than $5,500/year into it? In an FFIUL, at least I know that whatever the cash value at the end of the rainbow is, it is mine tax free + penalty free. I know that if I suffer a disability that requires long term care I can draw down from my death benefit to pay for my care without being a financial burden to my family (also tax free).

I know that WHEN I die, even assuming I get the worst rate of return possible, the premiums I put in will still be less than what the death benefit is and ultimately is still the best investment into my beneficiaries (also tax free). People who complain about FFIULs are probably the same people who would drive a Ferrari for the first time, crash it and blame the car bc they didn't know how to drive a stick shift.

Of course you will crash it, you didn't know how to drive it in the first place. Is that the Ferrari's fault?

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Anon, you ask "...[the FFIUL] is expensive compared to what?!?..." The answer: compared to *just about everything else.* This includes stuffing your money under the mattress.

Anon, it's no sense you going on about tax and retirement compares when the FFIUL holder is virtually *guaranteed* to lose the FFIUL--and LOSE EVERYTHING, including his death bennie and the $100,000s he poured into it.

Anon, as currently structured and horribly overillustrated at 6, 7, 8% and higher--the policyholder can expect a long-term CAGR of at most 2.5--4%--few if any of these policy will even survive to retirement.

As an investment vehicle, the FFIUL is not a whole lot better than a basic low-return savings account, yet soaks you for hundreds, even thousands, of dollars per year in fees.

Thanks for reading.


There is a small print that says gains are projected not promised. However, COIs are guaranteed to go up.

The policy fees, which certainly beat the promised 0.75% or 1% floor in return rate. When was the last time you check your interest gain with your FFIUL policy? What was it averaging the past year? As an agent you should have been made aware of the illustrated rate trending down recently, per regulation.

On another note, the money is not yours fully as it is called a borrow against your policy value, meaning you either have to pay it back into or risk defaulting your policy because of $100G+ yearly guaranteed cost of insurance in late life that will just keep increasing until the (short) end of that rainbow.

Lastly, IULs are an insurance product, not an investment, or a savings vehicle, as rightly stated so in the small print.

Plus, an insurance agent is not allowed to give tax advices (although you probably suck at it). Doing otherwise can be charged with misrepresentation the IUL products.

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