Whenever the stock market experiences a growth spurt, it’s hard for even the most conservative investors to sit on the sidelines. That phenomenon, no doubt, explains the dramatic rise in something called indexed universal life (IUL) insurance over the past few years.
Like other permanent life insurance products, IUL features an insurance component as well as a cash benefit that holders can tap when the need arises. But there’s a key difference. Instead of crediting a policyholder’s account based on conservative bond
Unquestionably, indexed universal life policies are one of the hottest offerings in the financial sector. According to the research firm LIMRA, IUL premiums rose by a staggering 23% in 2014 alone.
But they’re also one of the most contentious. Now, some financial gurus urge investors to steer clear of whole life policies altogether, repeating the old maxim “buy term and invest the rest.” With IUL, however, the debate is particularly fiery. Even New York’s top insurance regulator has called into question the sales practices surrounding this trendy form of insurance.
Read more: http://www.investopedia.com/articles/personal-finance/042115/comparing-iul-insurance-iras-and-401ks.asp#ixzz3Y4RANG4i
Comparing generic retirement savings plans is like comparing cars without mentioning the make and model. Not all products are made the same. The best way to get a fair comparison is to have a financial planner that you trust evaluate the actual retirement savings plans you are considering. Most of us just want to know how much money will I have after taxes, fees and expenses.
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