Fit before design
A specific permanent need and the sequence handled — or stop there.
Design & strategy · Buying
How to buy an IUL without getting sold: the ten-question checklist
Buying an IUL well is mostly about asking ten questions before you sign — and refusing to proceed until each is answered plainly. Here they are, with what a good answer sounds like and what a bad one sounds like. Print it and bring it.
Who this is for: Anyone about to sign an IUL application — or sitting across from someone who wants them to.
Questions one through five: fit and design
Do I have a permanent coverage need — and what is it, specifically? (Good: legacy, estate, lifelong dependent. Bad: “everyone needs permanent coverage.”) Have I filled the match, term coverage, Roth, and 401(k) first? (Good: yes, here’s the proof. Bad: “this is better than those.”) Is the funding near the MEC limit or near target, and why? (Good: near the limit for accumulation; here’s the number. Bad: “target is the premium.”) Is the death benefit the minimum non-MEC amount for this premium? (Good: yes, and here’s the design with the increasing-then-level option. Bad: “we want plenty of protection.”) What riders are on it and what does each cost? (Good: a list with charges and reasons. Bad: “standard riders.”)
Questions six through ten: stress and honesty
What year does the policy lapse in the guaranteed column at my premium? (Good: past 90, here’s the page. Bad: “the guaranteed column isn’t realistic.”) Will you run the same design two points lower? (Good: already did, here. Bad: “that’s not how it works.”) What has this carrier done to caps on in-force policies? (Good: history in hand. Bad: “they’re a great company.”) How are loans illustrated, and what happens if crediting underperforms the loan rate? (Good: fixed and participating shown, overloan rider discussed. Bad: “it’s tax-free.”) What do you earn if I buy this versus term? (Good: a plain answer. Bad: anything else.) Ten plain answers mean you’re buying a product from a professional. Fewer means you’re being sold a story.
The essentials
What actually matters here
Design before stress
Max funding, minimum death benefit, justified riders.
Stress before signing
Guaranteed lapse year, lower-rate run, cap history, loan mechanics, compensation.
IUL can genuinely fit when…
- All ten questions answered plainly, in writing
- The design survives the guaranteed column and a lower-rate run
- Term and the match are already handled
- You understand what the agent earns
Slow down when…
- Any question was deflected
- The guaranteed column was dismissed as unrealistic
- You were asked to sign before seeing the cost pages
Straight answers
Questions people actually ask
What should I ask before buying an IUL?
Ten things: your specific permanent need; whether the match, term, Roth, and 401(k) are handled; funding near MEC vs. target; minimum death benefit design; rider list and costs; guaranteed-column lapse year; a lower-rate rerun; the carrier’s cap-change history; loan mechanics and overloan protection; and what the agent earns. Plain answers to all ten mean a product; fewer mean a pitch.
How do I know if an IUL agent is honest?
They show the guaranteed column first, compare the design to term and whole life, run it at lower rates without being asked twice, explain rider costs and cap history, and answer the compensation question plainly. They also tell some prospects not to buy. An honest agent loses some sales on purpose.
Should I get a second opinion on an IUL proposal?
Yes — especially from someone who isn’t paid on the sale. A fee-only advisor or a CPA can review the illustration’s cost pages, guaranteed column, and funding design in an hour. We welcome that review; a design that survives scrutiny is the only kind worth owning.
Honest, or not at all
See whether IUL actually fits your situation
Tell us a little about your goals and we'll show you the honest picture — including the guaranteed column, the real costs, and whether term or whole life does the job better. We're paid the same either way, which is why we can tell you the truth.
- We compare IUL against the simpler options first
- Illustrations explained line by line, guaranteed column first
- Your information is never sold