An illustration is a projection, not a promise. Here are the red flags we look for when reviewing an IUL, whether it's a new proposal or a policy you already own.
- Aggressive assumed rates. Be cautious of illustrations at the maximum allowed rate. Ask to see it at a lower rate too.
- Ignoring the guaranteed column. If the policy lapses in the guaranteed column at an early age, understand why.
- Minimum funding. A policy funded at the bare minimum has little room for bad years.
- Loans illustrated too aggressively. Income that depends on a big spread between crediting and loan rates is risky.
- Bonuses doing the heavy lifting. Multiplier bonuses often come with extra charges.
- No plan for reviews. IULs need yearly check-ups. Who's doing yours?
- A carrier you can't evaluate. Check financial strength ratings and cap history.
Want a second opinion? Send us your illustration through a free policy review.
Quick answer
Are IUL illustrations guaranteed?
No. Illustrations show projected values based on assumed rates. Only the guaranteed column reflects contractual minimums.