However there's a floor for losses on bad years because these policies have minimum interest payments. And so that alone basically eliminates a lot of the risk involved with that because you see growth on good years but you don't see decline on bad years. And that's a huge selling point to me And the reason they do this is the money is not directly invested into the market It's just linked to it in a mirrored fashion. Other advantages to an IUL are the cash value grows at a tax deferred basis meaning while you're in your thirties or forties during your prime earning years you might be in a higher tax bracket. But when you get to your retirement years your income's less you're in a lower tax bracket. And that's when you cash out your IUL to maybe put it into a retirement income since it's tax deferred. That's when you pay the income tax on it the capital gains tax when you're in the lower tax bracket and therein lies an advantage. Of course I always recommend you speak with your taxi specialist before you make any moves like this because they're the experts in that field.
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