Over the years we've seen our fair share of dubious sales practices used by "professionals" to sell the whiz bang awesomeness of cash value life insurance (both whole life and indexed universal life). 

But none as egregious as when we see financial professionals intentionally inflating the rate of return by plugging in an artificially high tax rate in the illustration software. It's done by using a taxable equivalent yield calculation that assumes a very high effective tax rate (north of 50% in many cases).

Obviously, this makes the non-taxable nature of cash values look much better. But it's painting an unrealistic comparison.

Listen to the full episode to find out why we very much dislike this practice.

And reach out to us if you'd like to explore how a cash value life insurance policy might work for you: https://theinsuranceproblog.com/contact