We have discussed indexed universal life insurance (IUL) at great length in previous podcast episodes, but we know the big question remains: does it work? So, to further investigate that question, we decided to update a bit of an experiment we ran about ten years ago.

We will use a hypothetical IUL contract (a real contract from which we have borrowed heavily, but we won't name names) with a minimum interest rate of 0% per year and a maximum of 10%.  We're viewing this from two different approaches, one will be a model based on Monte Carlo methods, and the second will be a historical analysis of 140 years of annual growth in the S&P 500 index. With the S&P index, we used a mean return of 10% with a standard deviation of 15%.

If that comparison interests you, please listen to the full episode. __________________________________________

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