David debunks the top 3 unsubstantiated claims that pro-life insurance agents on social media make about IULs.

David starts the conversation by explaining why we need to be clear on what an IUL is and what it's not.

David is a big fan of IULs because he believes they form a crucial part of a balanced and comprehensive approach to tax-free retirement.

Claim #1 - An IUL can beat the stock market - a TikTokker even went as far as to claim that there's an IUL that averaged a 15.3% rate of return over a 20-30 year period. 

David highlights that IULs were not designed to replace the stock portion of your portfolio - plus, there is no way an IUL can average a 15.3% rate of return.

A good IUL with a dependable carrier should average somewhere between 6 to 8% over a 20 to 30-year time frame.

Claim #2 - You cannot lose money in an IUL. 

David explains that although you will never be credited less than a zero in an IUL, there is always the risk that your policy could take a hit during a flat year.

Claim #3 - The IUL is a silver bullet. 

No investment path is a true silver bullet. All an IUL does is give you the upsides of the stock market up to a cap with protection on the downside. 

David reveals that IULs cannot match stock market returns or a 100% guarantee against loss - but they are a fantastic alternative to bonds.

According to David, an ideal tax-free retirement approach should have between four and six streams of tax-free income.

Mentioned in this episode:

David's books: Power of Zero, Look Before Your LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code

DavidMcKnight.com

PowerOfZero.com (free video series)

@mcknightandco on Twitter 

@davidcmcknight on Instagram

David McKnight on YouTube