Over the past decade, sales of individual Indexed Universal Life (IUL) insurance policies have grown with great rapidity in the US. Why is IUL so popular, and why have its sales increased so rapidly and significantly?
There is one overriding fundamental reason: it is a product that strikes a good risk-reward balance between traditional UL and variable universal life, both for the buyer and the insurance company offering the product. This has resulted in substantial recent IUL product development and marketing activity. Also, as IUL is not considered a security in the US, life insurance agents selling the product do not need separate securities licenses, substantially increasing the number of potential sellers.
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