No. of Recommendations: 10
1. what are the odds of a significant drawdwon within 1, 5, or 10 years of a dollar coming in,

Ummmmm.....these are retirement funds, not funds for drawing down before retirement. And for those (like me) who are anticipating retiring in the next few years, putting the amount that will be anticipated as the drawdown need for several years into a combination of cash/cash equivalents and dividend payers that will generate cash, and then rotating more investments into cash/cash generators when making withdrawals is a reasonable way of dollar cost averaging drawdowns. The portfolio probably won't maintain the growth rate that was obtained during the 'savings' period, but then again, it's supposed to be in 'drawdown' mode, not in 'growth' mode.

2. what are the odds of a significant cash-demand in life elsewhere during the same periods,

That's what emergency funds are for. You keep telling us that the people that IULs are best suited for are those who have fully funded retirement savings and emergency funds, and still have investment capital available. So, which is it? People with fully funded emergency funds should have little need for a significant cash-demand in life elsewhere that can't be handled by the emergency fund. If you are suggesting that emergency funds be rolled into IULs, resulting in paying fees on your emergency funds, which would then only be available to you in the form of a loan that interest would accrue on, that seems even less desirable than the risk of losing money to inflation risk because of the rates that safe, liquid accounts are paying.

3. what are the lost opportunities if liquidity is unavailable during these periods.

With fully funded retirement savings and emergency funds, why would liquidity be unavailable?

AJ
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