No. of Recommendations: 2
AJ, while this is indeed a finite risk, it's a very weak argument against IULs. The chances of this type of thing happening are minuscule. Weak arguments are generally better left unsaid; they detract from the strong arguments and hence weaken the overall case.

Actually, the fact that there is a finite risk, miniscule though it might be, is a strong argument against the "There is NO risk with an IUL" and "IULs are COMPLETELY safe" positions that have been touted by IUL proponents. Trying to sell a product as 'NO risk' product, when there is, indeed, some level of risk, is disingenous at best. People who decide to buy IULs need to be aware that they are buying into a single company risk as part of their 'riskless' strategy.

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