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Hi Ray,

I think you hit submit as I was answering synchronicity's Q in this regard... but I'll double tap it anyway.

At that point I believe you are in deep sh*t.
"if the amount borrowed plus interest ever equals or exceeds the cash surrender value, the policy can terminate"

*UNLESS* the automatically selected 'no lapse overloan rider' is in place (and the only way for it not to be in place is to manually deselect it... and its free... so there is no sane reason to do so.)

In such case, the carrier waives any premium or other charges that the accuont cannot internally afford to maintain from its own yield.

Tell me again that there is no risk with an IUL.
I've never said there is "no risk." You clearly are exposed to the risk of 'no home runs'...

With a *properly designed* IUL, you have no market downside risks (including market downside risks of lapse due to the policy having been overloaned, as you've just described.)

Dave Donhoff
Leverage Planner
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