No. of Recommendations: 0
I don't know if you're missing anything, Dave, but the parameters, what-ifs, definitions and machinations have gotten so complicated as to render a comparison (S&P500 vs. IUL) moot.

The practical reality is that an IUL...

~ Protects your principal from ALL market declines. (Zero is your hero.)
~ Pays a death benefit, in the event of your demise, to heirs in many multiples of your total contribution.
~ Charges fees far lower (.75-1.20%) than mutual funds, 401(k) and IRA (3-4%).
~ Offers certain policies with an unlimited upside (no caps); i.e. Allianz's proprietary blended index.
~ Ensures that ALL gains are protected.
~ Provides an "annual reset" to ensure that your account participates in periods of robust market appreciation.
~ Distributions are tax free.
~ In some states, IULs feature ABR (accelerated benefits rider) in the event of chronic, critical or terminal illness. (Not available in CA.)

Compare the above against trading naked in the S&P500. No contest, in my opinion, albeit we don't seem to be able to arrive at a simple comparison of percentage gains via back testing.
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