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I have not looked into things like this in depth but a few potential drawbacks;

1) The increase due to the market index may be capped at around 8% or less, this might not sound to bad but the market return is often lumpy and will sometimes go up 20 to 30 and when you chop these down to 8% the overall return starts to look puny, especially when the effects of compounding at the lower rate are taken into account.

2) Dividends are usually not included, in the return calculation so you automatically lose about 2% off the return.

3) Believe it or not, sometimes buried in the fine print it says that the insurance company has the right to change terms after a few years.

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