Just google "problems with indexed universal life"In a nutshell, the insurance company gives you the illusion of safe, solid returns and in return takes a big chunk of your money.Just based on what you've said, here are a few questions I bet you never even thought about:"capped S&P returns, capped at 12%"12% a year? Or 1% a month, or 3% a quarter? It makes a big difference.Is that cap set in stone, or can the company unilaterally change the cap?"prevents any loss at all. If market goes down, you just receive no gains.. but also no losses."If the market goes down, then there is a loss involved. Somebody takes that loss. The only two parties in the deal are you and the insurance company. If *you* are not taking the loss, then *they* are. Why would they do that? How can they stay in business while taking 100% of the losses? How many pages long is the contract? The one I once read was over 100 pages. Anything that long means they are going to steal you blind. It's too complicated for a mere mortal to understand, which means you'll never be able to spot all the gotchas.Run away.
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