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KluverBucy,

[SNIP]IUL "distributions" are a loan and that the full account balance remains available for the crediting of any index gains. This of course means that the account balance may actually decline if the index gain is less than 6%, but will actually grow faster in any year that the index gains more than the interest rate on the loan.

Ok, so I retire on an IUL and start taking "loans." These loans owe some interest that accumulates every year, compounding.

When I die, what happens to the "balance?" Are the loans "paid" along with the accumulated and compounded interest?

I am positive these people are not giving away free money.

With the B&H, it transfers through inheritance but it sounds like using an IUL at the end is just going to shovel more money down the rabbit hole.

Just curious if we have some facts on this.

Gene
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