"IUL: $586,000"The IUL is much more than that. Go look at my illustration.https://dl.dropboxusercontent.com/u/8644020/2013-09-13%20TEOY 40 = $769,585 at 100% of the S&P account's principal and reserves.What's the S&P account do on principal without its requisite reserves?I looked at your illustration, and also downloaded it. Too back I can't cut/paste to import the numbers into Excel. ;-(Frankly, it's typical insurance company illustration garbage. Even though it has a disclaimer, it is so misleading that it borders on fraud.It shows the account getting a steady return of ~8.8% per year, and ignores the fact that some years get 0% and some years get 12% (the floor & cap). This is just lying with statistics.Yet the fact is (for all 12 month periods for every anniversary month, from 1950 to 2013):* 30% were 0%* 43% were 12%* 47% were between 0% and 8%* 53% were between 8% and 12%* 56 times (7.5%) two years in a row had 0%* 9 times (1.2%) three years in a row had 0%On the good side:* 128 times (17%) two years in a row had 12%* 42 times (5.6%) three years in a row had 12%You can't just ignore this variance and call it a steady 8%. That's financial malpractice.
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