The first check might be to simply apply the floor and ceiling caps to the S&P 500, as this would be the equivalent of applying the caps with absolutely no fees or expenses. If the strategy underperforms a mix of the S&PP with US treasuries at the same volatility, then there's no need to go any further. However, if it outperforms, then we would need to model it using the fees and expenses of the actual product.I should clarify that the above pertains solely to comparing an IUL as a cash accumulation vehicle to an equity/bond investment mix. There are other aspects of an IUL or any insurance product that may make them attractive, including but not limited to the death benefit inherent in life insurance and the tax advantages of an insurance policy (tax-free cash build-up and tax-free withdrawals through surrenders to basis and policy loans for any contract that is not a MEC). The suitability of any investment or any insurance product will be different for an individual depending on their objectives and goals.-synchronicity
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