The practical reality is that, dollar-for-dollar, over some long period of time for the S&P vs. a hypothetical IUL (they've been in existence for only about 20 years), the balance in the S&P account will be higher--depending, of course, where in the market cycle one pauses to compare.But the S&P has the risk of being slaughtered from time to time and the IUL doesn't.But historically, the only time that the slaughtered S&P is smaller than the IUL is if it happens in the early years. But in the early years: 1) the account values are quite small because they haven't had time to grow, and 2) the account value doesn't matter because you won't be withdrawing until many decades later.An S&P account that got cut in half from $2M to $1M is *still* more than a never-drop IUL account worth $500K.
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