Within the IUL, gains and distributions(loans) are tax free - not so with most other types of accounts (roth IRA being an exception). What is better an 8% tax free gain or a 10.5% gain being taxed as a combination of capital gains and dividends? That can only be answered using very specific individual data.

Not to mention that if the insured dies, his estate gets a multiple times bigger payoff than the beneficiary of an IRA account.

Example: Insured funds a policy with $100,000 which buys $400,000 face value life insurance. In addition, an Accelerated Benefits Rider makes the full face amount available in the case of terminal, chronic or critical illness.