Episode 219: Dave Ramsey vs Indexed Universal Life--5 Claims Debunked

What are Dave Ramsey's thoughts on Indexed Universal Life Insurance (IUL)? David debunks the 5 myths presented in Dave Ramsey's article on why you should run away from IULs. Myth #1: IULs never perform to their full capacity because the cash portion of the portfolio gets eaten up by the super-high fees. Yes, the fees will be higher at the start of the program but will reduce dramatically the longer you keep the policy. In fact, when you average the fees over the entire program, the costs translate to less than 1% of your balance per year. Myth #2: IULs contain numerous fees ranging from surrender charges, administrative charges, premium expenses, etc.  David explains that IULs only work if you keep them for life - so fees should only be calculated after the contract expires, which often translates to 1% per year. Myth #3: When you cancel your insurance policy, you give up your death benefit and almost all the cash value you've managed to build. For David, this is by far the most ridicu...