Episode 221: Indexed Universal Life is Too Expensive! (Dave Ramsey Debunked)

Dave Ramsey and other financial gurus claim that indexed universal life insurance(IUL) is expensive and a ripoff. Are they right?  Suzie Orman even says you should never work with an advisor that recommends IULs as a possible investment option.  According to David, when someone tells you that IULs are expensive, the first question you should ask them is, compared to what?  David compares the fees you would likely pay in a traditional tax-free investment versus a lifetime IUL.  David explains that judging IUL fees only makes sense if you calculate the expenses over the product's lifetime and not the first 5 years when the fees are the highest.  In today's example, David uses a 40-year-old man investing $20,000 a year into an IUL and compares the fees if the same man followed Dave Ramsey's investment advice.  In the first year, the man will pay $3502 for the IUL compared to $300 on Dave Ramsey's SmartVestor Pro program - maybe Dave Ramsey was right, after all. However, by the 10th year,...