Risks
It’s important to note that IUL policies are not without risk. The cash value of an IUL policy is tied to the performance of a market index, which means that it can fluctuate based on the performance of that index. Policyholders could potentially see a decrease in the cash value of their policy if the market performs poorly.
Ultimately, whether an IUL policy or a 401(k) plan is a better choice will depend on an individual’s specific financial goals and circumstances. It’s important to carefully consider the potential risks and rewards of each option and to work with a financial professional to determine the best course of action.