IUL

My friend asked about this indexed life insurance policy that he is being pitched. I’m very against the policy because he can do so much better investing in VOO and buying term in the mean time. He has about $5m in assets and owns a business producing $400k in profit per year. (All inherited but stil appreciates the value) His proposed policy offers a 9.5% cap on returns and a $1.3m death benefit initially. He will be paying $50k a year for ten years. I advised him that the plan is a rip off. There is inflation risk due to government deficit spending and the 1.1% management fee is egregious. I’m writing this post to see what is the counter argument? Why would anyone buy this? The policy decreases volatility. I see no other benefit. I’m sincerely asking, I don’t care to argue, what is the benefit of IUL? I see guaranteed, median projection and optimal projections denoting certain gains that I find underwhelming. Asking for a friend.

submitted by /u/Affectionate-Bread84
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