I'm hoping to get a lively debate going here. Some agents sell Index Universal Life and LOVE IT, but some say the cost of insurance can be too high. I'm not talking about some small fees. I'm talking about if a person is older or in bad health, almost every dime they put into the policy can go towards the actuall expense of receiving that $500,000 death benefit one day. Many sell the I.U.L. as an investment, which of course is illegal. It IS death benefit insurance first. So WHY do some many agents sell the I.U.L. to persons who want to save for retirement? Money can grow quite well and loans can prevent taxation, but the cost of the DB, my God! Then there are those who like to avoid the whole insurance-not an investment-death benefit costs all together and simply sell a person an annuity. The problem... With an I.U.L., you can start a client often with just a $200 a month committment. Most annuities laugh in your face unless your front loading big time! So then, maybe the I.U.L. is better for someone who can just put in a little bit of money each month. My Answer: The I.U.L. MEC! You have no 7 pay rule if it's a MEC, which means you can pack away $2,000 a month into an I.U.L. and keep the death benefit at a measley 50 grand so you don't have the high DB cost. Then again, an I.U.L. does not have the 'Lifetime Income Guarantee' rider that an annuity may have. I think many people would angle to sell an annuity. However, if you sell an I.U.L. with a $200 a month commitment, you can earn about $2,000 in commission. It is my understanding that if you start an annuity with $200 (if they'll even let you, which they WON'T) and a commitment to put in an additional $200 a month, that the commission would be about 50 cents. I'd REALLY like to hear your two cents on this.