The Problems With Indexed Universal Life Policies

Regulators have recently expressed worries about the sales practices regarding some insurance products like indexed universal life policies. The sales pitches usually state that you’ll make money with these products when the market goes up and won’t lose money when the market goes down. Listen to Ric Edelman explain the catch and expose the whole truth about these products.

An index is a portfolio of specific securities (common examples are the S&P, DJIA, NASDAQ), the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an index. Past performance does not guarantee future results.