IUL: Why It’s Not for Everyone, Even Though It’s Trending Today
These days, everyone is talking about IULs. They’re promoted as the perfect solution, the “star” product, and for many, the quick answer to financial problems. The issue isn’t the IUL itself. The real problem is how it’s being sold, how it’s being bought, and, most importantly, how it’s being understood.
The reality is clear: an IUL is not for everyone, even though it can be a powerful tool when used correctly and for the right profile.
When a Product Becomes a Trend
In the insurance industry, we’re seeing a concerning pattern:
agents who say, “I only sell IULs,” as if the product were more important than the person.
This is where it’s worth pausing and asking honestly:
Are we truly advising, or are we just pushing a product?
A good advisor doesn’t start with the product. They start with:
-
The client’s real needs
-
Their current financial situation
-
Their time horizon
-
Their risk tolerance
-
Their short-, medium-, and long-term goals
When everything revolves around the IUL, the client stops being the center of the conversation.
The Buyer’s Most Common Mistake: Wanting Fast Results
More and more often, you hear phrases like:
“I want an IUL because I want quick money.”
This is a dangerous misunderstanding.
An IUL is not a quick-money product.
It’s a tool that:
-
Requires time
-
Demands consistency
-
Works best in the long term
If someone enters an IUL expecting immediate results, either they’re misleading themselves or they’re being misled. In both cases, frustration is usually the outcome.
Responsibility Is Shared
This issue isn’t one-sided. Responsibility falls on both ends.
On one side, some agents
There’s a new wave of agents who, often with good intentions but little depth, act as if:
-
Only IULs exist
-
Every client qualifies
-
Every goal can be solved with the same product
That’s not advising. That’s selling.
On the other side, buyers
People who:
-
Buy because it’s trendy
-
Buy based on what they hear on social media
-
Buy without fully understanding what they’re signing
Financial trends, like fashion trends, don’t fit everyone the same way.
IUL vs. Guaranteed Policies: It’s Not a Competition
One of the most common mistakes is presenting IULs as “better” than everything else.
They’re not. They’re different.
Some clients:
-
Need clear, long-term guarantees
-
Seek stability and predictability
-
Don’t want exposure to market fluctuations
For those profiles, a guaranteed policy may be the best decision.
Pushing an IUL in those cases isn’t advising—it’s forcing.
The Difference Between an Advisor and a Salesperson
This is where true professionalism shows.
🔹 A salesperson pushes a product
🔹 An advisor identifies a need
An advisor’s role isn’t to impress with technical jargon or sell what’s trending.
It’s to recommend what truly works for that specific client—even if that means not selling an IUL.
That honesty is what builds trust, reputation, and real results over time.
Experience vs. Trends
After more than 14 years in the industry, one thing is clear:
products go in and out of trend, but bad decisions stick around.
An IUL can be:
-
A very powerful tool
-
A strong financial complement
-
An excellent strategy for certain profiles
But it’s not a universal solution.
And it’s definitely not for everyone.
Don’t Buy Based on Trends
The final message is simple but powerful:
👉 Don’t buy based on trends—because trends don’t fit everyone.
Get informed. Ask questions. Analyze. And surround yourself with advisors who prioritize your needs over any product. That’s where real financial planning begins.
If you’d like to learn which policy you truly need, click here and receive a completely free consultation with me.
