Index Universal Life Insurance

My agent keeps touting this EIUL policy from Western Reserve Life but it sounds too good to be true.

His claim is that with $250/month (for 30 years) I can have a kick-ass life insurance policy and a nice retirement nest egg. If it grows at the maximum of 12.5% in 30 years I have something like $890,000 in a retirement plan and a $1.2mil life insurance policy. I've been told to expect closer to 8% (which still turns out to be a good amount) and anything extra being a "bonus".

He stated that it is indexed to the S&P 500 and even if it is down, I still gain 1%.

I am already aware of the big commision the agent can make, but are these policies legit?

Somehow this seems to good to be true.

Thoughts??????????

 

If it is too good to be true....


Checked them out on ripoffreport.com and apparently according to some who got ripped off, they make their surrender fee pretty much the same as the cash value and they like to make people appear to be late, take all their cash value, and then charge them fees to reinstate the policy with no cash value. Nice company.

http://www.ripoffreport.com/searchr...&q6=&q3=&q2=&q7=&searchtype=0&submit2=Search!

Course, it isn't too hard to know where I stand on these things but then, I don't sell or promote them. Pretty much every consumer advocate is against these policies because of their poor track record. Clark Howard, Suze Orman, Dave Ramsey and even ConsumerReports advises to avoid them unless you are pretty much very wealthy.

http://www.daveramsey.com/the_truth_about/life_insurance_3481.html.cfm

I'll make the same argument I made earlier, Dave's show is broadcast to about 4 Million a week and his TV show is on FoxBusiness which is in the homes of 10s of Millions now. If he isn't telling the truth, wouldn't they shut him up as he is getting many people to cancel these policies. If they can't stop him, maybe it is because he isn't wrong.