An RIA-Friendly Life Insurance Strategy for Retirement Security (Part One)

David MacchiaAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

Some life insurance marketing sickens me.

Recently, I suffered through 53-minutes of blather before the speaker revealed that what he had been hyping was life insurance. Overly hyped life insurance presentations receive a level of attention from consumers they do not deserve. This is especially hurtful to me because I love life insurance and appreciate its unique value. I am the inventor (1987) of the concept of using income-tax-free policy loans to boost retirement security.

But in too many instances, my invention has been bastardized and debased.

There’s a lot wrong with the way some market life insurance. Most of the abuses I’ve seen involve indexed-universal life (IUL). The often misleading marketing leads to criticism of the IUL policy, a fact that is unfortunate. The problem is not with the policy, it’s with its misuse by certain life insurance agents.

With this as a backdrop, I ask you to keep an open mind about what I’m going to assert: A new life insurance strategy, one that is funded by index universal life, offers investors so many advantages it deserves to be enthusiastically embraced by the RIA community.