If you were in a five mile drag race and had the choice between Car A, which has an unpredictable engine that could break down or reach 80mph, or Car B, which never stalls but has a top speed of 35mph, which would you choose?

This example illustrates the current state of life insurance sales following the economic downturn that began in 2008. In a flash – or crash – variable insurance (Car A) customers who had purchased policies based on illustrations projecting 12% gains were brought down to earth. As a result, the pendulum swung from high-risk products to policies offering guarantees (Car B).

What if you could drive Car C, which never stalls when driven between 30-60 mph? Now which car would you pick?

Meet Car C: Index Universal Life

Indexed universal life products appeal to the current market desire for a guaranteed death benefit and cash values. But because the cash values are partially based on one or more external indices, it should perform better than universal life products over time – though its upside potential is limited. (Visit Lifespecs.com for a more complete definition of IULs.)

Nearly every carrier offers an indexed UL product that they feel gives them a competitive edge. Some feature multiple investment options. Some feature variable loan strategies. Some feature fewer options, but are easier to understand and explain.

So, with both downside protection and upside potential, why aren’t we selling more Indexed UL? Sound off below and help us provide answers and solutions in Part II of this blog.