1. Policy Lapse Risk - The Biggest Danger If premium payments are insufficient, policy charges are high, or cash value growth underperforms illustrated projections, the cash value could eventually be depleted, causing the policy to lapse and potentially triggering income tax consequences. Unlike Participating Whole Life Insurance where coverage gradually becomes fully paid for, the cost of maintaining life insurance coverage with an IUL policy keeps increasing, often becoming too much for the policyholder to handle. 2. Rising Insurance Costs Devour Cash Value The cost of renewable term insurance goes up over the years, meaning even more of the [...]