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With substantial index universal life (IUL) policy premiums anecdotally funded through third-party loans, it might be expected that buyers would be sophisticated and apply customary due diligence practices when considering this approach to funding. However, despite the popularity of these arrangements among high-net-worth individuals, the various risks--not just the opportunities--are poorly understood. As a result, a growing number of investors have initiated lawsuits with allegations of surprise, anger, and claims of "being taken" after entering premium financing transactions. The authors provide a case study exploring the analytical techniques that should be performed before plan implementation and best practices that address the confusion among producers and consumers when evaluating how insurance products and premium financing interact under volatile economic conditions. [ABSTRACT FROM AUTHOR]

Whole life insurance is structured to guarantee policy premiums, cash values, and death benefits from the time of purchase until the time to file a death claim. For more than 200 years, whole life was not only the product of choice to assure lifetime bene- fits, it was essentially the only choice. This tradition was upended with the introduction in 1978 of universal life (UL). UL was the first product to break from up-front guarantees with an orientation depending on largely nonguaranteed elements. "Premiums" haven't been the same since. [ABSTRACT FROM AUTHOR]

Building on the July 2022 "In the Client's Best Interest" column in which an aspirational ethos was suggested for clearly addressing and meeting a client's expectations, this column examines in greater detail and scale of timing the agent's intentions and ability to meet a client's lifetime needs--and the ongoing management of their policies. Two guest columnists have joined the author to contribute to the content. [ABSTRACT FROM AUTHOR]