About The IUL Experiment

The IUL Experiment is the chronicling of an actual Indexed Universal Life ("IUL") insurance policy intentionally structured and funded to be used as a Life Insurance Retirement Plan ("LIRP")

Through this website, you have access to the full suite of Policy Documents, including a third party independent analysis of the policy using the Veralytic analysis software, as well as articles and videos that explain IULs and LIRPs in general, and the particular policy used in the experiment and its performance throughout the years

The IUL Experiment is being conducted by me, Andy Panko, CFP®, RICP,® EA, a practicing fee-only financial advisor who focuses on tax-efficient retirement planning and investment management. Additionally, I am also the creator of the Retirement Planning Education podcast, YouTube channel and Facebook group, all of which can also be found at www.RetirementPlanningEducation.com

I am the owner of the policy used in the experiment

IUL policies are arguably the most complicated form of life insurance. In the last decade, they have been increasingly sold as "tax-free retirement income" tools under marketing names such as LIRPs, The LASER Fund, Private Reserve Accounts, Tax-Free Retirement Accounts and Section 7702 Plans

After spending the last few years learning the product and how it could potentially be used as a retirement planning tool, I realized there are lots of false, misleading and half-truth claims and sales pitches made about the product, particularly about how it should be expected to perform in the future

When questioning and challenging such claims, I was told by those who made the misleading or inaccurate representations that I don't understand the product and am biased against it

In trying to independently research the validity (or lack thereof) of the claims, I realized there is a lack of consistent and unbiased public information and data about IULs, specifically those used as LIRPs. Therefore, I decided the best way to try to see how an IUL used as a LIRP actually plays out is to buy one of my own and fully document it for all to see, learn and form their own opinions and views of the product

The IUL Experiment is an ongoing initiative that will last multiple decades

Using an IUL as a LIRP is a long-term strategy that is intended to last throughout the policyholder's/insured's life

The policy used in the experiment went in force on December 15, 2022, and terminates the sooner of 1) the insured's death, 2) when the insured reaches age 120 or 3) if/when the policy is surrendered or lapses

The policy was purchased from Minnesota Life Insurance Company, dba "Securian". Specifically, it's Securian's "Balanced Growth Accumulator II Indexed Universal Life" product

The initial death benefit is $100,000, which is the smallest Securian would sell. Considering the policy was purchased mainly as an experiment, my intention was to minimize the total amount of dollars required in case the outcome of the experiment ends up worse than expected

However, the amount of money that will ultimately be paid into the policy will be the maximum allowed for the size of its death benefit. Therefore, while the absolute size of the policy and potential future benefit is less than LIRP advocates would generally recommend, the policy is nonetheless properly structured and will be maximum funded for its death benefit to give it the best chances of performing as desired

To see the in force policy, illustrations and related marketing material, refer to the Policy Documents page

Don't expect any two IULs to perform exactly the same. While the intention of this experiment is to show how a properly structured and maximum funded IUL used as a LIRP ultimately plays out, the results of the policy used in this experiment may not be indicative of the results of other IULs

Like any permanent life insurance policy, an IUL is a customized contract between insurer and policyholder. Different insurers' IULs may have varying structures, features and costs. Additionally, since these products are first and foremost life insurance, the outcome may be different amongst policyholders due to differing longevities of the insureds. Furthermore, the interest credited to the cash value portion of each IUL will differ based on the underlying index(es) selected, the timing and amount of premium paid, etc.