Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

The Financial Trap of IULs

21 Jan 2025 · 0 min

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0:27

A short recorded discussion (YouTube video) where Richard Canfield explains how surrender charges in universal life insurance—particularly indexed universal life (IUL)—affect policyholders, noting typical de-escalation over years and the risk that policyowners become ‘upside down’ around years two to three. The clip highlights that many IULs remove surrender charges after year 10.

Often we'll see people who have a universal life contract of some style, maybe IUL or other, and there's surrender charges on there, and they don't understand when they're there or why they're there when they fall off. And so how do you find that that creates an impact for a lot of the people that you're litigating on behalf of, That's a big deal. Because typically in the States, the surrender charges are they DE escalate year one through 10, highest in year one, lowest in year 10. And usually after year 10, there's no surrender charge in most IUL products. The that factors.
In usually around year.
Two or three, where that's about the time someone may realize they're upside down.