UIL (?) Universal life insurance versus a ROTH IRA

I have heard about UIL(?) or Universal Life as a better way to save money, borrow money and transfer wealth. Will you give me the audience a comprehensive analysis and comparison of the two.


The people telling you that stand to make a very large commission if you buy. I’m not going to write out all the reasons why it’s a bad idea for the vast majority of people, but here’s just one author’s explanation.

Do the math…

Universal Life Insurance equation:
your premiums - (fat commissions + sales ads + big fancy office + impressive skyscrapers + actuarial tables + your aversion to risk) = your real benefit


ROTH equation:
your after-tax payments + (proven track record of earnings in your choice of investment & maint costs + tax-free earnings + no obligation or penalty to stop participation + 100% of the proceeds are yours alone) = your real benefit

It’s your choice… :thinking:

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I hope you do not plan to use that Commissioned Life Insurance SALESMAN as your Financial Advisor!!!

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Hi, and thanks for your reply. I don’t plan on using anyone I can’t verify as a fiduciary…I have picked up that much from listening to Clark and a few others. I have seen several things online touting the virtues of that as a financial tool and I know nothing about it. That’s why I reached out on Clark’s page.

Thanks again

Hi and thanks but you did NOT answer the question…can you reread the question and provide an answer…

…or otherwise STFU

Have a nice day,

Unless you are exceptionally maze dull, the three answers provided in response to your OP should give you an idea of our opinions.

I suggest you do a little research that doesn’t require interfacing with real people.

… or maybe you should just STFU

Have a nice day!.. :slightly_smiling_face:

Than you have no business investing in what you don’t understand. You can avoid unexpected surprises and capital calls of ULI if you understand the product and avoid using them. Generally insurance and investments shouldn’t mix - you pay more and get a smaller return on both

You cannot rely on the insurance company to pay dividends in the proportion to their illustration which cuts your return and increases insurance cost

Clark recommends you max out all your retirement plans before even considering whole, variable or universal life insurance and if you do own a ULI contract, Clark recommends using that $150 service that can evaluate your life insurance contract. I don’t know if the link evaluates life insurance that you’re considering to buy such as premium and cash value


P.S. from the website

To do so, we need either the sales illustration for a new policy or an “in-force” illustration on a policy you have owned for some time. Either can be emailed to you and relayed to us. We use an actuarial technique known as the “Linton Yield,” which derives interest rates. It may help to explain it this way: the premium for a cash value policy buys two things, death protection and a kind of savings account, the cash value. In order to derive an interest rate on the savings portion, one must impute a value to the death protection, the annual excess of the death benefit over the cash surrender value. We use non-guaranteed illustration values to derive these estimates; guaranteed values are not realistic because they assume extremely high mortality rates as a safety measure. We have been doing this work since 1984; there is little we have not coped with.

My request for information asked for “A comprehensive comparison of the two” NOT an opinion or an assumption of my intentions. I was merely asking for information though the Clark Community because I could not find a podcast or other resource on his page related to the topic. However it seems, based on the responses, most of the community are arrogant know-it-alls that have no people skills or any desire to educate versus belittle and condescend. What do Clark and Christa say about the responses I received?

Hey Lighten up… are you not aware how public boards work.
No one knows your level of expertise. Folks are trying to be helpful. You are not obligated to adhere or even read their content. Frankly this board is pretty tame compared to many.

Not to insult you… but your question suggests a newbie to investing. Insurance is for Insurance, not for investing. When I reached the point where I no longer needed insurance I cancelled the term policy. That is the beauty of term insurance.
Your Investments are separate… cancel when you no longer need it.

This may help… Here is Clark’s take on investing with Banks and Insurance Companies.

If it ain’t Vanguard, Fidelity, TRP or Schwab, I ain’t interested.

Found the life insurance salesman!

The reason you’re not getting “A comprehensive comparison of the two” is because they are completely different products, with completely different uses. One is for saving for retirement. The other is . . . not. Anyone who tells you otherwise stands to make a very large commission. Feel free to buy it if you want. But don’t say we didn’t warn you.

After all these years, people still don’t understand that you don’t invest in insurance, you buy insurance.

I know they are different…I was hoping to get a narrative on exactly HOW they were different. and again I REPEAT…I NEVER SAID I WAS GOING TO PURCHASE EITHER ONE…Holy Frijoles…so far I have only heard from arrogant intelligent imbeciles.

You might as well ask us to compare an orange to a rock.

This might help:

The purpose of insurance is to cover/replace some form of financial loss; the purpose of investments is to increase assets.

And here’s two graphs showing actual 10-year performance from an real ROTH account.