FlexVault vs Traditional IUL
Why a four-component system dramatically outperforms single-component product approaches. The difference between buying a product and implementing a strategy.
Traditional IUL is a product sold by insurance agents with a single component (policy crediting) generating 6-8% returns and requiring 10-15 years to breakeven. FlexVault is a four-component system integrating IUL foundation + active management + tax planning + portfolio leverage to target 12%+ returns with breakeven in just 3 years. The difference is buying a product vs. implementing a comprehensive wealth-building strategy.
At a Glance
| FlexVault Returns | 12%+ (4 components) |
| Traditional IUL Returns | 6-8% (1 component) |
| FlexVault Breakeven | Year 3 |
| Traditional IUL Breakeven | Year 10-15 |
| Key Difference | System vs. Product |
Feature-by-feature analysis of FlexVault vs Traditional IUL
Side-by-Side Comparison
| Feature | FlexVault Strategy | Traditional IUL |
|---|---|---|
| Design Focus | Cash value optimization | Insurance-first |
| Target Returns | 12%+ (4 components) | 6-8% (single component) |
| Breakeven Timeline | Year 3 | Year 10-15 |
| Income Start | Year 3 possible | Year 10-15 |
| Management | Active optimization | Set it and forget it |
| Tax Planning | Integrated | Not included |
| Leverage | Strategic integration | Not structured |
| Annual Reviews | In-depth strategy | Minimal or none |
| Carrier Selection | Performance-optimized | Often commission-driven |
| Ongoing Support | Comprehensive | Limited to policy service |
Where the return difference comes from
Return Component Breakdown
| Component | FlexVault | Traditional IUL |
|---|---|---|
| Base IUL Performance | 6-8% | 6-8% |
| Active Management | +1-3% | 0% |
| Tax Planning | +0-3% | 0% |
| Portfolio Integration | +1-4% | 0% |
| Total Target | 12%+ | 6-8% |
The +4-6% difference compounds dramatically over time
Over 25 years, a +4% difference can mean 2-3x more wealth
Why traditional IUL underperforms its potential
The Problem with 'Set It and Forget It'
Traditional IUL Problems
- ✗Agent sells policy, never touches it again
- ✗No optimization of loan-to-value ratios
- ✗No coordination with tax planning
- ✗No leverage strategy implementation
- ✗Carrier selection based on commission, not performance
- ✗10-15 year wait for breakeven
FlexVault Solutions
- ✓Active management from day one
- ✓Continuous loan-to-value optimization
- ✓Integrated tax planning coordination
- ✓Strategic leverage implementation
- ✓Carrier selection based on long-term performance
- ✓Breakeven in year 3
$100,000 annual premium over 25 years
Long-Term Wealth Impact
Traditional IUL @ 7% Net
~$6.4M
Cash value after 25 years
FlexVault @ 12% Combined
~$13.4M
Cash value + leveraged assets
Potential Difference: ~$7 Million
Illustration purposes only. Actual results will vary based on market conditions and individual circumstances.
Understanding the insurance industry
Why Most Agents Don't Offer This
Commission Structure
Traditional IUL pays upfront commissions. Active management and optimization don't generate additional compensation for typical agents.
Knowledge Gap
Most agents are trained to sell products, not design systems. The four-component approach requires advanced financial planning expertise.
Time Investment
Active management, tax planning, and leverage optimization require ongoing work. Most agents prefer to sell and move on to the next policy.
Frequently Asked Questions
Compare Your Current IUL to FlexVault
If you already have an IUL policy, we can analyze it and show you the potential difference. If you're considering IUL, see what the four-component approach can deliver.