Do indexed universal life policies actually work? I hear bad stories about about them, but another advisor is recommending one for our client.

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I feel if they are built properly they can be positioned as more of a conservative long portion of ones portfolio. They can be flexible and at times will make you look good. I wouldn’t suggest them as the only solution for a client but as a potential bond alternative it could be found useful in the distribution phase of retirement income

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I use IUL on LIRPs for the downside protection

When you say “do they work?” You need to clarify. Yes, they do work to provide a permanent death benefit IF PROPERLY DESIGNED AND PROPERLY FUNDED. Look for one with a no-lapse guarantee rider in case market performance is poor. It aggressively funded, there is the potential for decent cash buildup in certain plans. But overall, one cannot generalize that they are good or bad, do or do not work. Every policy is different and each is only as good as the skill of the agent designing and managing it.

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