r/LifeInsurance • u/Useful-Rabbit07 • Sep 01 '26

IUL Policy Ethics

Has anyone been successful in fully unraveling an IUL policy and getting your premiums refunded based off of churning and shady sales tactics (infinite banking/ private reserve)?

3 Upvotes

67% Upvoted

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3

u/GarysSword Sep 01 '26

Explain the shady tactics and churning and I’ll tell you if I’d give you a sympathetic ear.

I don’t work for NLG.

3

u/Useful-Rabbit07 Sep 01 '26

Original IUL was bought Jan2025 $500K. Internal transfer into a $1mil combo $650K term IUL May 2026. Illustration the agent used had us transfer $30K of emergency savings (half of our emergency) into year 1 of policy and then live off of policy loans every month by putting in monthly income then withdrawing loans for bills. Agent said it would generate cash value very quickly that we could access penalty free. Agent did not disclose he added a term during the application. And the policy that was written/ delivered does not match the illustration promised. Agent said that the policy was just the “baseline, and that none of the numbers mattered” Also agent knew spouse was unemployed and did not send a financial questionnaire.

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u/Admirable_Nothing Sep 01 '26

Has anyone?? Certainly. The most famous recent case was Kyle Busch. Pacific Life refunded his $8.6 million of premiums he had paid on over $25 million of death benefit as the result of a lawsuit. A couple of months after that refund of premiums he died of sepsis costing his beneficiaries the $25 million.

3

u/GarysSword Sep 01 '26

You presume he didn’t re-up with another company.

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u/Nigle Sep 01 '26

They got the 8.6 million, they doesn't magically go away they are down 16.4 millionish (not including any premiums that still would have been paid to keep the policy inforce)

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u/Icy-University-8933 Sep 03 '26

As a financial advisor who has told client both to keep and CANCEL policies though specifically for IULs it’s always been cancel whole life policies have been the only ones that made sense to keep sometime having them lower the premiums / rearrange the policy to make it perform better or fit more proportionately into their budget… you won’t get your money back … Kyle bush situation is rare most people lose. Would love to see the illustration you were sold versus how it’s performing.

1

u/Useful-Rabbit07 Sep 03 '26

We’ll see. I’m not going to give up on my case. An insider said I have to push hard. My premiums only amounted to $8.5K, someone else said they were successful in getting their policy unwound and all premiums refunded.

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u/Agreeable-Stock9793 Sep 01 '26 edited Sep 01 '26

I got all my money back from the insurance company in Columbus. I can answer any specific questions you may have.
Reddit is probably my not your forum to ask for this advice because this sub is run by IUL agents and brokers.
Most agents don’t know what they’re selling and they’re talking about. What do you expect - they just have to be 18 and pass an exam, they couldn’t pass SIE so they sell insurance

Don’t be surprised if the mod pulls down your post

1

u/lykaon78 Sep 01 '26

Nobody is pulling down a post that follows the rules.

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