Indexed Universal Life vs Whole of Life Infinite Banking?

The main difference between IUL and Whole Life for Infinite Banking is their cash value growth potential and flexibility. Whole Life offers guaranteed, steady cash value growth, providing predictability for long-term planning. IUL links its cash value growth to market indices, offering the potential for higher returns but also carrying stock market risk. This potential for higher growth in IUL can lead to faster cash value accumulation for income withdrawals or IUL loans but can lead to lower-than- expected growth during stock market downturns. Both types of insurance policy can be used for infinite banking, but Whole Life prioritises stability while IUL offers potentially faster growth but with greater variability.