How Stories Sell IUL Better Than Spreadsheets
Most clients have no idea how much they truly need to retire comfortably. Using the power of four simple stories gives a better way to reach clients and help them understand the benefits to their long-term retirement goals.
When it comes to selling Indexed Universal Life (IUL), product specs and spreadsheets alone don’t inspire action. What does? Stories. In a recent training session, veteran life insurance expert Joe Ross delivered a masterclass in narrative-based sales, offering four proven storytelling frameworks that turn abstract concepts into emotional, memorable, and motivating reasons to buy. Here’s how you can use each story to help high-income clients see IUL as a compelling tool for retirement planning.
1. The Rule of 25: Showing the Real Retirement Gap
Most clients have no idea how much they truly need to retire comfortably. Joe starts with a simple but powerful concept: The Rule of 25. If a client wants $200K/year in retirement income, they’ll need $5 million saved ($200K x 25). It’s based on reversing the well-known 4% withdrawal rule.
This story lands when you say: “If you want $X per year in retirement, multiply it by 25.” Most high-income earners are shocked to find their current path won’t get them there, even with maxed-out 401(k)s. This opens the door to alternatives like IUL.
2. The $5, $10, $20 Story: Reframing the Tax Conversation
How do you want to be taxed?
That’s the heart of Joe’s second story, which simplifies the retirement equation to three numbers: $5 in, $10 grown, $20 out.
Then you ask: Which number would you rather pay taxes on? Clients always circle $5. But then you reveal: in traditional plans like 401(k)s, they’re actually being taxed on the $20, the worst-case scenario.
The only place where you can pay tax on the $5, and enjoy tax-free growth and distribution? Life insurance. It’s a visceral shift in perspective that makes the value of IUL tangible.
3. The True Cost of Life Insurance: Less Than You Think
Objections about cost often stem from misinformation. Joe Ross flips the script with a story that compares the internal rate of return (IRR) of an IUL policy against taxable investment accounts.
Using conservative assumptions (6.65% gross return), Joe shows that after policy charges, an IUL still delivers an IRR of 5.98%. That’s a cost of just 0.67% less than taxes and asset management fees in a typical brokerage account.
For clients concerned about cost, this data-backed story reframes life insurance as not only viable, but more efficient.
4. How Much Should I Save? A Simple Formula
Once clients are convinced IUL makes sense, the next question is: how much should I fund it with?
Joe offers a clear rule of thumb: 15% of annual income. Subtract current retirement savings (like 401(k) contributions), and the remainder is what can be directed into IUL.
For a client earning $300K/year and putting $23K into a 401(k), the target IUL premium would be $22K/year or roughly $2K/month. It's actionable, customized, and scalable.
Final Takeaway: It’s Not the Product. It’s the Story.
Joe Ross’s approach is a reminder that sales success doesn’t hinge on technical illustrations, but on helping clients visualize their financial future. These four stories provide the emotional clarity clients need to act. Master them, and you'll turn skepticism into belief and interest into implementation.
