IUL AG 49 Illustration Regulations AG49-A, AG49-B, Soon AG49-C
- LIR TEAM
- Sep 13
- 3 min read
When it comes to Indexed Universal Life (IUL) policies, the difference between what you are sold and what you actually get can be staggering. Since their introduction in 1997, IUL policies have been aggressively marketed as both cash value accumulation vehicles and death benefit protection vehicles. But beneath the polished illustrations presented by agents, brokers, and financial advisors lies a long history of misleading practices—a problem so significant that state insurance regulators have repeatedly tightened the rules, yet insurers continue to find new ways to make their IUL products illustrate attractively on paper, even when reality tells a different story.”
That’s why getting a second independent opinion is not optional—it’s essential. Whether you are being sold an IUL policy today or you already own one that’s more than two years old, you should have it reviewed to make sure it’s performing anywhere near what was originally illustrated or promised by the salesperson.
The Evolution of IUL AG 49 Illustration Regulations
To curb illustration abuse, regulators have introduced Actuarial Guideline 49 (AG 49) and its successors:
AG 49 (2015): The original attempt to rein in overly aggressive IUL projections, with many using 10%+ interest rates.
AG 49-A (2020): A revised rule to close loopholes around bonus multipliers and other design gimmicks.
AG 49-B (2023): Adopted to address volatility-controlled indices and fixed bonus structures.
AG 49-C (Coming Soon): Already being discussed to stop misleading use of back-testing data with current assumption rates.
State regulators themselves admit insurers are “undermining” the intent of these rules. Each time a loophole is closed, carriers innovate new IUL product features that once can mislead consumers.
The Hard Truth About IUL Performance
At LifeInsuranceReview.com (LIR), we’ve conducted thousands of IUL policy reviews, and here’s what the evidence shows:
Not a single IUL policy older than seven years has outperformed its original illustration.
Most cash value accumulation policies fall significantly short of their illustrated projections.
Consumers typically have no idea that their policy is underperforming until it’s too late—unless they proactively review.
This isn’t about proving whether your agent did a “good job” or whether your policy is inherently “bad.” It’s about ensuring you clearly understand what you were sold, what you own, and whether it aligns with your financial goals—not what the salesperson told you.
Why You Need a Second Independent Opinion
Independent reviews are not about selling you another product—they’re about protecting your financial future.Professionals like CPAs, estate-planning attorneys, and fee-only fiduciary advisors regularly refer clients to us because they know that life insurance illustrations often paint a misleading picture.
When you request a Life Insurance Review:
We compare your original illustration vs. actual performance/inforce illustration
We identify risks such as policy lapses, insufficient cash value growth, or unrealistic death benefit projections.
We give you an unbiased, clear understanding so you can make informed decisions.
FAQs About IUL AG 49 Regulations and Reviews
1. What is AG 49 in life insurance?
AG 49 is a regulatory guideline introduced in 2015 to standardize how insurance companies illustrate Indexed Universal Life (IUL) policy performance. It aimed to prevent overly optimistic projections but has been repeatedly updated due to ongoing abuses.
2. Why were AG 49-A and AG 49-B introduced?
AG 49-A (2020) was created to close loopholes around bonus multipliers. AG 49-B (2023) further restricted illustrations involving volatility-controlled indices and fixed bonus designs. Both were necessary because insurers kept finding ways to game the system.
3. What is AG 49-C and why is it needed?
AG 49-C, now being discussed, aims to stop the misleading practice of using historical back-testing with current assumption rates and participation percentages, which make policies appear more profitable than they are likely to be.
4. If I already own an IUL, do I need a review?
Yes—especially if your policy is more than two years old. Our experience shows most IULs fail to match their original projections within just a few years. Without a review, you could face reduced cash value, higher costs, or even policy lapse down the road.
5. Who should I trust for a second opinion?
Seek out a licensed independent analyst—not another salesperson. At LifeInsuranceReview.com (LIR), we specialize in objective reviews using our 28-Point Checklist to ensure you know exactly how your policy is performing.
The Bottom Line
The evolution of IUL AG49 Illustration Regulations from AG 49 to AG-49A, AG 49-B and soon AG 49-C proves one thing: illustration rules keep changing because insurers keep pushing the limits. Don’t let your financial future be dictated by marketing tricks and unrealistic projections.
Whether you’re being pitched a new IUL or already own one, now is the time to get a second independent opinion. Your family, your finances, and your peace of mind deserve nothing less.
