The short answer is yes. IUL insurance costs are considerably higher than term insurance. The comparison, however, should not be made between the cost of term insurance and the cost of maintaining the IUL death benefit. The comparison should be made between the cost of the insurance component of the IUL versus the myriad of taxes and fees that traditional stock market investments will include. Insurance costs on an IUL policy are absolutely considerable, especially in the first few years that one holds the policy. The IUL is being used for long term gains, and over time the insurance costs associated with an IUL policy will be far less than fees charged by advisors or loads required by some mutual funds. In addition the growth and access to the cash value of an IUL is completely tax free. The savings on taxes alone completely neutralizes the fees required for the benefit of the policy.