Just like to say thank you for the easiest explanation of Universal Whole Life insurance policy. Had my policy for 15 years and had no clue of the COI. Seven years later and still helping people understand! Keep up the good work!!!
He's loud, but this is important to know. Other youtubers are talking about using Life Insurance as a tax-sheltered investment account, but none (4 different "professionals") mentioned this Lapse thing. Thank you. Very important to understand.
Glad I came across this video. Just got my life & health license and was planning on promoting UL policies to younger prospects for investment purposes. Was even thinking about getting one for myself, but really need to do more research!
You got tricked. If you don't know this when you are selling the thing, what have they taught you? Oh right, sales techniques and mind control. Term and whole life re all anyone needs unless they're really, really wealthy.
I'm shocked! As a new agent, I saw UL as the best of both worlds and the right way to go. I thought that if they paid the target premium (obviously not the minimum), the policy would be well funded. I definitely had no intention of leaving my clients with lapsed policies! Thank you for this information.
as a 20yr agent who only does term I haven't seen one that DOESN'T lapse lol.. the standard cash value agent response is "they were underfunded". Pretty big issue if EVERY policy being run across in the field is "under funded" wouldn't you say?
It is our pleasure. Good luck and remember that the purpose you serve in your clients' lives is only valuable if you put them first in every decision you make in your business.
@@GannonWealthSecurityPartners I have been seriously considering a life in finance simply because I'm sick of people saying they don't know enough about this stuff. I enjoy it and could pass the savings on to them! Great content.
Thanks for explaining UL. Im in the policies and rides chapter of my ad banker study book. Everything up until this chapter was fairly simple but now I think that I was making a mountain out of a mole hill.
so to make sure i understand this , if we were to take this policy we have to make sure the premium for earlier years will cover the preimum of later years ( unlike whole life insurance policy that takes care of that) on the other hand so what do they gain out of it?
There’s a few things you can get out of this, if the policy side account performs well you’ll get much more death benefit for premium paid versus Whole Life. This policy offers flexible premium so you can fund more premiums in one year and less in another, obviously this requires policy checkups to see how healthy the performance is. ULs also include GULs which strip out the cash value and guarantee death benefit as long premiums are paid. Hope this helps.
At 10:03 when you stated you just don't want anyone getting hurt, we need me agents like that. I have a question, do you think an overfund IUL, in particular, funded to the MEC limit, can it still lapse?
Absolutely. An overfunded IUL can still not perform up to what is needed in the side account to last throughout your entire lifetime depending on how long you live, how well the investments perform in the invested account, along with how the insurance carrier determines the cost of insurance as you get older.
@@GannonWealthSecurityPartners also in zero years the fees are still taken out resulted in a negative year. If the insurance company changes the cap rate it could take one years to recover. Depending on one's mortality table and a zero year with management fees taken out, one can take a hit to the cash value where it still make it really hard to recover those losses and eventually the policy can implode.
On top of the fact that most IUL’s have increasing death benefits which will raise the cost of insurance even more. You would have to progressively increase your premium payments to keep up, but even if you did that then 0% years would keep the account from compounding like it should.
The COI goes up every year because in very small increments at younger ages and as you get closer and closer to your mortality age, the COI is going to go up drastically. The COI is essentially the cost of a 1 Year Term Policy that renews each year.
This is very true to the IUL's constructed back in the 80's...we see clients come to us with underfunded policies all the time. Today's IUL's sold by the best carriers are much different in that they are heavily overfunded. Meaning, even at our worst financial or economic conditions they will continue to build value. Not all carriers are the same.
UL policies are better as they have gone through a few years ? someone told me that it's good to buy a UL and put in the maximum amount. Was told if that is done for about 15 years the policy should be good. Opinion ? Beginning at age 20 or 25.
Just wondering, would a UL policy "lapse" in the way that was explained in the video above even when we opt for "LCOI- Level Cost of Insurance" (instead of YRT)? I think that with LCOI, the UL policy would never lapse as long as one pays the regular premiums. Can you please clarify this for me?
is there a GUl that is flexible pay like 5 or 7 pays? and done paying premium? instead of monthly or annualy? will someone really be covered to the life they choode like 90, 95 or 100 years old. or is it ssfe to pay it annualy? or monthly?
If the "side account" performed well, it can possibly shoulder that COI and if it does more than "performed well" , it can pay the COI and THEN still grow the value of the side account. Thats a big "if" though. So a yearly policy review is really needed for the client to know whats happening and changing whether its the COI or the performance of the account and the chosen index. Some index perform better than others.
I got this insurance about 6 years ago and at time I knew nothing about insurance it self. I got same insurance for my daughter as well. What would you suggest I do to make sure I don’t lose money on this policy and my policy it self??
Pretty much. The longer the name the worse it is. All professional money manager say that you should never, ever bundle your life insurance policy with your savings accounts. You should always keep them separate. One of the main reasons is the surrender value. That simply means that whatever amount is in the side account the company keeps that money. Example: Life Insurance face value is 100K and in your side account you've accumulated say 50K after maybe some 20 years and you have never borrowed against it, your beneficiary should get 150K, right? Well, sorry. Your beneficiary ONLY gets the 100K. The company keeps the 50K in "your" "SAVINGS" account. So how much of that 100K did they really pay out to your beneficiary? Wholelife is bad but Universal Life is the worst. Term is what your should have. If you want a savings look into IRA, Roth IRA, Mutual Funds, 401k plans...
Can you share a similar cost structure of Whole Life Insurance? UL illustrations shows the cost ledger but whole life is like a black box and I am sure cost will be even higher.
As a senior retired broker I see insurance companies single out older customers with large poliies for extreme rate increases versus making increases on a class basis My other concern is the sale of mature annuities, at a premium, to investment groups who use the annuity value to make a profit at the expense of the annuitant. Policy owners should be given 60 days to transfer to another company when this happens
I have a question, after an agent or financial advisor signs you up in this kind of policy or an annuity, for how many yers they will be getting a commission?
Thanks so much for this great video brother, your the Man. Hey can you please make a video about agents saying about a whole. Life policy that if its well written it may pay the face amout + the cash value? I Dont think its right!!
Jose Zepeda I believe the CV is baked into the DB because if you took a loan on the CV it would be minus the DB at death anyway. Example: $100,000 Death benefit $80,000 cash value Took a $70,000 loan on the cv Died the next day DB would be $100,000 - $70,000 = $30,000 Because essentially when you take $100,000 DB out a WL policy already have a price on that with 1 payment. It’s just most people break it up into monthly payments, and the “overpayment” would be the side account until the policy is paid up... once the policy is paid up it’s just money sitting there until you die or take a loan out against it.
Thanks a lot for detailed explanation. I have few doubts if you can please help me on the same: 1. How its different from Unit Linked product? 2. Universal life has a fixed death benefit and separate cash value? So in d case of death, what is actual amount paid to policyholder 3. Does it also have maturity benefit? Or its alos for whole life?
Thank you so much GANNON WEALTH SECURITY PARTNERS. This is NOT the way my agent explained the policy to me. I asked for a permanent life insurance that I can just pay in 20 years, then after that, I will be insured until I die even after 20 years, I didn't know that there's a chance for them to ASK for more, otherwise, they will cancel. Thank you again!
No, but we can certainly plan on doing one in the near future for you. If you'd like to schedule a call, we can go over everything for you on a video conference. Perhaps we could even use that video conference as the video with your live questions! Let me know if we can help!
josh williams In my professional opinion, the benefits do not overcome the disadvantages to the policy. I’m not saying there couldn’t be exceptions, but in a majority of the cases these policies fail.
In addition to that, if you already accumulated FUND Balance , it is more unlikely you could withdraw cash value because of the huge Surrender Charges. That happened to me twice. If a client is a resident of canada, i advice to might as well buy term life insurance policy . It is much cheaper than UL and then invest in TFSA or buy RRSP.
Sebastian Loporto There isn’t a lot of situations where UL is best in my opinion. Term is the only way to go? That I don’t agree with quite as much, but certainly agree with the UL part of your comment. I think it is definitely oversold by agents looking to sell a dream rather than risk transfer.
Very nice presentation but it cracks me up you get this far and can't get yourself to just tell the rest of the truth about how cash value policies work.
you did not explain how it works, for instance, exactly how are premiums applied, how is the interest calculated, guaranteed vs non guarantee. this is not a beginners or everything to you need to know.
googleacount we are grateful for your feedback and will look into creating a more detailed video on terminology and more calculations on the inner workings of the policies. However, in our defense, it is difficult to appease each and every level of understanding while keeping the videos efficient enough to remain effective for our viewers. Thank you again for your feedback and your viewership.
ULs are worse than whole life. The fees/commissions eat up the cash value leaving the client to pay out of pocket costs to cover the term. Stay away from trash value insurance.
Technical note, you’re not speaking to a room full of people…… Your mic is only inches from your mouth. Speak to the mic. That will be plenty loud enough. Otherwise you’re actually driving people away from your presentation.
@@GannonWealthSecurityPartners he doesn't know he is dealing with a New York financial advisor....must be tough for him being at the tail end. I am guessing he does not know the part where raising the premium just enough to keep the tax collectors at bay during the first 7-10 years of a UL policy. Or maybe he is up there in the sky dealing with 2 million dollar policies with 6% nominal interest rate.
Just like to say thank you for the easiest explanation of Universal Whole Life insurance policy. Had my policy for 15 years and had no clue of the COI. Seven years later and still helping people understand! Keep up the good work!!!
He's loud, but this is important to know. Other youtubers are talking about using Life Insurance as a tax-sheltered investment account, but none (4 different "professionals") mentioned this Lapse thing. Thank you. Very important to understand.
Good teachers are the ones that change the world. Outstanding presentation
Thanks for the simple yet detailed explanation of the UL Policy.
Glad I came across this video. Just got my life & health license and was planning on promoting UL policies to younger prospects for investment purposes. Was even thinking about getting one for myself, but really need to do more research!
You got tricked. If you don't know this when you are selling the thing, what have they taught you? Oh right, sales techniques and mind control.
Term and whole life re all anyone needs unless they're really, really wealthy.
I'm shocked! As a new agent, I saw UL as the best of both worlds and the right way to go. I thought that if they paid the target premium (obviously not the minimum), the policy would be well funded. I definitely had no intention of leaving my clients with lapsed policies!
Thank you for this information.
Same
Same
as a 20yr agent who only does term I haven't seen one that DOESN'T lapse lol.. the standard cash value agent response is "they were underfunded". Pretty big issue if EVERY policy being run across in the field is "under funded" wouldn't you say?
Great video! Some key points were highlighted that I hadn't heard anyone else discuss. Thank you!
Very well explained. Thanks for the information.
The best i've listened of all related videos
This was an awesome explanation. Thank you so much!
I'm new to the insurance field but this was very helpful. Thank you so much for sharing this!!
Thank you for this breakdown. I will make sure to steer clear of universal life
you can also get a UL which has a level COI thru out the life
Very informative and easy to understand. Will pass video to person asking what kind of policy is this. Thanks!
Great explanation! Every detailed yet very simple.
A+ on explanation I am getting licensed now to sell Insurance Thanks a Ton!
It is our pleasure. Good luck and remember that the purpose you serve in your clients' lives is only valuable if you put them first in every decision you make in your business.
That is why I wanted to get into it to serve Others ! Thank You again for everything !
@@GannonWealthSecurityPartners I have been seriously considering a life in finance simply because I'm sick of people saying they don't know enough about this stuff. I enjoy it and could pass the savings on to them! Great content.
Clean and clear explanation! Awesome job!
I have a doubt as in why would I purchase this policy if at the end it seems like I would loose money in it.?
Thank you for such wonderful and valuable information!!
Thanks for explaining UL. Im in the policies and rides chapter of my ad banker study book. Everything up until this chapter was fairly simple but now I think that I was making a mountain out of a mole hill.
Thank you very much! This was an excellent breakdown
so to make sure i understand this , if we were to take this policy we have to make sure the premium for earlier years will cover the preimum of later years ( unlike whole life insurance policy that takes care of that) on the other hand so what do they gain out of it?
There’s a few things you can get out of this, if the policy side account performs well you’ll get much more death benefit for premium paid versus Whole Life. This policy offers flexible premium so you can fund more premiums in one year and less in another, obviously this requires policy checkups to see how healthy the performance is. ULs also include GULs which strip out the cash value and guarantee death benefit as long premiums are paid. Hope this helps.
So what is the difference between whole and ul if I would like to borrow from it before I die?
At 10:03 when you stated you just don't want anyone getting hurt, we need me agents like that.
I have a question, do you think an overfund IUL, in particular, funded to the MEC limit, can it still lapse?
Absolutely. An overfunded IUL can still not perform up to what is needed in the side account to last throughout your entire lifetime depending on how long you live, how well the investments perform in the invested account, along with how the insurance carrier determines the cost of insurance as you get older.
@@GannonWealthSecurityPartners also in zero years the fees are still taken out resulted in a negative year. If the insurance company changes the cap rate it could take one years to recover. Depending on one's mortality table and a zero year with management fees taken out, one can take a hit to the cash value where it still make it really hard to recover those losses and eventually the policy can implode.
On top of the fact that most IUL’s have increasing death benefits which will raise the cost of insurance even more. You would have to progressively increase your premium payments to keep up, but even if you did that then 0% years would keep the account from compounding like it should.
Now I understand UL
So how do banks use this policy to get more money?
Thank you very much for your explanations. Made me understand more! 👍❤️
very informative video. thank you
Not to mention the raising DB would make the COI go up faster or maybe that’s why the COI goes up in the first place. Any clarification on that?
The COI goes up every year because in very small increments at younger ages and as you get closer and closer to your mortality age, the COI is going to go up drastically. The COI is essentially the cost of a 1 Year Term Policy that renews each year.
This is very true to the IUL's constructed back in the 80's...we see clients come to us with underfunded policies all the time. Today's IUL's sold by the best carriers are much different in that they are heavily overfunded. Meaning, even at our worst financial or economic conditions they will continue to build value. Not all carriers are the same.
UL policies are better as they have gone through a few years ? someone told me that it's good to buy a UL and put in the maximum amount. Was told if that is done for about 15 years the policy should be good. Opinion ? Beginning at age 20 or 25.
IULs are garbage with their high fees/commissions and capped gains. Stay away from all trash value insurance.
Just wondering, would a UL policy "lapse" in the way that was explained in the video above even when we opt for "LCOI- Level Cost of Insurance" (instead of YRT)? I think that with LCOI, the UL policy would never lapse as long as one pays the regular premiums. Can you please clarify this for me?
Thank you Brother! Great video!
is there a GUl that is flexible pay like 5 or 7 pays? and done paying premium? instead of monthly or annualy? will someone really be covered to the life they choode like 90, 95 or 100 years old. or is it ssfe to pay it annualy? or monthly?
editha Yes there are many payment options
If the "side account" performed well, it can possibly shoulder that COI and if it does more than "performed well" , it can pay the COI and THEN still grow the value of the side account. Thats a big "if" though.
So a yearly policy review is really needed for the client to know whats happening and changing whether its the COI or the performance of the account and the chosen index. Some index perform better than others.
The cash value NEVER ends up covering the death benefit. You will eventually have to pay out of pocket to cover the ever increasing term.
I got this insurance about 6 years ago and at time I knew nothing about insurance it self. I got same insurance for my daughter as well. What would you suggest I do to make sure I don’t lose money on this policy and my policy it self??
Hi, can someone help me and let me know. Where can I find “Side Account” information in my annual statement. Thank you 🙏
Look at your cash value on your statement.
Great Video my friend
Very clear explanation. Thanks.
Is this the same thing as an Indexed Universal Life (IUL)?
Pretty much. The longer the name the worse it is. All professional money manager say that you should never, ever bundle your life insurance policy with your savings accounts. You should always keep them separate. One of the main reasons is the surrender value. That simply means that whatever amount is in the side account the company keeps that money. Example: Life Insurance face value is 100K and in your side account you've accumulated say 50K after maybe some 20 years and you have never borrowed against it, your beneficiary should get 150K, right? Well, sorry. Your beneficiary ONLY gets the 100K. The company keeps the 50K in "your" "SAVINGS" account. So how much of that 100K did they really pay out to your beneficiary? Wholelife is bad but Universal Life is the worst. Term is what your should have. If you want a savings look into IRA, Roth IRA, Mutual Funds, 401k plans...
@@MrClaudiorgomez Not 100% accurate. The surrender value is for the first 10-15 years on a IUL and then it's done.
Can you share a similar cost structure of Whole Life Insurance? UL illustrations shows the cost ledger but whole life is like a black box and I am sure cost will be even higher.
Could you please tell me what is “waiver”?
Are there ULs with a fixed/level premium?
Hello..loved the explanation...And just in time...Can you do a review on my coverage?
As a senior retired broker I see insurance companies single out older customers with large poliies for extreme rate increases versus making increases on a class basis My other concern is the sale of mature annuities, at a premium, to investment groups who use the annuity value to make a profit at the expense of the annuitant. Policy owners should be given 60 days to transfer to another company when this happens
Thanks for the information.
How do I contact you?
What if I dump 700k into the policy? I’m 37 btw. I’m selling my business and have been hearing about infinite banking. How does this work exactly?
I have a question, after an agent or financial advisor signs you up in this kind of policy or an annuity, for how many yers they will be getting a commission?
Thanks so much for this great video brother, your the Man. Hey can you please make a video about agents saying about a whole. Life policy that if its well written it may pay the face amout + the cash value? I Dont think its right!!
Jose Zepeda I believe the CV is baked into the DB because if you took a loan on the CV it would be minus the DB at death anyway.
Example:
$100,000 Death benefit
$80,000 cash value
Took a $70,000 loan on the cv
Died the next day
DB would be $100,000 - $70,000 = $30,000
Because essentially when you take $100,000 DB out a WL policy already have a price on that with 1 payment. It’s just most people break it up into monthly payments, and the “overpayment” would be the side account until the policy is paid up... once the policy is paid up it’s just money sitting there until you die or take a loan out against it.
There are policies designed to pay face and cash value.
great video - very clear
Erica Manni thank you!!
Can u explain about interest sensitive life product
thank you
I was enlightened
Thanks a lot for detailed explanation. I have few doubts if you can please help me on the same:
1. How its different from Unit Linked product?
2. Universal life has a fixed death benefit and separate cash value? So in d case of death, what is actual amount paid to policyholder
3. Does it also have maturity benefit? Or its alos for whole life?
Thank you so much GANNON WEALTH SECURITY PARTNERS. This is NOT the way my agent explained the policy to me. I asked for a permanent life insurance that I can just pay in 20 years, then after that, I will be insured until I die even after 20 years, I didn't know that there's a chance for them to ASK for more, otherwise, they will cancel. Thank you again!
is there a video on Guarantee no lapse Universal Life? I've seen the whole life video, but need to know the differences on the GUL
No, but we can certainly plan on doing one in the near future for you. If you'd like to schedule a call, we can go over everything for you on a video conference. Perhaps we could even use that video conference as the video with your live questions! Let me know if we can help!
What about Index Universal Life?
RUN!!!!!!
Questions..!!!!! ??? So what is the benefit of this policy.?? If it seems like this policy will eat itself.?
Why didn’t you talk about the benefit of the policy?
josh williams In my professional opinion, the benefits do not overcome the disadvantages to the policy. I’m not saying there couldn’t be exceptions, but in a majority of the cases these policies fail.
In addition to that, if you already accumulated FUND Balance , it is more unlikely you could withdraw cash value because of the huge Surrender Charges. That happened to me twice. If a client is a resident of canada, i advice to might as well buy term life insurance policy . It is much cheaper than UL and then invest in TFSA or buy RRSP.
great video. p;ls make more
Great job bro. .
Please help me in life insurance
Pretty good explanation...but garbage would never sell this. Term is the only way to go.
Sebastian Loporto There isn’t a lot of situations where UL is best in my opinion. Term is the only way to go? That I don’t agree with quite as much, but certainly agree with the UL part of your comment. I think it is definitely oversold by agents looking to sell a dream rather than risk transfer.
IUL has the same problem. It's absurd to keep the same level of life insurance coverage in old age, when you have much more assets.
Yes it does because it’s still a UL policy just indexed.
Very nice presentation but it cracks me up you get this far and can't get yourself to just tell the rest of the truth about how cash value policies work.
I’m sorry but I’m not sure which part you’re referring to.
you did not explain how it works, for instance, exactly how are premiums applied, how is the interest calculated, guaranteed vs non guarantee. this is not a beginners or everything to you need to know.
googleacount we are grateful for your feedback and will look into creating a more detailed video on terminology and more calculations on the inner workings of the policies. However, in our defense, it is difficult to appease each and every level of understanding while keeping the videos efficient enough to remain effective for our viewers. Thank you again for your feedback and your viewership.
Thank you and I look forward to those videos. I have subscribed.
09:38 is not entirely correct. Universal Life policies do have termination dates. (typically age 95, 100, 120, 121)
ULs are worse than whole life. The fees/commissions eat up the cash value leaving the client to pay out of pocket costs to cover the term. Stay away from trash value insurance.
“It may be” can i trust your advice? You don’t credible saying “it may be” 4:13
It's basically just a way for everyone else to get your money and you get jack squat.
great great great
To all naysayers, Never do one if you are not going to fund it to the MEC line and always use type 1 death benefit. You are welcome.
I see nothing good about UL. This is a buyer beware product.
Do a video on erection insurance, so that way I know when I’m older I’ll be covered😎😎😎😎
🤦🏽♂️🤦🏽♂️🤦🏽♂️🤦🏽♂️🤦🏽♂️🤦🏽♂️🤦🏽♂️🤦🏽♂️🤦🏽♂️🤦🏽♂️🤦🏽♂️🤦🏽♂️😶
Good job my agent tried to screw me with this
THIS IN USA? not all providers are the same folks.... so better talk to your advisor
Insurance is a scam
Technical note, you’re not speaking to a room full of people…… Your mic is only inches from your mouth. Speak to the mic. That will be plenty loud enough. Otherwise you’re actually driving people away from your presentation.
1/2 way right, And 1/2 completely wrong!
Hipolito Quiroz Can you tell us what you disagree with?
@@GannonWealthSecurityPartners he doesn't know he is dealing with a New York financial advisor....must be tough for him being at the tail end. I am guessing he does not know the part where raising the premium just enough to keep the tax collectors at bay during the first 7-10 years of a UL policy. Or maybe he is up there in the sky dealing with 2 million dollar policies with 6% nominal interest rate.