Is the main reason agents pick the 40/60 is to avoid the mec? Also, when they talk about taking out a policy loan, they always talk about paying a higher interest rate. Is that because the extra payments buys more cash value thru pua and there is enough cushion to avoid a mec? I don't quite understand that part of their presentation. I do know alot of nelson nash disciples set up as a 40/60. Thanks for clearing this up. Another youtuber mentions the hecv policy and lower commissions. Left out the residual part though. Thanks for the transparency.
Thanks for the comment. We have heard that agents prefer higher base premiums (40/60) because they feel it has less risk of triggering a MEC. We disagree with this as the MEC testing is tied to the total death benefit, not the base premium. Regarding the "extra payments." These are additional PUA payments that can be added to a policy if we have MEC space and the company will accept them. I've included a video that provides a demonstration around this point. - th-cam.com/video/ocD-SOCbY6Q/w-d-xo.html
The broker gets paid the first year's payment as their commission. The first one. It's all starting to make sense. WE'RE supposed to become Life Insurance Brokers! 🤯🦧🤦♂️
@@maxpruger837No not necessarily, the 40/60 gives more efficient growth over the long run generally, and the 10/90 you see more cash value in the early years. Many variables to consider
I don't have a problem with an agents making great commissions. When an agent discloses the "secret" things, I'm more inclined to trust him or her that they will put a product together with my best interests in mind.
10:00 term rider 11:30 26:30 31:30
Thank you for the great content
Thank you!
Awesome!
Is a 60/40 a good policy distribution?
Is the main reason agents pick the 40/60 is to avoid the mec? Also, when they talk about taking out a policy loan, they always talk about paying a higher interest rate. Is that because the extra payments buys more cash value thru pua and there is enough cushion to avoid a mec? I don't quite understand that part of their presentation.
I do know alot of nelson nash disciples set up as a 40/60. Thanks for clearing this up. Another youtuber mentions the hecv policy and lower commissions. Left out the residual part though. Thanks for the transparency.
Thanks for the comment. We have heard that agents prefer higher base premiums (40/60) because they feel it has less risk of triggering a MEC. We disagree with this as the MEC testing is tied to the total death benefit, not the base premium.
Regarding the "extra payments." These are additional PUA payments that can be added to a policy if we have MEC space and the company will accept them. I've included a video that provides a demonstration around this point.
- th-cam.com/video/ocD-SOCbY6Q/w-d-xo.html
As far as I can tell, the "main" reason is that they like higher commissions.
The broker gets paid the first year's payment as their commission. The first one. It's all starting to make sense. WE'RE supposed to become Life Insurance Brokers! 🤯🦧🤦♂️
@@Simonjose7258 Did you get to watch the whole video? The products that deliver higher cash value pay lower commissions.
@@maxpruger837No not necessarily, the 40/60 gives more efficient growth over the long run generally, and the 10/90 you see more cash value in the early years. Many variables to consider
Looks like someone got a new toy 😀
This will not make other agents happy. Great video.
Thanks Max!
I don't have a problem with an agents making great commissions. When an agent discloses the "secret" things, I'm more inclined to trust him or her that they will put a product together with my best interests in mind.