Wow, very helpful breakdown. In order to recommend and IUL policy with a particular company I need ALL the information. I have been on an IUL journey to understand the mechanisms of the different crediting options, cost of insurance, structures of the policy to HELP, not sell, a client into making the best choice for their needs. However, my head is spinning because of all the moving parts. Thank you for the content it was very helpful.
But Caleb correct me if I’m wrong … Chris said you can lose your money …. But you can only lose the 4% interest earned … not the premium put in if you set it up that way … he only looks at the bad but there are variables not mentioned that could counter that
Oh Chris, you crack me up. Your lack of transparency is comical. You mention the IUL challenge, yet dont explain how 99% of insurance agents are excluded... 10 years original illustration with inforce... lets look how many agents have actually been around 10 years... Your beef should be with MISREPRESENTING IUL vs the product itself. You talk about how caps come down, but NO MENTION of how Whole Life which you push so hard, their dividends have come down ENORMOUSLY as well. went from from showing 8-9% dividends down to 5.5%. Show ME an illustration of a whole life beating out its original illustration from 10 years ago... You also dont mention how you can CONTROL NET RISK in an Universal Life Chassis, yet cant in a whole life. Show me an illustration with ALL transparency of fees and costs and lets run a fair comparison. IUL When properly funded and structured will out perform WHole Life 90% of the time. Any time you'd like to have a live recorded debate, let me know. Calling you an IUL Hater is an understatement, you should really stop blaming the product and point out the OBVIOUS which is HORRIBLE Agents.
Yes indeed he doesn't say anything about it on WL interest goes down too This guy is a hater why does he hate IUL'S so much did have a bad experience. It's funny how people talk bad about a produc to promte their product and talk bad about a person to build themselves up
Can i ask though. If you do a max funded iul and even if your earning 7% conservative over 20 years and you build cash vslue, isn’t the benefit to be able to the $ tax free with still having a death benefit? As long as it’s structured non mec?
Best video so far! Would love to see an even more detailed video of this elaborating on how bad these IUL policies could get. Would also like to see a video illustrating the reality of taking loans on a whole life policy, not paying it back as it compounds against you vs what the dividends pay out. Do they always outpace the loans, can you refinance, can you lose money like that or is there practically a guaranteed arbitrage or at least a zero wash? I understand Whole life is less risky but with low returns of 4% or less (plus negative return in the first few years because of costs of insurance and slightly limited access to a certain percentage of funds. I’m not understanding how they outpace inflation or how someone can retire take out policy loans at let’s say 5% when there earning less. That seems like a lever either policy has, they can decide what interest rate you get the loan for and you have to take it or withdraw the money and pay taxes while reducing the amount in the policy.
Can whole life imcrease their fees at any time? What about max funded IULs with no mec? Even hating IULs what would you say would be the best structure for one ideally, if that was the only choice you had?
This has been an old age argument in the battle of (Buy Term Invest the Difference) vs (Whole Life Insurance). What it comes down to is you can take a guaranteed 3% to 4%. Set and forget it. Or get into IUL. If we are not explaining the diff.. that is where the rub is..
Man, I was worried there for a second thinking you jumped on IUL, but then I listened to the first few minutes!! ha Right on! I try to spread the word about IUL all the time, especially those who try to run it in an Infinite Banking kind of way. So many red flags and can be so harmful to people who don't understand how these work. Thanks for spreading the word!
@@LIFE180 hey brother, I sure will... I'll send people to it. Seems not a day goes by where someone isn't pitching IUL in my network (or they are in one thinking it's the same as a properly structured whole life, lol).
@@LIFE180 show me a whole life thats out performed its original illustration... its basic economics, as we enter a low interest environment, obviously general funds go down ... less options budget... less dividends... Cant wait to see how you have to backtrack on all your statements now we are entering an increasing interest rate environment.
Great explanation, but for an argument sake lets if we have iul product with no CAP Rates (uncapped), 200% Participation Rate with 125% guaranteed . And no spread rates. Will WL still be a better product?
I lean towards whole life but in some special cases, IUL can work for people depending on their goals and who designs it. I have two videos dropping soon with IUL agents doing things correctly to the best of my understanding. I'd encourage you to be on the lookout for those videos as I think you'll find them very helpful!
It is all on how it is structured AND the Agent being a fiduciary for you and not caring about his commission. I have seen IULs structured with the max funded like Doug Andrew talks about but doesn't participate in the markets and acts more like a WL.
8:54 I was looking at one of my WL policies since the anniversary just passed, and it was a few thousand more than the non-guaranteed illustration... this was 7 years in, so it was a policy written in 2015.
Great Video. Though you are caught up op the "advertised/criminal", part of the IUL Illustration is the historical value, mentioned on the document. Agents should explain that. Can't blame the carrier for it. I always explain it. Also, I am not against WL but WL also becomes too expensive for clients plus the Accelerated benefits need to be purchased at an additional price. You can participate on a monthly or annual basis etc. They both have their pros and cons; client's decision at the end of the day. Infact, WL would be best for me when it comes to compensation :) - I love to sell any/all life products between Term, WL, and IUL.
Thanks for commenting and watching Darley! Our main opinion is that for the majority of people it's not a good fit, especially with the way it's sold. I do know that it can work for some people though. Chris Kirkpatrick from LIFE180 (my guest on the video) has a lot of resources and content on IUL's and would be a really good place to get more of the info you're looking for :)
Indexed Universal Life Training: th-cam.com/play/PLrRnvQl4pMjjMjEBtUVEJU_cwCZKtEvE1.html That's a good training Playlist for IUL so you really understand the ins and outs of how they work.
What does the guarantee insurance use to make its Gains? My dad is in guaranteed insurance i think whole life. I am trying to figure this out for him because he has no idea just trust the insurance salesmans speal.
You can just adjust the policy to make it act more like a WL policy if the company gives the flexibility. It is all on how it was structured so best thing to do is to get with an agent that can do an audit of your IUL. Give you advice as a fiduciary And helps you make changes with the current policy company. UNLESS the best course of action is to cancel the policy which most time would not be the best option due to surrender charges that may show up
I'll just invest $3k a month and take a loan any time I want and use the stock as collateral and not get scammed by insurance companies and agents making $500k a year. They are getting that money from someone. You. At the end of $20 years using average returns, I'll have $1.2 million. Use it as collateral for more loans and Never Pay capital gains tax and leave it in my will and use the step up in basis to minimize their tax burden.
Dear LORD! I had NO idea this existed! I am on disability. I have $28k in the bank. Should I invent into this!? I have a bachelors degree and they NEVER taught us this! And it was in Business! Im soooo pissed off! Please help me!
@@theforce5191some people have dependents who live off of their income and will leave the family struggle if they die. Term life serves exactly what it’s supposed to do at low cost for the duration of time that the dependents may need support from this income. That’s why it’s called insurance not investment
The problem is that risk of loss if it goes down. The IUL eliminates that by giving security of the zero floor. It's much harder to come back from a loss then just starting where left off. If market goes down in the red 25% it needs to come up roughly 33% to break even. That can take 2-4 years worth of time unless we get a "loss decade" situation. All the while the IUL will be in the green the entire time. That being said. The IUL is for Safety, Security, Flexibility, and ease of Access. It is a SAVINGS vehicle NOT an Investment vehicle
@@jordanperrault5039 Yes, IUL has zero floor security guarantee but also comes with a hefty administration fee(s). Even at 0 risk, you still have to pay out the administration fee annually. That the fix cost regardless. Besides, I don't believe IUL can out perform the fortune 500 index.
What is bad making 52% realized gains? Many people have assets in 401k and they have no control of what the market does. Iul the 52% gain will not be lost.
@vangustia Chris does say iul Anaya looks great on paper. So ofcourse the math will check out. He does have an iul challenge, so if you can prove him wrong, I think he's offering 2k.
Hey! Producer here! This video was cut from a longer conversation on multiple topics. We cut out anything unrelated to this topic itself. Always aiming to improve our content though so we’ll aim to keep improving the flow!
Create a business that does what an insurance company does and you’ll have all the control. Can you make money on option calls in index and manage it with intention to pay out a lifetime income at age 65 tax Defferred No you can’t that’s there business and they get paid to do it Dumb video DYOR
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Thanks for having me on! Always tons of fun hanging and making some educational content with you, Caleb!
It’s so much fun! Can’t wait for our next filming session 🙏
Wow, very helpful breakdown. In order to recommend and IUL policy with a particular company I need ALL the information. I have been on an IUL journey to understand the mechanisms of the different crediting options, cost of insurance, structures of the policy to HELP, not sell, a client into making the best choice for their needs. However, my head is spinning because of all the moving parts. Thank you for the content it was very helpful.
This is one of the best explanations of the IUL vs WL discussion. Comprehensive and thorough. Thank you. :)
But Caleb correct me if I’m wrong … Chris said you can lose your money …. But you can only lose the 4% interest earned … not the premium put in if you set it up that way … he only looks at the bad but there are variables not mentioned that could counter that
Chris I have been with the company you worked for since 2008 and never heard of you as head of biz dev.
They sued him
Oh Chris, you crack me up. Your lack of transparency is comical. You mention the IUL challenge, yet dont explain how 99% of insurance agents are excluded... 10 years original illustration with inforce... lets look how many agents have actually been around 10 years... Your beef should be with MISREPRESENTING IUL vs the product itself. You talk about how caps come down, but NO MENTION of how Whole Life which you push so hard, their dividends have come down ENORMOUSLY as well. went from from showing 8-9% dividends down to 5.5%. Show ME an illustration of a whole life beating out its original illustration from 10 years ago... You also dont mention how you can CONTROL NET RISK in an Universal Life Chassis, yet cant in a whole life. Show me an illustration with ALL transparency of fees and costs and lets run a fair comparison. IUL When properly funded and structured will out perform WHole Life 90% of the time. Any time you'd like to have a live recorded debate, let me know. Calling you an IUL Hater is an understatement, you should really stop blaming the product and point out the OBVIOUS which is HORRIBLE Agents.
Yes indeed he doesn't say anything about it on WL interest goes down too This guy is a hater why does he hate IUL'S so much did have a bad experience. It's funny how people talk bad about a produc to promte their product and talk bad about a person to build themselves up
theres a strong bias with chris and whole life.....
IUL doesn’t work. Watch the most recent debate. iUL only for the ultra wealthy
Can you explain to me how you can control net risk with IUL and not WL?
Provided that both of the policies are well structured?
Thank you.
Is this video based on max funding an indexed IUL or just paying the regular premium?
Can i ask though. If you do a max funded iul and even if your earning 7% conservative over 20 years and you build cash vslue, isn’t the benefit to be able to the $ tax free with still having a death benefit? As long as it’s structured non mec?
Yes, this!
It will likely perform at 4.5%
Best video so far! Would love to see an even more detailed video of this elaborating on how bad these IUL policies could get.
Would also like to see a video illustrating the reality of taking loans on a whole life policy, not paying it back as it compounds against you vs what the dividends pay out. Do they always outpace the loans, can you refinance, can you lose money like that or is there practically a guaranteed arbitrage or at least a zero wash? I understand Whole life is less risky but with low returns of 4% or less (plus negative return in the first few years because of costs of insurance and slightly limited access to a certain percentage of funds. I’m not understanding how they outpace inflation or how someone can retire take out policy loans at let’s say 5% when there earning less. That seems like a lever either policy has, they can decide what interest rate you get the loan for and you have to take it or withdraw the money and pay taxes while reducing the amount in the policy.
Thissssss issss the videoooooooo!!! I was looking for a down to earth explanation of the two for hours now.
Glad it was so helpful!
Do you have a new version?
Can whole life imcrease their fees at any time?
What about max funded IULs with no mec?
Even hating IULs what would you say would be the best structure for one ideally, if that was the only choice you had?
This has been an old age argument in the battle of (Buy Term Invest the Difference) vs (Whole Life Insurance). What it comes down to is you can take a guaranteed 3% to 4%. Set and forget it. Or get into IUL. If we are not explaining the diff.. that is where the rub is..
Man, I was worried there for a second thinking you jumped on IUL, but then I listened to the first few minutes!! ha Right on! I try to spread the word about IUL all the time, especially those who try to run it in an Infinite Banking kind of way. So many red flags and can be so harmful to people who don't understand how these work. Thanks for spreading the word!
Bottom line authenticity and truth should be what everyone preaches in this space!
Amen. @Bankonomics check out the #IULchallenge
@@LIFE180 hey brother, I sure will... I'll send people to it. Seems not a day goes by where someone isn't pitching IUL in my network (or they are in one thinking it's the same as a properly structured whole life, lol).
@@BetterWealth I love it. So true! Would love to chat sometime.
@@LIFE180 show me a whole life thats out performed its original illustration... its basic economics, as we enter a low interest environment, obviously general funds go down ... less options budget... less dividends... Cant wait to see how you have to backtrack on all your statements now we are entering an increasing interest rate environment.
Great explanation, but for an argument sake lets if we have iul product with no CAP Rates (uncapped), 200% Participation Rate with 125% guaranteed . And no spread rates.
Will WL still be a better product?
Did you not see the video that nothing is guaranteed, so even if he had that, they could change it!
what type of screen is that one ... love it
What's the different between UL and IUL ???
This is a couple years old - are you not a fan of IUL? Been trying to learn more about it.
I lean towards whole life but in some special cases, IUL can work for people depending on their goals and who designs it. I have two videos dropping soon with IUL agents doing things correctly to the best of my understanding. I'd encourage you to be on the lookout for those videos as I think you'll find them very helpful!
If the fixed costs are so awesome in wl policy, why don't they show it as a positive? Love the spin.
This is the besssssst video breakdown I’ve seen so far. Great job guys. I was ready to jump into Douglas andrew product…. But very hesitant now !!!!
It is all on how it is structured AND the Agent being a fiduciary for you and not caring about his commission.
I have seen IULs structured with the max funded like Doug Andrew talks about but doesn't participate in the markets and acts more like a WL.
Best way to get out of one & into something better?
8:54 I was looking at one of my WL policies since the anniversary just passed, and it was a few thousand more than the non-guaranteed illustration... this was 7 years in, so it was a policy written in 2015.
Once I saw Chris' face I couldn't even bring myself to listen- next
Great Video. Though you are caught up op the "advertised/criminal", part of the IUL Illustration is the historical value, mentioned on the document. Agents should explain that. Can't blame the carrier for it. I always explain it. Also, I am not against WL but WL also becomes too expensive for clients plus the Accelerated benefits need to be purchased at an additional price. You can participate on a monthly or annual basis etc. They both have their pros and cons; client's decision at the end of the day. Infact, WL would be best for me when it comes to compensation :) - I love to sell any/all life products between Term, WL, and IUL.
Do you have an IMO that specializes in all 3? It seems from my research they tend to focus to 1, maybe 2 of the types
How does whole life “become too expensive?”
@@thenynick3698 Maybe he meant that WL is too expensive from the get go compared to IUL with adjustable premiums?
Don't know
What about an IUL for kids? Where time is really a lifetime, as in a 4-5 yr old or newborn?
You can get your child an IUL starting from the day of 1 day old
I am a broke in Florida. However, my fiancé is licensed in about 30 states, so if you need assistance please reach out
It's as soon as you they get their SSN
Hi, Caleb, is there any situation on a IUL will be a good a product?
Thanks for the content 🙏🏼
Thanks for commenting and watching Darley! Our main opinion is that for the majority of people it's not a good fit, especially with the way it's sold. I do know that it can work for some people though. Chris Kirkpatrick from LIFE180 (my guest on the video) has a lot of resources and content on IUL's and would be a really good place to get more of the info you're looking for :)
Indexed Universal Life Training: th-cam.com/play/PLrRnvQl4pMjjMjEBtUVEJU_cwCZKtEvE1.html
That's a good training Playlist for IUL so you really understand the ins and outs of how they work.
@@LIFE180 thank you so much! 🙏🏼👊🏼
@@DarleyTomazusa that is not good training.
@@vangustiapoint me to where there good training.
What does the guarantee insurance use to make its Gains? My dad is in guaranteed insurance i think whole life. I am trying to figure this out for him because he has no idea just trust the insurance salesmans speal.
Hello and thanks for this great info. How would I discontinue IUL payments?
You can just adjust the policy to make it act more like a WL policy if the company gives the flexibility.
It is all on how it was structured so best thing to do is to get with an agent that can do an audit of your IUL.
Give you advice as a fiduciary
And helps you make changes with the current policy company.
UNLESS the best course of action is to cancel the policy which most time would not be the best option due to surrender charges that may show up
At 80% par rate and market is at 20% you earn 16% and these are realized gains.
But, what is he CAP on this policy?
13:30 question, yes you can still get to 10%.
Caleb you know that the policyvstates cap rates can be lowered or increasd.
I'll just invest $3k a month and take a loan any time I want and use the stock as collateral and not get scammed by insurance companies and agents making $500k a year. They are getting that money from someone. You. At the end of $20 years using average returns, I'll have $1.2 million. Use it as collateral for more loans and Never Pay capital gains tax and leave it in my will and use the step up in basis to minimize their tax burden.
no cap, 236 participation rate. Is this good?
?! is it variable.
Dear LORD! I had NO idea this existed! I am on disability. I have $28k in the bank. Should I invent into this!? I have a bachelors degree and they NEVER taught us this! And it was in Business! Im soooo pissed off! Please help me!
Hi, where are you located?
That's one perspective of how u can say college is a scam somehow. Anything that will make u be successful and healthy are never taught in colleges
That’s financial business for ya but honestly 6% on 600k per year is great
There's new IRS rules yo the IRS.
But, IUl sells with the Index Funds investment mentality of not paying tax and guaranteeing gains.
I would just buy a term life and invest the rest in SP 500...
Why buy term? 99% don't ever pay out.
@@theforce5191 99% don't payout because 99% outlives the policy. It's an insurance not a leverage.
@@theforce5191some people have dependents who live off of their income and will leave the family struggle if they die. Term life serves exactly what it’s supposed to do at low cost for the duration of time that the dependents may need support from this income. That’s why it’s called insurance not investment
The problem is that risk of loss if it goes down.
The IUL eliminates that by giving security of the zero floor.
It's much harder to come back from a loss then just starting where left off.
If market goes down in the red 25% it needs to come up roughly 33% to break even.
That can take 2-4 years worth of time unless we get a "loss decade" situation.
All the while the IUL will be in the green the entire time.
That being said. The IUL is for Safety, Security, Flexibility, and ease of Access.
It is a SAVINGS vehicle NOT an Investment vehicle
@@jordanperrault5039 Yes, IUL has zero floor security guarantee but also comes with a hefty administration fee(s). Even at 0 risk, you still have to pay out the administration fee annually. That the fix cost regardless. Besides, I don't believe IUL can out perform the fortune 500 index.
Securian S&P Prism (SM) 3 year index Uncapped illustrated at 5.72% answers your challenge!!!
What is bad making 52% realized gains? Many people have assets in 401k and they have no control of what the market does. Iul the 52% gain will not be lost.
Properly structured iul will out pace a whole life long term. Caleb do you have money in the market? Isn't that risky?
Can you show us illustrations that verify that?
@@jeffreykamke it's just math. When you can get double digit returns in an iul and no losses it just works.
@vangustia Chris does say iul Anaya looks great on paper. So ofcourse the math will check out. He does have an iul challenge, so if you can prove him wrong, I think he's offering 2k.
@@theforce5191 2k is not enough.
Cap rates will start going back up.
Lol don't say it if you don't even know when.
@@Fetch94 they have already started going back up when I said this. Diff companies move at diff times. Thanks! Lol
@@TheOpinionSports who's they then? Lol
@@Fetch94 I don’t have nothing to explain to you… carry on you don’t understand!! LoL if you can’t grasp who “they” is then you can’t grasp shit!!
A bit bias coming from the guy that HATES IUL lol
Martin Karen Davis Laura Clark John
Cap rates are increasing because of rates going up. Cap rates were not eliminated because of you Chris. Lmfao!
This video was edited and cut soooo many times.
Hey! Producer here! This video was cut from a longer conversation on multiple topics. We cut out anything unrelated to this topic itself. Always aiming to improve our content though so we’ll aim to keep improving the flow!
@@BetterWealth pars and cap have gone up with a lot of carriers since this video....
Is this the 100% truth or a boy crying wolf?!
Kirkpatrick 🤣 🤣 just lost all respect for Caleb 👋
Create a business that does what an insurance company does and you’ll have all the control. Can you make money on option calls in index and manage it with intention to pay out a lifetime income at age 65 tax Defferred No you can’t that’s there business and they get paid to do it Dumb video DYOR