These kinds of videos are important. I recently had a guy reach out to me after watching some of my content. He had an IUL that was over 7 years old. He had been target funding it for that entire time and thought that was ok. After putting $19k into it he only has a cash surrender value of $7k. In the best case scenario if his in force illustration the policy will break even at year 17. Looking at the midpoint projection it never actually breaks even. Guy was super disappointed, wants out of it, and will have likely lost $12k on the deal. He’s a good dude too, retired military. There are far more target funded policies out there than max funded policies that are going to hurt people.
Well said, Ian! So crazy how many bad policies there are and people have NO IDEA what they are involved with. I had 3 more people send me illustrations today and they are all losing thousands
@@TheOpinionSports Let’s think about this… How can you say the agent didn’t do a good job when he hit the “target”? That’s how IUL is designed to be funded by the companies that make the product. The illustrations all give a target funding amount. Do the insurance companies provide a target funding amount hoping the policies that get sold won’t hit the target?? Blaming agents for designing a product the way the company intended it to be designed is not acknowledging the real issue here my friend.
@@ianvogelmedia No, the product is designed to be max funded. Target may only work if you are putting in a lot of cash. What you just explained in your first post does not describe the customer policy blowing up but it sounds like he was looking for max accumulation and if he wants max cash accumulation then target is never the way. A target funded policy would be if someone is values the death benefit a lot more than they do accumulating cash. So I will stand by my statement that target is not the way of someone is trying to accumulate cash.
Hey Chris, could you do a video on Premium Financing that they pre-port is a good idea using IUL. That would be an enjoyable dissecting on what issues and hazards one might encounter going that route. Good breakdown in this video Chris, well done.
Because they are the most profitable product they sell, that's why. Regulators have changed illustration rules 3 times in 9 years....the insurance companies just pivot and get around the new rules. That's the problem....it's not even most agents fault....it starts at the carrier....
I had a client that purchased a whole life policy and an IUL policy with the same amount of premium in the same month and when we did the review on it the whole life earned $300 in dividens and IUL earned over $1,000 in interest. How is that NOT a better plan? There is NOT an IUL that illustrates at 9% and IUL’s have participation rates no cap vs CAP. Yes there are strategies that have caps and spreads but I don’t use those strategies. Yes there are years that don’t get any interest but there are also fixed strategies that give a 3% fixed and those funds will get interest credit. There are also years that do way more like a client that got over 40% in their plan which offsets the zero years.
@@mattseibertwhen you are in Your contribution years you won’t lose money so whatever the cash value is 40% will most likely make up for the zero years since 40% is rather rare.
Best time to get a policy with my design before the carrier stops offering it.
NLG won't stop offering that until regulators force them to....which I bet happens eventually
@LIFE180 that is good. The 7% LIBR is the best thing I have seen!
These kinds of videos are important. I recently had a guy reach out to me after watching some of my content. He had an IUL that was over 7 years old.
He had been target funding it for that entire time and thought that was ok. After putting $19k into it he only has a cash surrender value of $7k.
In the best case scenario if his in force illustration the policy will break even at year 17. Looking at the midpoint projection it never actually breaks even.
Guy was super disappointed, wants out of it, and will have likely lost $12k on the deal. He’s a good dude too, retired military.
There are far more target funded policies out there than max funded policies that are going to hurt people.
Well said, Ian! So crazy how many bad policies there are and people have NO IDEA what they are involved with. I had 3 more people send me illustrations today and they are all losing thousands
Sounds like who ever structured his policy didn’t do a good job. Target is never the way. Hate to hear that for that guy.
@@TheOpinionSports true....target is never the way. Even at GLP there is a ton of risk long term
@@TheOpinionSports Let’s think about this… How can you say the agent didn’t do a good job when he hit the “target”?
That’s how IUL is designed to be funded by the companies that make the product. The illustrations all give a target funding amount.
Do the insurance companies provide a target funding amount hoping the policies that get sold won’t hit the target??
Blaming agents for designing a product the way the company intended it to be designed is not acknowledging the real issue here my friend.
@@ianvogelmedia No, the product is designed to be max funded. Target may only work if you are putting in a lot of cash. What you just explained in your first post does not describe the customer policy blowing up but it sounds like he was looking for max accumulation and if he wants max cash accumulation then target is never the way. A target funded policy would be if someone is values the death benefit a lot more than they do accumulating cash. So I will stand by my statement that target is not the way of someone is trying to accumulate cash.
Hey Chris, could you do a video on Premium Financing that they pre-port is a good idea using IUL. That would be an enjoyable dissecting on what issues and hazards one might encounter going that route. Good breakdown in this video Chris, well done.
Funny you bring this up....I am working on putting together stuff on premium finance for a video because that market is getting SMASHED
Good video. Thanks Chris!
Thanks. Hope it helped give some deeper education
If they are truly to as bad as you often say... why do insurance companies even continue to offer this product? ( honest question)
Because they are the most profitable product they sell, that's why. Regulators have changed illustration rules 3 times in 9 years....the insurance companies just pivot and get around the new rules. That's the problem....it's not even most agents fault....it starts at the carrier....
💰💰💰💰The same reason big pharma makes billions off selling drugs that have little or no efficacy.
coz they lied that's why they don't respond to you.
I respond to everyone I see......I don't see anything here to respond to...going through comments now
@@LIFE180 oh just stating that the reason why they didn't respond when you challenged them coz they lied.
I had a client that purchased a whole life policy and an IUL policy with the same amount of premium in the same month and when we did the review on it the whole life earned $300 in dividens and IUL earned over $1,000 in interest. How is that NOT a better plan?
There is NOT an IUL that illustrates at 9% and IUL’s have participation rates no cap vs CAP. Yes there are strategies that have caps and spreads but I don’t use those strategies.
Yes there are years that don’t get any interest but there are also fixed strategies that give a 3% fixed and those funds will get interest credit. There are also years that do way more like a client that got over 40% in their plan which offsets the zero years.
reallly? 40%?
Talk to me in 20-30 years. Idk about you, but I don't use life insurance for a 5 year or even 10 year window.... I do it for life.
Win the #IULchallenge if it's so good.....🙄
The question is,....40% of what amount? What was the actual increase in dollars that gives you the confidence it will offset the zero years?
@@mattseibertwhen you are in Your contribution years you won’t lose money so whatever the cash value is 40% will most likely make up for the zero years since 40% is rather rare.