IUL has evolved since filming this video...so have the lies used to sell it. Check out the newer, updated version: th-cam.com/video/e_wWDMTDD4I/w-d-xo.html 6 Lies Used To Sell IUL In 2024
First, I want to say that I appreciate several of the pieces of information in your videos, especially the sunsetting of lucrative bonds putting pressure on the insurance companies to chase the return. That said, I believe your broad-brushing and generalisation of IULs borderlines "straw-manning", where you don't apply the same intellectual consistency and nuance when discussing IULs as you do when you discuss WLs. This in turn undermines your overall credibility. Here's how: When you're breaking down and explaining whole life policies you show illustrations, and you show "the good, the bad and the ugly" among different whole life policies. You're allowing yourself to be nuanced by explaining that a whole life policy needs to be PROPERLY structured, and then you show examples in some of your videos, ranging from "bad" to "best". This is great, and is in line with my own experience comparing multiple policies from multiple companies before I landed on our current whole life policies (Big believer in whole life here). In my personal experience the State Farm policy wouldn't break even until year 30 (horribly structured), Northwestern Mutual's wouldn't break even until year 15 (better but still too pricey), whereas Penn Mutual would break even in year 5 (very well structured policy, mirroring closely the optimal whole life policies you've shown, shoutout to Jaden Zubal!). When Dave Ramsey and others criticise whole life, you'll allow yourself to point to those bad policies and say: "yeah, if this was the policy, I would AGREE with Dave Ramsey that THAT whole life policy is bad". But then you would say: "Here's how to do it PROPERLY" and show how. You wouldn't appreciate the broad brush generalisations using a bad whole life policy to justify that ALL whole life policies are bad. You want nuance, show the gray, show the good policies and the bad ones, and why they're different. Yet, you do the exact same as Dave Ramsey and others criticising whole life when you discuss IULs. Just like there's a broad range of whole life policy variations, there's the same for IULs. And yes, there are some pretty bad ones out there. And yes, there are some agents out there to line their own pockets. But there are some IULs designed with the same approach you recommend for whole life. In my view it would be intellectually honest and consistent of you to attempt to STEEL-MAN IULs by not letting the BAD products speak for ALL IUL policies the same way Dave Ramsey and others speak of whole life. You said this about Curtis Ray yesterday: "“.....Curtis Ray are 2 of the most dangerous people when it comes to your personal finances….”. Yes, you're meeting with him to discuss, and hopefully both of you will benefit from the conversation by having truly open minds, allowing the facts to decide, but I think it's "sensationalist" and unproductive of you to conclude publicly about Curtis Ray before even having had that in-depth conversation with him. My advice? You roll your eyes when Dave Ramsey and others take a "State Farm whole life policy" as "the golden example of what whole life is" and use that as a straw man to say that ALL whole life is bad. Don't "Dave Ramsey" your approach to IULs by cherrypicking the bad IULs without having ALSO first given the people that PROPERLY structure IULs the chance to give you the details, the performance that matches the illustrations.
That's a fair statement. I have done plenty of videos on the good and bad of whole life insurance and why it has a bad name in the past. You can find in my channel if you want. It's there. Secondly, I hope I'm wrong on Curtis. But as a whole, I am not simply using a couple bad companies and broad stroking the entire Industry. I am looking at the product from a place of principle and WHY companies are going that route instead of the whole life route. It's because the insurance company is safer and you the insured take on more risk. Show me an IUL policy you have written 10+ years ago. Show me the initial illustration. Now Show me an inforce illustration. The illustration for the sale will outperform the inforce illustration every time. I've looked at HUNDREDS of these. I am going to be doing many more videos. Some more technical in nature. Some more opinion driven. Much of my problem with IUL comes down to my philosophy of the roll insurance should play in someones life. It's not meant to be an investment....period. in fact, the industry as a whole is coming down with regulation changes BECAUSE so many agents are misrepresenting IUL'S.
All that said, I believe there is a reason whole life agents also get a bad rap. Most agents don't know what they are doing. Furthermore, the IBC people of the world don't get it much of the time either. I think IBC is 95% on the money, but a lot of their math doesn't add up. At the end of the day, I am just one person 🤣 I can only make so much content so fast. Keep subscribed and you'll see. I appreciate your input and I agree with much of what you said, so I will make content to keep it clear on my full spectrum perspective as I think you're right- that will serve people best
My main thing on Curtis Ray that I have a challenge with is using policy loans to buy more insurance to create Arbitrage. I would be SHOCKED if companies let him do that because it puts a TON of financial stress on the companies reserve requirements... In addition, while it may have worked during the greatest bull market run in history, I don't believe it'll work in a flatter economic environment because there won't be arbitrage....there will be additional loan expenses eating into the performance of the CV. Tap that on top of the nature of the insurance companies ability to change expenses and fees and cap rates to generate revenue for THEM, it's a dangerous combo. The fact that IUL agents want to dismiss those facts seem very self serving to me. I've sold more IUL in my life than most people ever will... I'm just speaking from experience. And sharing my story. If you think I need to do a better job sharing both sides, I appreciate that input and will try to make content both ways....
@@vangustia I have sold IUL's from 6 different companies. That really has nothing to do with anything though. How the foundations of IUL's work is the same with every company. The principles and concepts are what they are.
@@vangustia the difference about my view of IUL is that there is actual math that shows IUL'S never perform as they are illustrated. My issue isn't with IUL, it's with the expectations they are sold with.
Glad I saw this video. I used to work for a company that sold IULs. They pushed them heavily on the employees to the point I’m fairly certain I was the only person working there without one. I always had a feeling that the math wasn’t adding up, but the way everyone was so pro-IUL there made me feel like I was wrong. Glad to know my instincts were right and I didn’t buy into their lies
You hear one thing from 1 guy and you hear something totally different from another. Why don't you do some independent research then revisit the topic. Especially when the person totally hates something. What are the chances they will say anything positive? 🤔🤔
The dude sells whole life he talks bad about a product in which he doesn't sell because his company doesn't offer it or because he makes less commissions selling it, definitely do independent reading and investigating
When structured correctly, agents earn much less commissions on this product. You reference agents contracted commission structure, not what they make on this particular product which is based on target commission. Many of these policies outperform illustrations. You need to address the real problem with this product, which is structure and funding...
Actually, IUL and WL can both be structured where the agent makes less and more CV goes to the client. However, IUL pure commission rates are much higher across the board than whole life commission rates. Structure and funding are important, but you can never eliminate the risk on the IUL side. And AG49B coming out is going to change a lot of sales practices for agents that sell IUL for retirement income. Not going to be able to illustrate positive Arbitrage anymore, and income dropping by 50%...exactly what I've been saying for YEARS
Agent contracted commission is relevant only to a certain extent. IUL pays based on target premium with a smaller percentage paid on overfunded premium. I don't understand the relevance of your comment. It's a top down situation. PHP has likely a 160%+ contract at the top. That's getting paid somewhere. Starting agents at 30% and making them split deals with their upline who are already getting paid an override is ridiculous....
Thank you for making this video. A MLM person has been trying to get me to buy Transamerica IUL for several weeks now; including trying to get me to sell it with them. I never invest in something that I don't understand. To date she has not been able to answer my questions about guaranteed income, who makes fees, what amount and when and the overall expenses and constraints/flexibility of the policy. She sends me snapshots of illustrations with $11M death benefit after I have explained repeatedly that I do not want a large death benefit (no kids do far). I just want another income stream in retirement. Your video has confirmed that my hesitation was the right thing to do.
That's because she works for WFG and they don't train their agents on how the product actually works because of they did, they wouldn't be able to have as many agents selling it as they do because people have morals... Happy the video helped. Good on you for making sure you understand all the details for yourself before putting your money into anything
Hello @ktessentialstv991. I too am glad you didn’t but into transamerica. I work with another agency and was able to successfully move five clients over to our IUL because I sat down with each one of them and was as transparent about the fees, face value and what they would be getting with their policy with us. Their previous agent just signed them up for an IUL and didn’t go over anything. When I made my initial contact they all were unable to tell me their face value of their old policy’s. Plus they didn’t even know about Living Benefits.
@@LIFE180I'm considering joining an MLM to begin my journey as an agent. Is there a way to be an agent with an MLM and be a great agent that writes policies the 'correct' way?
@@cali.songbird I mean....not with an MLM....that's why we created our IMO...to be a great alternative to MLM's and give same benefits of building without the requirements....but really focusing on learning the products. Agent.life180.com
Thank you for this video. I had a smooth talking non-fiduciary 'Financial Planner' try to convince me to buy this product to fund college for my kids. A little voice in my head kept whispering to me - "Not so fast". His big selling point was the 'safety' angle of having so much insurance. Glad I came across your video!
One thing he doesn't mention is that the cost of insurance with a standard WL policy is higher than those in an IUL. Next he says "The policies never perform as they will." Well, I've told my clients that it's a guestimate & nobody knows what cash will be there in 20-30 yrs. And if he believes that they don't perform then he should tell that to one of my clients that had a premium of $300/mo, & paid for 9 yrs & has $41,000 in CV, after expenses & I recall seeing the numbers that the S&P was ZERO for at least 2 yrs. Maybe I should call the insurance company & tell them they made a mistake & the client doesn't really have that amount. It's always nice to make decisions based on theory but I'm making comments based on facts.
You should submit that case for the #IULchallenge. It's only 9 years. But if they are only paying $3,600 per year and have $41,000 after 9 years, I'll give you $2k. Just show the original illustration and an in force. Not saying it isn't "possible"...just saying there's about a 1% chance...and that's not the kind of odds I like to give my clients.
I don't know what you mean by "I'll give you $2,000.) I never did an original illustration because I presented it on just the idea of a tax-free income, not what amount would be there. One co that tried to recruit me said I was doing my clients a disservice by not doing an illustration but I told him I thought it was a disservice by using one because no one knows what will be there. But today most companies require an illustration with the application.@@LIFE180
I have another client who also has a 9 yr old policy, with a $400, premium & a DB of $194,000 & has a CV of $43,500, after all expenses. So, if it's done right, it is very possible. @@LIFE180
To answer your question at 5:40, they can do all of that by generating more returns via indexing. IULs use the market. The market mostly goes up. Not participating in the market is like turning down a free bus ride and saying no thanks I’ll walk.
The problem is, the market performance really has nothing to do with the performance of the policy. I'd be curious if you can explain why that is the case?
My Nationwide IUL is out performing the illustration but one of the best parts is when I borrow from it to buy another asset to create more passive income my Pacific Life is also out performing the illustration so definitely depends on the company
@@LIFE180 Its not about the surrender period. It is about how the market performed in those years since IUL's indexed strategy refers S&P 500 or high cap multi index etc
No offense, but you sell whole life, which I know why whole life is a promised return of about 3-4%, but the main reason is because whole life commissions is so heavy no wonder why you hate on IUL that makes sense
My agent used a slightly more than 3% rate when she did the illustration with me and my performance has be much greater. And if I remember correctly the historical number is a bit higher than 7% which helps explains. Plus and more importantly, my agents, and I know many agents do too, designed my policy such that the insurance policy I'd buy decrease as I get older therefore the insurance cost won't keep increasing much (people typically need less protection when they get older with less debt and responsibility so it makes sense); so the cost part won't eat into your accumulated money especially you will see more significantly compounding interest come out. I overall found IUL a great tool, and better than whole life if designed well.
All I can say is that I hear those responses all the time and they still have problems. 7% is market history avg, NOT policy return avg after fees.... All the other comments mean your policy will be better than most, but when you start taking loans, it'll be really exposed.
14:20 to 14:22. You just said it. If the policy is not structured correctly or if your agent doesn't know what he is doing.... So if it is structured correctly and the agent does know what they are doing the opposite is true.
@@gorgeousfrazier5903 there are more good agents out there than there are bad ones. It also has to do with the leadership and training. Stay away from the MLM's
So true one, I read money, wealth, life insurance. I knew I wanted one, and it took me a min to choose a company, and the life insurance agent was very knowledgeable and helpful. I'm very happy with my account, definitely exceeding the guaranteed cash value
Lost about $700, Had a whole-life policy of $350,000 for $66 per month that was convertible to a UL. Once it converted, the policy's value went to $135,000.00, and they wanted $308 per pay period to put on the investment /savings side. When I bought it, the agent said it would just convert at the exact cost, and I would pay into the savings side. Just lies.
Out of curiosity, what was your age when you got the whole life vs the universal life and was it a universal life policy or an index universal life policy? Did you look at the illustration prior to signing off on it (this is a mandatory requirement) and was there a difference in underwriters rating from the whole life vs when you go the universal life policy. I ask because a $66 for $350,000 whole life policy (especially one that is dividend paying) is darn near impossible (Im a broker) unless you got this policy decades ago. Your decrease in death benefit and increase in premium sounds like they did a minimum death benefit, maximum cash value concept. That is ideal for life insurance so that most of your premium is going to the cash and the bare minimum is to be allocated to the cost of insurance. I love if you could clarify though.
Great video. Just educated me more on all the reading I've done regarding IUL's. It sounded like "The Goose That Laid the Golden Eggs" and I thought, I need to have one myself its so good. That being said, thanks for your honesty about "hey if I didn't know I would too." Yep what you described about "Whole Life" being the only way to GUARANTEE what you want happens happens and then the "controlling the variables" part and not complicating your "Life Insurance" was the most to the point part about the risk of IUL and it just NOT performing. Thanks for the video and will be studying and looking into the Whole Life side of things
This guy is only talking about terrible agents that don't know what they are doing. I explain all of the fees to my clients and i actually know how to structure these properly. And FYI my commission on whole life is much better but I sell IULs because it's better for the client He us just trying to push his products.
In my opinion no matter what IUL’s are still a win win situation because even if the investment “ cash accumulation “ side does not work out or performs poorly . The life insurance portion is still guaranteed for a lower premium than what you would get for a whole life policy .
Factually untrue... The net cost of an IUL over the LIFE of the contract is more than a whole life policy. The insurance is NEVER guaranteed - UNLESS the guaranteed column says it is in the IUL illustration.
@@LIFE180 have you done a video breaking down the cost of both? If not I would like to see a video on this. Take two policies with same face value and surrender period if that’s possible and break down the internal charges inside.
@@TheOpinionSports I will do a video on that. First off, whole life doesn't have a surrender period like IUL does. There is no surrender period for whole life policies. But I will make a video on IUL vs whole life
The thing that sets off a red flag is downside "protection." Downside protection has counter party risk and the insurance company is bearing that risk. You can't exercise a put on someone who is bankrupt. The market makers can't clear all the options when we have something like the Great Depression.
the reason they say there is a protection at the bottom is because there is a cap at the top, meaning they cap it at about 15 % so if market hits like 50 % upside you will be capped at 15% and they keep the rest.
Hello all, when looking at life insurance you should look at their ABRs or riders that come with the policy not all companies offer the same riders. Some offer only 4 some as many as 18.
Is there a way to cancel an existing IUL to whole life without penalty ? Say the IUL has only been started 3 months (3 monthly payment so far) .can we transfer the face value or part of the premium payments to a whole life?
So there’s no fees in WL?? The dividend that is illustrated in WL is also subject to all of these policy costs you mention. So if a Dividend is showing 6% what’s the actually amount being creditor to the CV portion of a WL contract after all of these fees ?
Looks like IUL pays around 6% -7% annually after all fees. When treasury bills get up to 7% UIL’s become essentially useless. I think insurance companies know that and are trying to push hard right now. Too many asterisks and fine prints for essentially a 7% bond.
What are all the benefits vs disadvantages? I was looking to use it for borrowing to buy assets. Basically put in a certain amount per month grow cash value and borrow from I think they said death benefit use the loan to buy real estate, dividend stocks etc. is this a good option for that and how do I properly have it structured? I use to be a life insurance agent but universal life kinda confused me.
I've owned whole life policies for years, and I frown on borrowing against them idea. I have done it, and I think it has worked for me. But the only reason it did was by way of the success I've had in my other investments. The life policies were good in that I bought them when young and I didn't know anything about investing. Also, Roth IRAs hadn't been invented yet. Now I'm flush in all my accounts (401k-IRA, 401k-Roth, Roth, taxable, and I have whole life policies for death benefit, so I really question the investment value of life insurance. I do like having the death benefit. Find out how to invest as early as you can, and you won't need to borrow money from yourself if that even makes sense. You do have to pay back the loans with interest or you're pretty much screwed. Just remember if you don't get a great return on the money you borrowed you're up a creek. You can't just say "ah well, I only owe myself so it's no big deal". The consquences of not being able to pay it back are your policy lapsing or taking a huge tax hit.
From IUL If you have good enough cash value you can get upto 90% of cash value as loan. You need to make sure cash value is not going down so that policy is not elapsed. Once you paid all your premiums there will b 0% interest on loans otherwise there will be 0.75% to 1.25% interest.
Great video. I have an agent/advisor trying to sell me indexed universal life and the illustration shows me over funding in first 5 years and then him borrowing the cash value out of it and plowing that money back in as premiums to even further accelerate the growth. In the end it looks like the loan and interest due eat up the cash value and leave me with a small death benefit. He bases it on a 5% growth rate but says he has to show that but really manages it to get way more growth. All sounds great but not for me. Especially after this video.
Get a new agent. He’s not fiduciary and probably has you in expensive American funds too. Any one that is trying to “sell” you anything is not a financial advisor.
Billy . Tale a look at the surrender charges 15 years? Loan creates interest that stay in your account and add up over time. It seems they didn’t educate you well and it wasn’t designed correctly. I sell IUl with living benefits at no charge .. contact me . IUL and Investment properties are the way to go..
living benefits are one of the good things about IUL, sure. However, they are only as good as the policy. If the policy has funding issues, the living benefits will suffer, as well. Whole life insurance offers living benefits just that are just as solid as IUL. I think that is one of the most ridiculous elements of uneducated agents. I hear from so many potential clients who were looking into both IUL and WL that tell me their IUL agent told them WL doesn't even offer living benefits. IDK if the agents are just lying or if they are really that uneducated? Either way, it is sad.
It really depends on your cash flow, and the rest of your financial plan. We would be happy to connect over a clarity call and work through it with you. LIFE180.com/clarity-call
So, the first time I heard about IUL was in the 90s. I made a spreadsheet of the S&P500 rates of return per annum. In a corresponding column, I put the IUL match, or min or max. The yearly returns over 3 decades were closely matched. The upside to the IUL is that you never go backwards and have to make up the losses. I saw my 401k lose 40% in a year. I didn't recover in a year. To rebutt your commission accusation, in an IUL where there are PUAs to build cash value, the commission is only paid on the insurance portion of the monthly payments. Maybe you could show an actual statement of a disappointing IUL and give all the background. Did they make PUAs? Did they take a loan and not return the cash value? Compare the illustration to the actual outcome.
Lea, there are no PUA's with IUL, PUA'S are a whole life component. I have shown lots of videos with actual illustrations to show the problems. This is just 1 video on over 100 I have done on this topic.
I’ve seen a lot other videos on IUL here on YT, and almost ALL agents comment and say -- “if/when structured properly..” I call BS! Is it a training issue or the agents just don’t care to structure it properly… so they can make higher commission?
The problem starts with the insurance companies. They train agents and leave out crucial info. That's where it starts. But some agents absolutely know what they are doing in deceiving people. Anyone that tells you IUL is good as long as it is structured properly....ask them to share a policy that is 10 years old and compare actual performance to how it was illustrated when sold. They won't do it. My new book is coming out later this year: IUL Exposed. Be on the lookout
You said that during the period of not gaining money there is still fees, but what you don’t say is that having an IRA you loose money and still have fees
Sure, there are fees with the IRA, too. I'm not saying I love IRA'S or 401k's....I don't. But IUL agents that try to position IUL'S as something they are not is disgraceful. IUL'S will never achieve a NET return in the competitive range of an investment account over 30 years.... it's all smoke and mirrors with positive illustrated Arbitrage....which is going away with regulation update in 2023.
@@LIFE180 at the end of the day in my opinion the not being taxed upon retirement with an IUL or annuity definitely is better than getting hit with a 40% tax as IRA,401k,403b’s do and people aren’t informed on that at all.
@jose garcia at the end of the day, COI risk inside of an IUL is just as bad if not worse than taxation risk. IUL is misunderstood by the agents that sell it, therefor misrepresented.
Thanks for the info. What would you say to someone who says - life is actually shorter these days - so we are going to outdo the insurance companies simply by filing more living benefits claims and even dying earlier - hence making IUL's worth it - because the clients are actually winning over the insurance companies ? Would love your thoughts on this narrative.
Insurance agents actually get paid less for selling IUL’s. They don’t get paid off of the Index aspect of the policy. They only get paid off of the life insurance part. Especially when the policy is set up for more of your monthly premium to go towards building cash value.
@@LIFE180 I am a licensed broker in over 10 different who’s contracted with over 20 different insurance company’s, this isn’t true I don’t where this information is coming from. What insurance company pays more? Because varies company to company and I still haven’t seen one that pays more, the reason this is because WE ONLY GET PAID ON THE LIFE INSURANCE
@@LIFE180We don’t get commission on the percentage of premium that is tied to an index fund, so tell me how I’m the world would we get paid more from IULs vs a whole Life policy?
@joey Baer I will answer, but before I do, I want you to answer technically how you get paid commission on IUL. What percentage commission for what portion of the premium? Then explain how it works with whole life. These are things you should know 100% BEFORE you go making comments about stuff you don't fully understand
@@joeybaer6140 100% of what I have said is true. See my other comment. Break it all down then. How does it work? Go through the 4 lies one by one and tell me where I am wrong. Oh yeah, you can't. So maybe instead, you should open up your mind to learning something.
IF it is set up properly, it could potentially be a a permanent death benefit. All that goes out the window when you start leveraging for income through policy loans
Broken down what I hear is his big complaint is that the fees take away from the investment and this is not explained up front. And this guy Doug Andrew was selling something to his clients that most agents would not sell in general. THe problem with Doug Andre it looks like the problem was with him and not IUL policies in general.
Depends on your situation. If you'd like to have a clarity call to learn the best for your situation, you can use this link to set up a time. Calendly.com/_life180/claritycall
Thank you! Extremely valuable information. Wow, ...so much they don't tell you. So many ways to get scammed it seems. What's the reputation of Banker's Life universal index life plan? I think they tried to get me! Please advise, thanks.
@@LIFE180 OMG!! Thanks!! 🙏 I lucked out. Just cancelled. (I hope) On the 29th day of my 30 days to surrender policy. They already took 2 monthly ACH payments in about 20 days. Took first payment before notifying me if approved by underwriting! Nothing I'm learning on my own, was presented to me by agent. Fast and loose. After policy was delivered, I asked for copies of my signatures. Agent said unnecessary, ...just signatures to confirm policy received. I asked to take a picture of signed paperwork. Again agent said, unnecessary. Just paperwork indicating policy was delivered. Very sketchy. So I requested refund, requiring full surrender. I have a different TERM policy (not Banker's Life) Perturbed at me for cancelling, the agent now berated me in a nasty reply..."hope you enjoy your term policy that only pays out 1 percent of the time, and becomes uncomfortable in 10 years." (End quote, Banker's agent) How unprofessional. A bad experience. Thanks again, love your videos and your resume. Exciting stuff. Congratulations! Godspeed!
Yes, everyone has a 30 day free look period. Call the company directly and cancel if you want. Just know you won't have any life insurance if you do. If that is important to you, I would work real fast to get other coverage in place. Let us know if you need help.
Like going from a pension to a 401k. My agent who is dead now was all about commission for him. Every year I called him when I got my statement, because I totally did not understand it.
That sucks, I am sorry. If you need help with anything looking it over, email Chris@LIFE180.com I can either help or have someone on my team help if you need...
I wouldn't purchase IUL, I would go with whole life. But absolutely do your research and make sure that whatever you buy is in alignment with your goals.
I can relate and agree that a lot of these agents either don’t understand what they are selling or they are motivated by the commissions. I bought into IUL with the hope of over funding the cash value in the early years but like you said the policy charges are quickly eating into my cash value and not growing as shown in the illustration. I hate that I may have to wait 10 years to cancel the policy so I don’t have to pay the cancellation penalty.
@@mikej3571 I have always thought that. What puzzles me why so many people are sold these products. I wonder if it's good marketing or good salemens able to sell well. They are the cars salemen of the insurance world. If they exisit it must make sense to a small subset of cases.
Woooow, that's scary to hear your story. I want to get into Cash Value Life Insurance to use it as my own bank but what I've learned in the content creator's post and your own testimony I want to know the best way to go about it going forward and limit losses if the illustrations don't add up the way they should year by year. What is the solution?
Shouldn't have much of an impact on whole life. The loan rates never followed Libor, they follow the Moody' Bond Index typically. Plus they are capped at 8% for loan rates at a max, so if rates continue to climb, whole life policies become more valuable.
I just signed up for a IUL yesterday 😓 I want out now. My whole approach was making sure if something happens to me that my kids are well off. I feel like the agent persuaded me to get IUL instead of whole life. Should i just contact her and tell her im out?
You will still get death benefit from IUL. If your prime purpose if to have life insurance then IUL is good option. I think you have 30 days to cancel.
I would suggest you call the insurance company and understand the policy, try to have it handy to follow what the agent is telling you. I don’t think IUL is as bad as he makes it seems. I think is much better than whole life. I sell them all. Term, IUL, WL and they all have pros and cons but it depends on the age and what is your purpose for having it. I’m always reviewing policies for clients some time replacing them and sometimes just calling the company with them on the line and asking key questions.
Well, I don't know that I agree with that....insurance companies profit very small spreads over large amounts of money and long periods of time IF you are using a Participating Mutually Held Insurance Company. Stock insurance companies, on the other hand, your Grandpa was right!
I agree with the previous comment in regards to structure of policy and also in comparison to a 401k which is not guaranteed as with any investment. 401k takes losses all the time but people still invest because the S&P and all the other stock options in America will never not make a positive swing. Also the money your employer put in a 401k gets eaten up in taxes with no death benefit. Miseducation and improper structure is the problem . Also the commission is only a portion of the first year which is pennies in comparison to what the gains are for the consumer or the company..
IUL can be a great tool when designed the proper way for legacy planning. I have a video coming out on this exact topic next week. I also have this video: th-cam.com/video/3vLLE275geQ/w-d-xo.html
It's garbage. I have always been a bit skeptical of Foresters. But now they have proven they are in need of creating more revenue. Make no mistake about it....the only whole life companies that sell IUL are companies that are looking for another profit center to prop up other lines of business.
My dad bought a UL policy on me 25 years ago when I was 13. I’ve been paying the premiums for 10 years. What’s the math I need to be thinking through to decide to avoid sunk cost fallacy and just kill the policy? I think the death benefit is $250k which isn’t even one year of household income anymore.
If you would like to review your options with the team, feel free to use this link, they can walk you through everything Calendly.com/_life180/claritycall
Yes, that is deceptive, because it shows performance based on current assumptions of cap rates, participation rates, spread charges or one of the many other levers. It all changes when they increase the fees and reduce performance of the policy over time - which they will do....they always do
@@LIFE180 you know they have been chasing me for almost 1.5 years but I keep delaying bc something just didn’t feel right. ALWAYS trust your gut, and the smart friend who knows what they are talking about lol Thanks for the clarification!
@LIFE180… I’m 30,000 into my IUL. I’m a single mom and active duty military. I don’t know what to do. The surrender value is only 7,000USD if I discontinued the product. It seemed like an amazing product when I got it but it costs me $300 monthly. The death benefit is $800,000. The idea of security for my children if I die is priceless. What advice can you give me. Also, when I got the product, a financial advisor told me it was a good deal. 🤔
I would suggest to set up a call with my team and they can go deeper into it and guide you through potential options. Calendly.com/_life180/claritycall Hope that will help
So should I get a whole life insurance or term life? Also should I go with something like Globe life or primerica? What are some good amount. I am a mom of 4
Hey Nikky, These are all questions that vary greatly based on your personal circumstances. Happy to have you speak to one of my coaches to give you some guidance. Calendly.com/_life180/claritycall
I would recommend speaking with a broker who can shop around the rates and companies for you. Life insurance is based off your age,medical history, and financials. Also whether you should go with whole life or term also depends on your age and goal with the policy.
@@DadVSon23 GFI is just another IUL IMO doing the same stuff. It's a spinoff of WFG, that's it. Newer company, but already many people leaving them who joined
Term life will give you the most protection for the least amount of money. Get a level term product so your premium will never go up for the life of the policy. Then set up investments with a licensed agent so that you're life insurance and investments are kept separate. Life insurance is not an investment product
Thank you for this video. First and foremost Agents need to be selling based on need and not the underbelly of the illustrations. I worked for I think the same company you came from but I could not or should I say would not drink the Kool Aide. Thank for saying insurance is for insurance purposes, not for cornering the market. Stay well.
Who can I hire for some legit consultation that won’t be selling me anything? I’m so confused about what to get and idk whom to believe. I keep hearing different things
Well....first things first, look at regulation changes and ask yourself why they would be making them. Then check out LifeProductReview.com. it's the most detailed info on the internet. The guy who runs it is not licensed and does not sell anything. Keep digging deeper on HOW the policies actually work internally
If you need life insurance, get a term policy; you can do 10/20/30 years. If you want to invest your money for retirement and don’t have the options for 401k/403b through your employer, then open and IRA or preferably, a Roth IRA. You can open either of those through vanguard or fidelity. Lastly, if you are investing for your child’s education, use A 529. Let insurance be insurance and investments be investments.
I have pension and 401k through my employer, whom with I also decided to do an IUL with. Is this smart or should I be putting the little money going into the IUL somewhere else?
i bought IUL in 2014, my agent told me I can cancel anytime and ask for reimbursement. I did cancel my policy in 2016 and called the insurance company for reimbursement, the rep on the phone told me there's no refund.
The agent simply didn’t explain about the vesting period!! 🤦🏻♀️ not really the product that is the issue here.. in this case it was the agent.. so sorry
Sorry for your experience.Did you check your illustration before cancelling? It will show the surrender charges. I think in your case first 2 years you get zero cash value if you cancel it. Please check it so that you will atleast understand how it happened.
Thank You so much for this. We had a conference call with someone last week and decided to do our due diligence and research and came upon your informative video. Again thank you for your honesty and knowledge.
Same I was going to sign the contract this week but I decided to do my own research. I felt like putting $2000 a month in IUL was too much I can invest that money somewhere else.
The equation on how increased rates impact IUL is far more complicated. Increased rates means increases to whole life performance, but not IUL. Increased rates will likely increase the options budget....but the options costs are also increasing, which is negating any potential positivity long term for IUL'S.
Man, I love you for this, but I already purchased an IUL. Can I cancel? What should I do? I don’t want it. I just paid my first month’s premium of $200 but I don’t want to give them another dime. Also, what insurance should I get? I’m 48 with four children I need protection. Can you be my coach? I know I can trust you.
Set up a call with my team, they can guide you through to see what insurance is best to protect your family based on cash flow. If you provide them your illustration or statement, our team can advise on your IUL and give you a best path forward. LIFE180.com/clarity-call
I have IUL and whole life policies that I can sell, and I can say, for certain, the commissions for IUL are half that of the whole life insurance commissions.
@LIFE180 Is it possible to sue? The guy who sold it to me in 2021, his license went inactive in 2020, so he’s not licensed to sell. His wife’s name is on the paperwork who is licensed but I never spoke to her. Do I have a case?
Absolutely, you can sue if that is the case. The company would be liable or there would be an E&O claim... If what you are saying is the case and you have proof, the company will likely just refund your money. That is totally sketch
@@LIFE180 the most proof I have is text receipts where we’re setting up a call, and other texts throughout the past 2 years asking questions about my policy. Hopefully that’s enough proof. If it gets to the point, I can always pull phone records to show I never spoke to his wife. I got 28K in there 🤦🏻♂️ hopefully I can get it all back. He’s the boss of the company with an inactive license to sell. Company’s name is Beal Financial Group ran by Brandon Beal the guy who sold me the policy.
Glad I seen your video man. So are you saying a Whole Life Insurance is better? It seems as if you can take out money or a loan from it to invest into other things, in the way IULs are pitched. Not sure if I'm making sense, I'm new to this
I am saying that IUL is never good if you are using it as a cash flow play. It can work if the only thing you want it death benefit, but that's it... I get so mad about IUL because they are so misrepresented. Whole life does almost all of the things IUL is pitched as. Check out my book, cashflowhackingbook.com
@@LIFE180 - My sister sold me whole life policies in my mid-20s from NWM. Still have them and I like the death benefit, but I honestly don't get the cash flow aspect of it. If you borrow against them you have to have enough cash flow to pay it back with interest or you're screwed. I'm now financially independent because I was a Buffett style LT investor -yes buy and hold- but if you have enough assets someone will always loan you money. I no longer see WL as an investment, but I'm glad I have it even though I've no actual need of life insurance at this point.
I sold IUL for 4 years before I realized it wasn't what I thought it was. The problem is, the insurance company only trains you on the sales side. How to sell it and position it to get more sales. They don't teach you the internal working and risks....the downsides. Most people who are putting their own money into it as an agent simply haven't had them long enough to realize they are not what they think they are. Check out #IULchallenge to learn more....
@@uma001 I had an IUL when I sold them, yes. I didn't know what I didn't know. The problem is, the story is compelling and they make you feel like it is a long term investment. By the time you realize there is an issue, it is usually several years down the road (4 years for me to figure it out).
Is that so? Have you seen this ACTUALLY happen? Or just illustrated? I offer you to check out the #IULchallenge - see if you can win $1000. Or maybe you're just being speculative like most IUL agents who don't really truly understand what they are selling? 🤔. Idk...
@@LIFE180 What @claudymaze is trying to imply is after 15 years or 10 years there wont be much fees if premiums are completely paid and compounding percentage increases
Unfortunately I wish they didn’t have flexible premiums, that is the #1 manipulator factor into ruining an IUL. The clients are convinced they can make whatever payment option they want (down to minimum) and their policy will run as illustrated. Can’t tell you how many underfunded policies I’ve come across because client was told by the agent it’s “flexible”
@@Bryan-om3wq yep! Plus, the whole conversation around the indexed return. They always talk about it pretty fees. Some big players talking and running numbers and marketing based on 6.4%, but at the end of the day, if the Avg is 6.4%, the IRR is far lower.... Somehow with whole life, everyone seems to call that fact out 🤔
@@LIFE180 the IRR is important regardless. Fact is an IUL doesn’t get enticing until after first 10-15 years. It’s so heavily fee dependent in first years of contract, the longer the policy the more edge shifts to IUL. However first 10-15 years a whole life looks more enticing because the premiums are leveled out.
Is buying life insurance necessary? Is there something else to invest that is better than life insurance? I pay so much and I felt like I am wasting my money.
It really depends on what you are trying to accomplish. What are your values and beliefs? Do you value creating a plan that will help not only you during this lifetime, but will accomplish leaving a better life for the next generation? Life insurance should never be seen as an investment...it should be seen as a savings alternative. I have a lot of videos that go into this concept in detail if you want to dive in. Just let me know.
You left out the fact that after a certain age you will not be able to obtain term life insurance. You can also cash out an IUL as well as a Whole life policy.
I don't fully understand the context of this comment as it pertains to this video? Of course it becomes more expensive to get insurance as you get older. But what does that have to do with the lies used to sell IUL?
What are your thoughts about buying an IUL to cover estate taxes if it was inside a irrevocable life insurance trust? The “Roth for the well-off concept”
Can a IUL be structured to work properly regardless of market fluctuations? The problem with most people is they don’t understand what’s wrong with their car before they take it to be fixed. Therefore they don’t know what they don’t know. You have to educate yourself.
That is the truth, most people don't realize the problem til it is too late. But the reality with IUL is they feel like they bought a new Luxury SUV when in reality, they bought a 10 year old used car that was cleaned up and made to look nice...but then breaks down soon after leaving the used car lot....
Depending on what you are looking for.... We work with many different companies do be able to help solve many different needs and challenges. LIFE180.com/clarity-call
Some things your right and some things your not. Whole life pays is more in commissions than whole life because I don’t write it at target premium. I want to help my customer as much as possible.
I am correct on everything I stated in this video. Whole life doesn't pay more in commissions. Plus, your comment makes no sense. Re-read it and you will know what I am talking about.
I ride a motorcycle and i want a insurance that will pay my parents if somethings happens. With all my research ive came to do either term or IUL, idk what to do or what to go for
The guaranteed column for an IUL is zero %. If the S&P is negative for 30 years, your insurance policy is the last thing you will have to worry about. The insurance needs to be minimized. If you are using paid up additions to juice up the cash value in whole life you are using life insurance as an investment. The cash out feature in a good IUL that credits interest back of the loan and zero's it out is much more efficient vehicle. Agents that run illustrations at 8,9,10% will have disappointed clients. As long as the illustrations are in the low 6% range thi gs are good.
This depends on the individual. We focus more on financial structure than specific investments. You shouldn't invest or save in anything until you understand WHY you are doing it for you....Align your money with your values and beliefs.
Do you think that an IUL never makes sense, or just that the benefits are oversold and that it can bite you if you don't fund it seriously? Would you agree that most of the IUL complaints and poor performance correlate with people who aren't striving to max fund it while minimizing the death benefit? (i.e. the $200 per month contributors). I think if I end up doing an IUL, it would have to be with the plan to max fund it in the minimum time allowable (~5 yrs, to minimize the cost of insurance), and then eat the admin fees while striving for positive returns in most years.
IUL never makes sense for cash value purposes or Tax Free Retirement purposes. There are use cases for certain IUL 's that provide guarantees through riders on the death benefit. The only caution to any of these riders you need to be aware of is that they are taken away immediately once you touch the CV in the policy...so you need to know what you are using the policy for....
Max funding a policy doesn't eliminate the fundamental flaw and risk inside of the IUL to the policy holder.....wait til my new book comes out, it will explain all in detail
I would add, as long as structured properly AND with the right expectations. My issue with IUL is NOT the product. It is the horrible assumptions agents are giving clients....the 6.4%+ illustrated rates and no clarity on how fees and cap rates can change. Structuring an illustration min death / max cash value is a start. But then you need to set the correct assumptions in the policy to see how it really performs.
@@LIFE180 I am just wondering why an assumption above 6% seem unachievable to some. IVARI, posts it's performance on it's website and it clearly says there that their UL (with bonus) with Index Interest Option averaged 12.9% net at least for the past 10 years. And I am seeing those to be real based on client's statements. Wouldn't this be a proof that indeed above 6% is achievable with IUL's. And to add, IVARI guarantees, their policy fee at Cdn $95 and as well as COI (that's in the contract) and they don't have a cap or floor.
@@glsrider I can't speak to IVARI as it's a Canadian product and it may have differences than in the USA. Send me the agent guide on it to Chris@life180.com and I'll check all the ins and outs.
Dang it! I've had my policy for about 2 years. Are you saying it WILL serve it's purpose of it's properly funded? I'm trying to figure this out. I don't know if I should stop funding it now, keep funding it or what. The consumer's challenge seems to be finding someone who actually understands these policies and is honest about making it work the way it was intended or getting a lemon.
Treat the cost of Insurance the same add it all together and make it one level number. Then work out the math. Plus there are ways to lower the cost throughout the policy.
I need life insurance. I need $400,000. Burial expenses and money for my grandchildren. I have already given miney to my children. What should I get and where do I get it?
There are a lot of variables to that question. Set up a clarity-call with my team and they can guide you through a process to see what makes sense LIFE180.com/clarity-call
IUL has evolved since filming this video...so have the lies used to sell it. Check out the newer, updated version:
th-cam.com/video/e_wWDMTDD4I/w-d-xo.html
6 Lies Used To Sell IUL In 2024
First, I want to say that I appreciate several of the pieces of information in your videos, especially the sunsetting of lucrative bonds putting pressure on the insurance companies to chase the return.
That said, I believe your broad-brushing and generalisation of IULs borderlines "straw-manning", where you don't apply the same intellectual consistency and nuance when discussing IULs as you do when you discuss WLs. This in turn undermines your overall credibility. Here's how:
When you're breaking down and explaining whole life policies you show illustrations, and you show "the good, the bad and the ugly" among different whole life policies. You're allowing yourself to be nuanced by explaining that a whole life policy needs to be PROPERLY structured, and then you show examples in some of your videos, ranging from "bad" to "best". This is great, and is in line with my own experience comparing multiple policies from multiple companies before I landed on our current whole life policies (Big believer in whole life here). In my personal experience the State Farm policy wouldn't break even until year 30 (horribly structured), Northwestern Mutual's wouldn't break even until year 15 (better but still too pricey), whereas Penn Mutual would break even in year 5 (very well structured policy, mirroring closely the optimal whole life policies you've shown, shoutout to Jaden Zubal!).
When Dave Ramsey and others criticise whole life, you'll allow yourself to point to those bad policies and say: "yeah, if this was the policy, I would AGREE with Dave Ramsey that THAT whole life policy is bad". But then you would say: "Here's how to do it PROPERLY" and show how.
You wouldn't appreciate the broad brush generalisations using a bad whole life policy to justify that ALL whole life policies are bad. You want nuance, show the gray, show the good policies and the bad ones, and why they're different.
Yet, you do the exact same as Dave Ramsey and others criticising whole life when you discuss IULs. Just like there's a broad range of whole life policy variations, there's the same for IULs.
And yes, there are some pretty bad ones out there. And yes, there are some agents out there to line their own pockets. But there are some IULs designed with the same approach you recommend for whole life.
In my view it would be intellectually honest and consistent of you to attempt to STEEL-MAN IULs by not letting the BAD products speak for ALL IUL policies the same way Dave Ramsey and others speak of whole life.
You said this about Curtis Ray yesterday: "“.....Curtis Ray are 2 of the most dangerous people when it comes to your personal finances….”.
Yes, you're meeting with him to discuss, and hopefully both of you will benefit from the conversation by having truly open minds, allowing the facts to decide, but I think it's "sensationalist" and unproductive of you to conclude publicly about Curtis Ray before even having had that in-depth conversation with him.
My advice?
You roll your eyes when Dave Ramsey and others take a "State Farm whole life policy" as "the golden example of what whole life is" and use that as a straw man to say that ALL whole life is bad.
Don't "Dave Ramsey" your approach to IULs by cherrypicking the bad IULs without having ALSO first given the people that PROPERLY structure IULs the chance to give you the details, the performance that matches the illustrations.
That's a fair statement. I have done plenty of videos on the good and bad of whole life insurance and why it has a bad name in the past. You can find in my channel if you want. It's there.
Secondly, I hope I'm wrong on Curtis. But as a whole, I am not simply using a couple bad companies and broad stroking the entire Industry. I am looking at the product from a place of principle and WHY companies are going that route instead of the whole life route. It's because the insurance company is safer and you the insured take on more risk.
Show me an IUL policy you have written 10+ years ago. Show me the initial illustration. Now Show me an inforce illustration. The illustration for the sale will outperform the inforce illustration every time. I've looked at HUNDREDS of these.
I am going to be doing many more videos. Some more technical in nature. Some more opinion driven. Much of my problem with IUL comes down to my philosophy of the roll insurance should play in someones life. It's not meant to be an investment....period. in fact, the industry as a whole is coming down with regulation changes BECAUSE so many agents are misrepresenting IUL'S.
All that said, I believe there is a reason whole life agents also get a bad rap. Most agents don't know what they are doing.
Furthermore, the IBC people of the world don't get it much of the time either. I think IBC is 95% on the money, but a lot of their math doesn't add up.
At the end of the day, I am just one person 🤣 I can only make so much content so fast. Keep subscribed and you'll see. I appreciate your input and I agree with much of what you said, so I will make content to keep it clear on my full spectrum perspective as I think you're right- that will serve people best
My main thing on Curtis Ray that I have a challenge with is using policy loans to buy more insurance to create Arbitrage. I would be SHOCKED if companies let him do that because it puts a TON of financial stress on the companies reserve requirements...
In addition, while it may have worked during the greatest bull market run in history, I don't believe it'll work in a flatter economic environment because there won't be arbitrage....there will be additional loan expenses eating into the performance of the CV. Tap that on top of the nature of the insurance companies ability to change expenses and fees and cap rates to generate revenue for THEM, it's a dangerous combo.
The fact that IUL agents want to dismiss those facts seem very self serving to me.
I've sold more IUL in my life than most people ever will... I'm just speaking from experience. And sharing my story. If you think I need to do a better job sharing both sides, I appreciate that input and will try to make content both ways....
@@vangustia I have sold IUL's from 6 different companies. That really has nothing to do with anything though. How the foundations of IUL's work is the same with every company. The principles and concepts are what they are.
@@vangustia the difference about my view of IUL is that there is actual math that shows IUL'S never perform as they are illustrated. My issue isn't with IUL, it's with the expectations they are sold with.
Glad I saw this video. I used to work for a company that sold IULs. They pushed them heavily on the employees to the point I’m fairly certain I was the only person working there without one. I always had a feeling that the math wasn’t adding up, but the way everyone was so pro-IUL there made me feel like I was wrong. Glad to know my instincts were right and I didn’t buy into their lies
You hear one thing from 1 guy and you hear something totally different from another. Why don't you do some independent research then revisit the topic. Especially when the person totally hates something. What are the chances they will say anything positive? 🤔🤔
So life insurance policy do you prefer?
The dude sells whole life he talks bad about a product in which he doesn't sell because his company doesn't offer it or because he makes less commissions selling it, definitely do independent reading and investigating
@@lemarcusbrown1708Did you purchase this insurance?
@@lemarcusbrown1708you wrote a lot but did not help… if you know she might be wrong, why dont u share the right info with her.
When structured correctly, agents earn much less commissions on this product. You reference agents contracted commission structure, not what they make on this particular product which is based on target commission. Many of these policies outperform illustrations. You need to address the real problem with this product, which is structure and funding...
Actually, IUL and WL can both be structured where the agent makes less and more CV goes to the client. However, IUL pure commission rates are much higher across the board than whole life commission rates.
Structure and funding are important, but you can never eliminate the risk on the IUL side. And AG49B coming out is going to change a lot of sales practices for agents that sell IUL for retirement income. Not going to be able to illustrate positive Arbitrage anymore, and income dropping by 50%...exactly what I've been saying for YEARS
Agent contracted commission is relevant only to a certain extent. IUL pays based on target premium with a smaller percentage paid on overfunded premium. I don't understand the relevance of your comment. It's a top down situation. PHP has likely a 160%+ contract at the top. That's getting paid somewhere. Starting agents at 30% and making them split deals with their upline who are already getting paid an override is ridiculous....
How do you structure iul or whole life if your not fully educated on these policies so you know how you want it structured
Thank you for making this video. A MLM person has been trying to get me to buy Transamerica IUL for several weeks now; including trying to get me to sell it with them. I never invest in something that I don't understand. To date she has not been able to answer my questions about guaranteed income, who makes fees, what amount and when and the overall expenses and constraints/flexibility of the policy. She sends me snapshots of illustrations with $11M death benefit after I have explained repeatedly that I do not want a large death benefit (no kids do far). I just want another income stream in retirement. Your video has confirmed that my hesitation was the right thing to do.
That's because she works for WFG and they don't train their agents on how the product actually works because of they did, they wouldn't be able to have as many agents selling it as they do because people have morals...
Happy the video helped. Good on you for making sure you understand all the details for yourself before putting your money into anything
Hello @ktessentialstv991. I too am glad you didn’t but into transamerica. I work with another agency and was able to successfully move five clients over to our IUL because I sat down with each one of them and was as transparent about the fees, face value and what they would be getting with their policy with us. Their previous agent just signed them up for an IUL and didn’t go over anything. When I made my initial contact they all were unable to tell me their face value of their old policy’s. Plus they didn’t even know about Living Benefits.
@@LIFE180I'm considering joining an MLM to begin my journey as an agent. Is there a way to be an agent with an MLM and be a great agent that writes policies the 'correct' way?
@@cali.songbird I mean....not with an MLM....that's why we created our IMO...to be a great alternative to MLM's and give same benefits of building without the requirements....but really focusing on learning the products.
Agent.life180.com
Thank you for this video. I had a smooth talking non-fiduciary 'Financial Planner' try to convince me to buy this product to fund college for my kids. A little voice in my head kept whispering to me - "Not so fast". His big selling point was the 'safety' angle of having so much insurance. Glad I came across your video!
Glad it helped! IUL for college planning is very dangerous. Especially with the surrender period considerations on top of all the other risks.
One thing he doesn't mention is that the cost of insurance with a standard WL policy is higher than those in an IUL. Next he says "The policies never perform as they will." Well, I've told my clients that it's a guestimate & nobody knows what cash will be there in 20-30 yrs. And if he believes that they don't perform then he should tell that to one of my clients that had a premium of $300/mo, & paid for 9 yrs & has $41,000 in CV, after expenses & I recall seeing the numbers that the S&P was ZERO for at least 2 yrs. Maybe I should call the insurance company & tell them they made a mistake & the client doesn't really have that amount. It's always nice to make decisions based on theory but I'm making comments based on facts.
You should submit that case for the #IULchallenge. It's only 9 years. But if they are only paying $3,600 per year and have $41,000 after 9 years, I'll give you $2k. Just show the original illustration and an in force.
Not saying it isn't "possible"...just saying there's about a 1% chance...and that's not the kind of odds I like to give my clients.
I don't know what you mean by "I'll give you $2,000.) I never did an original illustration because I presented it on just the idea of a tax-free income, not what amount would be there. One co that tried to recruit me said I was doing my clients a disservice by not doing an illustration but I told him I thought it was a disservice by using one because no one knows what will be there. But today most companies require an illustration with the application.@@LIFE180
I have another client who also has a 9 yr old policy, with a $400, premium & a DB of $194,000 & has a CV of $43,500, after all expenses. So, if it's done right, it is very possible. @@LIFE180
Let's be honest the average client believes the illustration is actually how the "investment performs"
@@edsvids It is how it works but the results are strictly hypotheticals.
To answer your question at 5:40, they can do all of that by generating more returns via indexing. IULs use the market. The market mostly goes up. Not participating in the market is like turning down a free bus ride and saying no thanks I’ll walk.
The problem is, the market performance really has nothing to do with the performance of the policy. I'd be curious if you can explain why that is the case?
My Nationwide IUL is out performing the illustration but one of the best parts is when I borrow from it to buy another asset to create more passive income my Pacific Life is also out performing the illustration so definitely depends on the company
You obviously haven't had it long....which means you're still in surrender period. Give it time.
@@LIFE180 Its not about the surrender period. It is about how the market performed in those years since IUL's indexed strategy refers S&P 500 or high cap multi index etc
No offense, but you sell whole life, which I know why whole life is a promised return of about 3-4%, but the main reason is because whole life commissions is so heavy no wonder why you hate on IUL that makes sense
My agent used a slightly more than 3% rate when she did the illustration with me and my performance has be much greater. And if I remember correctly the historical number is a bit higher than 7% which helps explains. Plus and more importantly, my agents, and I know many agents do too, designed my policy such that the insurance policy I'd buy decrease as I get older therefore the insurance cost won't keep increasing much (people typically need less protection when they get older with less debt and responsibility so it makes sense); so the cost part won't eat into your accumulated money especially you will see more significantly compounding interest come out. I overall found IUL a great tool, and better than whole life if designed well.
All I can say is that I hear those responses all the time and they still have problems. 7% is market history avg, NOT policy return avg after fees....
All the other comments mean your policy will be better than most, but when you start taking loans, it'll be really exposed.
14:20 to 14:22. You just said it. If the policy is not structured correctly or if your agent doesn't know what he is doing....
So if it is structured correctly and the agent does know what they are doing the opposite is true.
My question is why would something that is supposed to be good for the client be structured improperly. It's sounds borderline criminal to me.
Because agents don’t know what they are doing and wasn’t taught properly
@@gorgeousfrazier5903 there are more good agents out there than there are bad ones. It also has to do with the leadership and training. Stay away from the MLM's
So true one, I read money, wealth, life insurance. I knew I wanted one, and it took me a min to choose a company, and the life insurance agent was very knowledgeable and helpful. I'm very happy with my account, definitely exceeding the guaranteed cash value
@@BatmanWins2024 what company did you go with?
Lost about $700, Had a whole-life policy of $350,000 for $66 per month that was convertible to a UL. Once it converted, the policy's value went to $135,000.00, and they wanted $308 per pay period to put on the investment /savings side. When I bought it, the agent said it would just convert at the exact cost, and I would pay into the savings side. Just lies.
Sorry you experienced that. I hope you filed a complaint
whole life and iul's are bad
Out of curiosity, what was your age when you got the whole life vs the universal life and was it a universal life policy or an index universal life policy? Did you look at the illustration prior to signing off on it (this is a mandatory requirement) and was there a difference in underwriters rating from the whole life vs when you go the universal life policy. I ask because a $66 for $350,000 whole life policy (especially one that is dividend paying) is darn near impossible (Im a broker) unless you got this policy decades ago. Your decrease in death benefit and increase in premium sounds like they did a minimum death benefit, maximum cash value concept. That is ideal for life insurance so that most of your premium is going to the cash and the bare minimum is to be allocated to the cost of insurance. I love if you could clarify though.
@@mikej3571 Lol, let me guess?... Primerica?
Great video. Just educated me more on all the reading I've done regarding IUL's. It sounded like "The Goose That Laid the Golden Eggs" and I thought, I need to have one myself its so good.
That being said, thanks for your honesty about "hey if I didn't know I would too." Yep what you described about "Whole Life" being the only way to GUARANTEE what you want happens happens and then the "controlling the variables" part and not complicating your "Life Insurance" was the most to the point part about the risk of IUL and it just NOT performing.
Thanks for the video and will be studying and looking into the Whole Life side of things
Happy to hear it was helpful. Check out:
The Power of Whole Life Insurance: th-cam.com/play/PLrRnvQl4pMjhz0I2DjIvIhdC5dpYDJn6s.html
Will do! Thanks for the playlist link! @@LIFE180
This guy is only talking about terrible agents that don't know what they are doing. I explain all of the fees to my clients and i actually know how to structure these properly. And FYI my commission on whole life is much better but I sell IULs because it's better for the client He us just trying to push his products.
In my opinion no matter what IUL’s are still a win win situation because even if the investment “ cash accumulation “ side does not work out or performs poorly . The life insurance portion is still guaranteed for a lower premium than what you would get for a whole life policy .
Factually untrue... The net cost of an IUL over the LIFE of the contract is more than a whole life policy.
The insurance is NEVER guaranteed - UNLESS the guaranteed column says it is in the IUL illustration.
@@LIFE180 whole life is more expensive than IUL, Whole Life is the most expensive insurance one can get.
@TheOpinionSports simply not true
@@LIFE180 have you done a video breaking down the cost of both? If not I would like to see a video on this. Take two policies with same face value and surrender period if that’s possible and break down the internal charges inside.
@@TheOpinionSports I will do a video on that. First off, whole life doesn't have a surrender period like IUL does. There is no surrender period for whole life policies. But I will make a video on IUL vs whole life
The thing that sets off a red flag is downside "protection." Downside protection has counter party risk and the insurance company is bearing that risk. You can't exercise a put on someone who is bankrupt. The market makers can't clear all the options when we have something like the Great Depression.
the reason they say there is a protection at the bottom is because there is a cap at the top, meaning they cap it at about 15 % so if market hits like 50 % upside you will be capped at 15% and they keep the rest.
@@rodolfoaraujo118exactly
I have had IUL for a couple of years now, and I'm grateful for it.
@@rccgreh which company?
Thanks for exposing the IUL.
Hello all, when looking at life insurance you should look at their ABRs or riders that come with the policy not all companies offer the same riders. Some offer only 4 some as many as 18.
The ABR's are only as strong as the policy being in force. That's the trouble with IUL.
Is there a way to cancel an existing IUL to whole life without penalty ? Say the IUL has only been started 3 months (3 monthly payment so far) .can we transfer the face value or part of the premium payments to a whole life?
set up a call with the team to see if they can give specific guidance:
calendly.com/_life180/claritycall
Do not transfer. All of them have there problems.
No not one is perfect
Man, no matter what you get, it just needs to be properly structured. Both are fine products.
Why in the heck would you want a WL?
Sounds too good to be true when the agent explained to me. Im glad i did some research on youtube. Thank you for the video.
You are very welcome. Glad you found the video, too!
So there’s no fees in WL?? The dividend that is illustrated in WL is also subject to all of these policy costs you mention. So if a Dividend is showing 6% what’s the actually amount being creditor to the CV portion of a WL contract after all of these fees ?
Thank you brother. I sell whole life for infinite banking purposes
Looks like IUL pays around 6% -7% annually after all fees. When treasury bills get up to 7% UIL’s become essentially useless. I think insurance companies know that and are trying to push hard right now. Too many asterisks and fine prints for essentially a 7% bond.
If bills go up that high, IULs will go higher, also that would be the least of anyone's worries.
20yr average is 9% after fees thats a great investment and creates your own bank
What are all the benefits vs disadvantages? I was looking to use it for borrowing to buy assets. Basically put in a certain amount per month grow cash value and borrow from I think they said death benefit use the loan to buy real estate, dividend stocks etc. is this a good option for that and how do I properly have it structured? I use to be a life insurance agent but universal life kinda confused me.
Exactly my thoughts. I see no answer to your question also... hmm
I've owned whole life policies for years, and I frown on borrowing against them idea. I have done it, and I think it has worked for me. But the only reason it did was by way of the success I've had in my other investments. The life policies were good in that I bought them when young and I didn't know anything about investing. Also, Roth IRAs hadn't been invented yet. Now I'm flush in all my accounts (401k-IRA, 401k-Roth, Roth, taxable, and I have whole life policies for death benefit, so I really question the investment value of life insurance. I do like having the death benefit. Find out how to invest as early as you can, and you won't need to borrow money from yourself if that even makes sense. You do have to pay back the loans with interest or you're pretty much screwed. Just remember if you don't get a great return on the money you borrowed you're up a creek. You can't just say "ah well, I only owe myself so it's no big deal". The consquences of not being able to pay it back are your policy lapsing or taking a huge tax hit.
From IUL If you have good enough cash value you can get upto 90% of cash value as loan. You need to make sure cash value is not going down so that policy is not elapsed. Once you paid all your premiums there will b 0% interest on loans otherwise there will be 0.75% to 1.25% interest.
I just got a call from the lady, she works at Columbus life insurance she said. Is that real company?
Great video. I have an agent/advisor trying to sell me indexed universal life and the illustration shows me over funding in first 5 years and then him borrowing the cash value out of it and plowing that money back in as premiums to even further accelerate the growth. In the end it looks like the loan and interest due eat up the cash value and leave me with a small death benefit. He bases it on a 5% growth rate but says he has to show that but really manages it to get way more growth. All sounds great but not for me. Especially after this video.
Be VERY VERY careful of that strategy. Lots of land mines that can blow up in your face and really hurt your finances.
@@LIFE180 yea. Thanks. I am not doing it.
Get a new agent. He’s not fiduciary and probably has you in expensive American funds too. Any one that is trying to “sell” you anything is not a financial advisor.
Billy . Tale a look at the surrender charges 15 years?
Loan creates interest that stay in your account and add up over time.
It seems they didn’t educate you well and it wasn’t designed correctly.
I sell IUl with living benefits at no charge .. contact me . IUL and Investment properties are the way to go..
Thanks 🙏
Do you have opinion on the living benefits of IUL’s? Can you have n and whole life?
living benefits are one of the good things about IUL, sure. However, they are only as good as the policy. If the policy has funding issues, the living benefits will suffer, as well.
Whole life insurance offers living benefits just that are just as solid as IUL. I think that is one of the most ridiculous elements of uneducated agents. I hear from so many potential clients who were looking into both IUL and WL that tell me their IUL agent told them WL doesn't even offer living benefits. IDK if the agents are just lying or if they are really that uneducated? Either way, it is sad.
What do you recommend at age 57 to get insurance to leave the family around $500,000?
It really depends on your cash flow, and the rest of your financial plan. We would be happy to connect over a clarity call and work through it with you. LIFE180.com/clarity-call
So, the first time I heard about IUL was in the 90s. I made a spreadsheet of the S&P500 rates of return per annum. In a corresponding column, I put the IUL match, or min or max. The yearly returns over 3 decades were closely matched. The upside to the IUL is that you never go backwards and have to make up the losses. I saw my 401k lose 40% in a year. I didn't recover in a year. To rebutt your commission accusation, in an IUL where there are PUAs to build cash value, the commission is only paid on the insurance portion of the monthly payments.
Maybe you could show an actual statement of a disappointing IUL and give all the background. Did they make PUAs? Did they take a loan and not return the cash value? Compare the illustration to the actual outcome.
Lea, there are no PUA's with IUL, PUA'S are a whole life component. I have shown lots of videos with actual illustrations to show the problems. This is just 1 video on over 100 I have done on this topic.
I’ve seen a lot other videos on IUL here on YT, and almost ALL agents comment and say -- “if/when structured properly..”
I call BS! Is it a training issue or the agents just don’t care to structure it properly… so they can make higher commission?
The problem starts with the insurance companies. They train agents and leave out crucial info. That's where it starts.
But some agents absolutely know what they are doing in deceiving people.
Anyone that tells you IUL is good as long as it is structured properly....ask them to share a policy that is 10 years old and compare actual performance to how it was illustrated when sold. They won't do it.
My new book is coming out later this year: IUL Exposed. Be on the lookout
You said that during the period of not gaining money there is still fees, but what you don’t say is that having an IRA you loose money and still have fees
Sure, there are fees with the IRA, too. I'm not saying I love IRA'S or 401k's....I don't. But IUL agents that try to position IUL'S as something they are not is disgraceful. IUL'S will never achieve a NET return in the competitive range of an investment account over 30 years.... it's all smoke and mirrors with positive illustrated Arbitrage....which is going away with regulation update in 2023.
@@LIFE180 at the end of the day in my opinion the not being taxed upon retirement with an IUL or annuity definitely is better than getting hit with a 40% tax as IRA,401k,403b’s do and people aren’t informed on that at all.
@jose garcia at the end of the day, COI risk inside of an IUL is just as bad if not worse than taxation risk. IUL is misunderstood by the agents that sell it, therefor misrepresented.
Thanks for the info. What would you say to someone who says - life is actually shorter these days - so we are going to outdo the insurance companies simply by filing more living benefits claims and even dying earlier - hence making IUL's worth it - because the clients are actually winning over the insurance companies ? Would love your thoughts on this narrative.
Insurance agents actually get paid less for selling IUL’s. They don’t get paid off of the Index aspect of the policy. They only get paid off of the life insurance part. Especially when the policy is set up for more of your monthly premium to go towards building cash value.
They get paid less? No.... all things being equal, IUL agents get paid more to sell IUL compared to whole life.
@@LIFE180 I am a licensed broker in over 10 different who’s contracted with over 20 different insurance company’s, this isn’t true I don’t where this information is coming from. What insurance company pays more? Because varies company to company and I still haven’t seen one that pays more, the reason this is because WE ONLY GET PAID ON THE LIFE INSURANCE
@@LIFE180We don’t get commission on the percentage of premium that is tied to an index fund, so tell me how I’m the world would we get paid more from IULs vs a whole Life policy?
@joey Baer I will answer, but before I do, I want you to answer technically how you get paid commission on IUL. What percentage commission for what portion of the premium? Then explain how it works with whole life.
These are things you should know 100% BEFORE you go making comments about stuff you don't fully understand
@@joeybaer6140 100% of what I have said is true. See my other comment. Break it all down then. How does it work? Go through the 4 lies one by one and tell me where I am wrong. Oh yeah, you can't. So maybe instead, you should open up your mind to learning something.
What if iul is set up the right way? Or is there no way it cab be effective at all?
IF it is set up properly, it could potentially be a a permanent death benefit. All that goes out the window when you start leveraging for income through policy loans
As a Financial Professional working for one of the big 4 Mutual companies, I vote what you just said in this video
Then you don't know how to set it up with cash value and low DB
Broken down what I hear is his big complaint is that the fees take away from the investment and this is not explained up front. And this guy Doug Andrew was selling something to his clients that most agents would not sell in general. THe problem with Doug Andre it looks like the problem was with him and not IUL policies in general.
So what do you suggest?
It depends on your goals, skills, and the rest of your financial picture
My grandchildren has Index Universal Life do you think I can switch this policies to infinity banking policies
Absolutely. Set up a call to do a policy evaluation and see if a change makes sense
LIFE180.com/clarity-call
Hi, what is the best company to buy whole life insurance?
Depends on your situation. If you'd like to have a clarity call to learn the best for your situation, you can use this link to set up a time.
Calendly.com/_life180/claritycall
It’s still a better product than a term insurance tho. Structuring it is all that matters.
It is better than term ONLY IF you never plan on using the cash value....then it is like permaterm....in fact, that is EXACTLY what it is
Thank you! Extremely valuable information. Wow, ...so much they don't tell you. So many ways to get scammed it seems. What's the reputation of Banker's Life universal index life plan? I think they tried to get me! Please advise, thanks.
Stay away
Bankers Life is one of the worst...
@@LIFE180 OMG!! Thanks!! 🙏
I lucked out. Just cancelled. (I hope) On the 29th day of my 30 days to surrender policy. They already took 2 monthly ACH payments in about 20 days. Took first payment before notifying me if approved by underwriting! Nothing I'm learning on my own, was presented to me by agent. Fast and loose. After policy was delivered, I asked for copies of my signatures. Agent said unnecessary, ...just signatures to confirm policy received. I asked to take a picture of signed paperwork. Again agent said, unnecessary. Just paperwork indicating policy was delivered. Very sketchy. So I requested refund, requiring full surrender. I have a different TERM policy (not Banker's Life) Perturbed at me for cancelling, the agent now berated me in a nasty reply..."hope you enjoy your term policy that only pays out 1 percent of the time, and becomes uncomfortable in 10 years." (End quote, Banker's agent)
How unprofessional. A bad experience.
Thanks again, love your videos and your resume. Exciting stuff. Congratulations! Godspeed!
Hey I just got an IUL and I’m second guessing it, my first payment isn’t until the 25th, can I get out of it without penalty??
Yes, everyone has a 30 day free look period. Call the company directly and cancel if you want. Just know you won't have any life insurance if you do. If that is important to you, I would work real fast to get other coverage in place. Let us know if you need help.
Like going from a pension to a 401k. My agent who is dead now was all about commission for him. Every year I called him when I got my statement, because I totally did not understand it.
That sucks, I am sorry. If you need help with anything looking it over, email Chris@LIFE180.com I can either help or have someone on my team help if you need...
You don’t invest money in things you don’t understand
Who should I go to for life insurance
Life180.com/clarity-call
Have a Convo to figure out which policy and company would be best for you
can u pl show some annual statements with your review?.. (mask personal info)
So is better whole life insurance for that term of "infinite banking"?
It NEEDS to be whole life for Infinite Banking. I have videos detailing why if you want to watch
I myself am researching IUL before I purchase or even should I purchase it. ty fur the info
I wouldn't purchase IUL, I would go with whole life. But absolutely do your research and make sure that whatever you buy is in alignment with your goals.
I can relate and agree that a lot of these agents either don’t understand what they are selling or they are motivated by the commissions. I bought into IUL with the hope of over funding the cash value in the early years but like you said the policy charges are quickly eating into my cash value and not growing as shown in the illustration. I hate that I may have to wait 10 years to cancel the policy so I don’t have to pay the cancellation penalty.
Sadly, I hear this kind of story every day....
what happened?
bad product
term insurance and invest seperately. whole life and iuls are a bad product
@@mikej3571 I have always thought that. What puzzles me why so many people are sold these products. I wonder if it's good marketing or good salemens able to sell well. They are the cars salemen of the insurance world. If they exisit it must make sense to a small subset of cases.
Woooow, that's scary to hear your story. I want to get into Cash Value Life Insurance to use it as my own bank but what I've learned in the content creator's post and your own testimony I want to know the best way to go about it going forward and limit losses if the illustrations don't add up the way they should year by year. What is the solution?
Now that Libor is out and SOFR is in how will that transition affect an IUL or Whole Life policy?
Shouldn't have much of an impact on whole life. The loan rates never followed Libor, they follow the Moody' Bond Index typically. Plus they are capped at 8% for loan rates at a max, so if rates continue to climb, whole life policies become more valuable.
@@LIFE180 @Life180 definitely appreciate the response to question new to you but, becoming a huge fan you share a lot of knowledge.🔥🔥
I just signed up for a IUL yesterday 😓 I want out now. My whole approach was making sure if something happens to me that my kids are well off. I feel like the agent persuaded me to get IUL instead of whole life. Should i just contact her and tell her im out?
Yes...I converted my clients from IUL to Whole.
You will still get death benefit from IUL. If your prime purpose if to have life insurance then IUL is good option. I think you have 30 days to cancel.
I would suggest you call the insurance company and understand the policy, try to have it handy to follow what the agent is telling you. I don’t think IUL is as bad as he makes it seems. I think is much better than whole life. I sell them all. Term, IUL, WL and they all have pros and cons but it depends on the age and what is your purpose for having it. I’m always reviewing policies for clients some time replacing them and sometimes just calling the company with them on the line and asking key questions.
This is such a great video I totally agree. Thanks for explaining them right .
Glad it was helpful!
As my Grandpa used say, "if we started an Insurance Company, we'd be billionaires in a year!"
Well, I don't know that I agree with that....insurance companies profit very small spreads over large amounts of money and long periods of time IF you are using a Participating Mutually Held Insurance Company.
Stock insurance companies, on the other hand, your Grandpa was right!
I agree with the previous comment in regards to structure of policy and also in comparison to a 401k which is not guaranteed as with any investment. 401k takes losses all the time but people still invest because the S&P and all the other stock options in America will never not make a positive swing. Also the money your employer put in a 401k gets eaten up in taxes with no death benefit. Miseducation and improper structure is the problem . Also the commission is only a portion of the first year which is pennies in comparison to what the gains are for the consumer or the company..
If this is the case, just show me a policy you have done that is 10 years old and performed as sold (since you structure them properly). #IULchallenge
So what is the purpose of an IUL? Now that we know what its not for?
IUL can be a great tool when designed the proper way for legacy planning. I have a video coming out on this exact topic next week. I also have this video: th-cam.com/video/3vLLE275geQ/w-d-xo.html
What’s your assessment of Foresters Smart UL product? Not marketed as an IULE. Thanks.
It's garbage. I have always been a bit skeptical of Foresters. But now they have proven they are in need of creating more revenue. Make no mistake about it....the only whole life companies that sell IUL are companies that are looking for another profit center to prop up other lines of business.
Arent the fees overtime significantly cheaper than what you would pay in income taxes with any other retirement accounts?
No....that's what they would like you to believe
My dad bought a UL policy on me 25 years ago when I was 13. I’ve been paying the premiums for 10 years. What’s the math I need to be thinking through to decide to avoid sunk cost fallacy and just kill the policy? I think the death benefit is $250k which isn’t even one year of household income anymore.
If you would like to review your options with the team, feel free to use this link, they can walk you through everything
Calendly.com/_life180/claritycall
Check how much premiums total you paid and whats the cash value now. If you dont have surrender charges you can cancel it though
I’m my illustrations it shows the prior years performance. For about a decade or so and it performs well comparatively. Is this deceptive as well?
Yes, that is deceptive, because it shows performance based on current assumptions of cap rates, participation rates, spread charges or one of the many other levers.
It all changes when they increase the fees and reduce performance of the policy over time - which they will do....they always do
@@LIFE180 you know they have been chasing me for almost 1.5 years but I keep delaying bc something just didn’t feel right.
ALWAYS trust your gut, and the smart friend who knows what they are talking about lol
Thanks for the clarification!
@@EdwardVarnerDon't be deceived
@LIFE180… I’m 30,000 into my IUL. I’m a single mom and active duty military. I don’t know what to do. The surrender value is only 7,000USD if I discontinued the product. It seemed like an amazing product when I got it but it costs me $300 monthly. The death benefit is $800,000. The idea of security for my children if I die is priceless. What advice can you give me. Also, when I got the product, a financial advisor told me it was a good deal. 🤔
I would suggest to set up a call with my team and they can go deeper into it and guide you through potential options.
Calendly.com/_life180/claritycall
Hope that will help
What did you end up doing?
How many years you need to pay premiums? you dont need to pay surrender charges once premiums are paid.
So should I get a whole life insurance or term life? Also should I go with something like Globe life or primerica? What are some good amount. I am a mom of 4
Hey Nikky,
These are all questions that vary greatly based on your personal circumstances. Happy to have you speak to one of my coaches to give you some guidance.
Calendly.com/_life180/claritycall
I would recommend speaking with a broker who can shop around the rates and companies for you. Life insurance is based off your age,medical history, and financials. Also whether you should go with whole life or term also depends on your age and goal with the policy.
@@LIFE180what about GFI?
@@DadVSon23 GFI is just another IUL IMO doing the same stuff. It's a spinoff of WFG, that's it. Newer company, but already many people leaving them who joined
Term life will give you the most protection for the least amount of money. Get a level term product so your premium will never go up for the life of the policy. Then set up investments with a licensed agent so that you're life insurance and investments are kept separate. Life insurance is not an investment product
What should i buy?
Depends on your needs. Set up a call with my team and they can give you some guidance. calendly.com/_life180/claritycall
Thank you for this video. First and foremost Agents need to be selling based on need and not the underbelly of the illustrations. I worked for I think the same company you came from but I could not or should I say would not drink the Kool Aide. Thank for saying insurance is for insurance purposes, not for cornering the market. Stay well.
Who can I hire for some legit consultation that won’t be selling me anything? I’m so confused about what to get and idk whom to believe. I keep hearing different things
Well....first things first, look at regulation changes and ask yourself why they would be making them.
Then check out LifeProductReview.com. it's the most detailed info on the internet. The guy who runs it is not licensed and does not sell anything.
Keep digging deeper on HOW the policies actually work internally
For the rich
If you need life insurance, get a term policy; you can do 10/20/30 years. If you want to invest your money for retirement and don’t have the options for 401k/403b through your employer, then open and IRA or preferably, a Roth IRA. You can open either of those through vanguard or fidelity. Lastly, if you are investing for your child’s education, use
A 529. Let insurance be insurance and investments be investments.
@@TrickyBoa my Roth IRA has been tanking for a while. Why would I wanna put more money into it. :/
@@FransceneJK98 what do you have it invested in? Should be going back up since the market has been performing better lately.
I have pension and 401k through my employer, whom with I also decided to do an IUL with. Is this smart or should I be putting the little money going into the IUL somewhere else?
How can employer offer IUL? are you sure about that?
I had it was cutting my profit potential greatly. I had a time line and got out when the penalty lapsed.
i bought IUL in 2014, my agent told me I can cancel anytime and ask for reimbursement. I did cancel my policy in 2016 and called the insurance company for reimbursement, the rep on the phone told me there's no refund.
Wow.....I'm sorry you had that experience...
Same here
The agent simply didn’t explain about the vesting period!! 🤦🏻♀️ not really the product that is the issue here.. in this case it was the agent.. so sorry
Sorry for your experience.Did you check your illustration before cancelling? It will show the surrender charges. I think in your case first 2 years you get zero cash value if you cancel it. Please check it so that you will atleast understand how it happened.
Thank You so much for this. We had a conference call with someone last week and decided to do our due diligence and research and came upon your informative video. Again thank you for your honesty and knowledge.
Same I was going to sign the contract this week but I decided to do my own research. I felt like putting $2000 a month in IUL was too much I can invest that money somewhere else.
Now that interest rates are higher has this not reduced the risk, ie improve performance and returns for the carrier?
The equation on how increased rates impact IUL is far more complicated. Increased rates means increases to whole life performance, but not IUL. Increased rates will likely increase the options budget....but the options costs are also increasing, which is negating any potential positivity long term for IUL'S.
How much is the Brooklyn bridge?
🤣🤣😎
So what is better whole life or term?
Depends on your financial position and goals. I don’t believe in cookie cutter advice
TERM... Pretty much ALWAYS@@LIFE180
Man, I love you for this, but I already purchased an IUL. Can I cancel? What should I do? I don’t want it. I just paid my first month’s premium of $200 but I don’t want to give them another dime. Also, what insurance should I get? I’m 48 with four children I need protection. Can you be my coach? I know I can trust you.
You can cancel but I think you surrender what has been paid into it
Set up a call with my team, they can guide you through to see what insurance is best to protect your family based on cash flow. If you provide them your illustration or statement, our team can advise on your IUL and give you a best path forward.
LIFE180.com/clarity-call
I have IUL and whole life policies that I can sell, and I can say, for certain, the commissions for IUL are half that of the whole life insurance commissions.
Smh....if that's the case, you need to learn how to design a whole life policy.
Thanks for the clarity
You're welcome!
@LIFE180
Is it possible to sue? The guy who sold it to me in 2021, his license went inactive in 2020, so he’s not licensed to sell. His wife’s name is on the paperwork who is licensed but I never spoke to her. Do I have a case?
Absolutely, you can sue if that is the case. The company would be liable or there would be an E&O claim... If what you are saying is the case and you have proof, the company will likely just refund your money. That is totally sketch
@@LIFE180 the most proof I have is text receipts where we’re setting up a call, and other texts throughout the past 2 years asking questions about my policy. Hopefully that’s enough proof. If it gets to the point, I can always pull phone records to show I never spoke to his wife. I got 28K in there 🤦🏻♂️ hopefully I can get it all back. He’s the boss of the company with an inactive license to sell. Company’s name is Beal Financial Group ran by Brandon Beal the guy who sold me the policy.
Chris,
I really love what you are sharing. Is it possible to zoom with you? Thanks
Email chris@LIFE180.com and let me know what you'd like to Zoom about
Glad I seen your video man. So are you saying a Whole Life Insurance is better? It seems as if you can take out money or a loan from it to invest into other things, in the way IULs are pitched. Not sure if I'm making sense, I'm new to this
Buy term and invest the difference outside of policy.
Dave Ramsey explains this the best.
I am saying that IUL is never good if you are using it as a cash flow play. It can work if the only thing you want it death benefit, but that's it... I get so mad about IUL because they are so misrepresented.
Whole life does almost all of the things IUL is pitched as. Check out my book, cashflowhackingbook.com
This is an extremely short sighted view....and hurts a lot of people in many ways (but term and invest the difference, that is...)
@@LIFE180 - My sister sold me whole life policies in my mid-20s from NWM. Still have them and I like the death benefit, but I honestly don't get the cash flow aspect of it. If you borrow against them you have to have enough cash flow to pay it back with interest or you're screwed. I'm now financially independent because I was a Buffett style LT investor -yes buy and hold- but if you have enough assets someone will always loan you money. I no longer see WL as an investment, but I'm glad I have it even though I've no actual need of life insurance at this point.
Im confused if its so bad whybare the insurance agents putting theirnown money into the same product they are selling?
And like you said u were doing it for years...im just confused?
I sold IUL for 4 years before I realized it wasn't what I thought it was. The problem is, the insurance company only trains you on the sales side. How to sell it and position it to get more sales. They don't teach you the internal working and risks....the downsides.
Most people who are putting their own money into it as an agent simply haven't had them long enough to realize they are not what they think they are. Check out #IULchallenge to learn more....
@@LIFE180 This is true. Did you buy IUL when you sold IUL?
@@uma001 I had an IUL when I sold them, yes. I didn't know what I didn't know. The problem is, the story is compelling and they make you feel like it is a long term investment. By the time you realize there is an issue, it is usually several years down the road (4 years for me to figure it out).
Fees are front loaded but if you keep it long term (15 years +) you end up with way more than you put in.
Is that so? Have you seen this ACTUALLY happen? Or just illustrated? I offer you to check out the #IULchallenge - see if you can win $1000. Or maybe you're just being speculative like most IUL agents who don't really truly understand what they are selling? 🤔. Idk...
@@LIFE180 What @claudymaze is trying to imply is after 15 years or 10 years there wont be much fees if premiums are completely paid and compounding percentage increases
@@LIFE180 if you have a 300k cash value and the market has a 23% years which happens often you made 90k roughly
Can you make a video explaining the marketing for IUL having flexible premiums
Will do!
Unfortunately I wish they didn’t have flexible premiums, that is the #1 manipulator factor into ruining an IUL. The clients are convinced they can make whatever payment option they want (down to minimum) and their policy will run as illustrated. Can’t tell you how many underfunded policies I’ve come across because client was told by the agent it’s “flexible”
@@Bryan-om3wq yep! Plus, the whole conversation around the indexed return. They always talk about it pretty fees. Some big players talking and running numbers and marketing based on 6.4%, but at the end of the day, if the Avg is 6.4%, the IRR is far lower....
Somehow with whole life, everyone seems to call that fact out 🤔
@@LIFE180 the IRR is important regardless. Fact is an IUL doesn’t get enticing until after first 10-15 years. It’s so heavily fee dependent in first years of contract, the longer the policy the more edge shifts to IUL. However first 10-15 years a whole life looks more enticing because the premiums are leveled out.
Have also seen IUL sold as a comparison to term. Where they show that the surrender value can be used as a return of premium option after 15-20yrs
Is buying life insurance necessary? Is there something else to invest that is better than life insurance? I pay so much and I felt like I am wasting my money.
It really depends on what you are trying to accomplish. What are your values and beliefs? Do you value creating a plan that will help not only you during this lifetime, but will accomplish leaving a better life for the next generation?
Life insurance should never be seen as an investment...it should be seen as a savings alternative. I have a lot of videos that go into this concept in detail if you want to dive in. Just let me know.
@@LIFE180 that will be great! Thank you!
You left out the fact that after a certain age you will not be able to obtain term life insurance. You can also cash out an IUL as well as a Whole life policy.
I don't fully understand the context of this comment as it pertains to this video? Of course it becomes more expensive to get insurance as you get older. But what does that have to do with the lies used to sell IUL?
It would be nice that I like to see some table example or column policy that list out as an easy to follow-up.
I have many videos that do that. Check out the IUL playlist I have
Thanks for the information.
What are your thoughts about buying an IUL to cover estate taxes if it was inside a irrevocable life insurance trust? The “Roth for the well-off concept”
If it was simply for estate taxes, a single pay MEC IUL could be worth taking a look at. I would still look at whole life and compare the 2.
Can a IUL be structured to work properly regardless of market fluctuations? The problem with most people is they don’t understand what’s wrong with their car before they take it to be fixed. Therefore they don’t know what they don’t know. You have to educate yourself.
That is the truth, most people don't realize the problem til it is too late. But the reality with IUL is they feel like they bought a new Luxury SUV when in reality, they bought a 10 year old used car that was cleaned up and made to look nice...but then breaks down soon after leaving the used car lot....
Is the class action lawsuit only about IULs?!
It is all about IULs?!
Which life insurance company is good? Any suggestion?
Depending on what you are looking for.... We work with many different companies do be able to help solve many different needs and challenges.
LIFE180.com/clarity-call
Some things your right and some things your not. Whole life pays is more in commissions than whole life because I don’t write it at target premium. I want to help my customer as much as possible.
I am correct on everything I stated in this video. Whole life doesn't pay more in commissions. Plus, your comment makes no sense. Re-read it and you will know what I am talking about.
What? This comment literally makes no sense. Lol
IUL’s are life insurance NOT an investment.
Tell that to the uneducated agents selling it as a 401k alternative
But you can loan from it while still alive right and not have to pay back if you don't want
It's an option to get tax free gain. But you can do whatever is good for you!! I have done very well in it!
@@LIFE180someone is selling that to me, saying it's better than 401. I don't even have 401
Definition of investment-the action or process of investing money for profit or material result.
This is so helpful, answers all my questions, thank you so much
I have an updated version coming out on Sunday for 2023 regulatory updates, as well
I ride a motorcycle and i want a insurance that will pay my parents if somethings happens. With all my research ive came to do either term or IUL, idk what to do or what to go for
If you just want that death benefit, then term is the way to go. If you want to build any cash value, then whole life is the way to go
The guaranteed column for an IUL is zero %. If the S&P is negative for 30 years, your insurance policy is the last thing you will have to worry about. The insurance needs to be minimized. If you are using paid up additions to juice up the cash value in whole life you are using life insurance as an investment. The cash out feature in a good IUL that credits interest back of the loan and zero's it out is much more efficient vehicle. Agents that run illustrations at 8,9,10% will have disappointed clients. As long as the illustrations are in the low 6% range thi gs are good.
Cool story. I have plenty of facts that prove otherwise.
amazing ....thanks...any better long term investment?
This depends on the individual. We focus more on financial structure than specific investments. You shouldn't invest or save in anything until you understand WHY you are doing it for you....Align your money with your values and beliefs.
Do you think that an IUL never makes sense, or just that the benefits are oversold and that it can bite you if you don't fund it seriously? Would you agree that most of the IUL complaints and poor performance correlate with people who aren't striving to max fund it while minimizing the death benefit? (i.e. the $200 per month contributors). I think if I end up doing an IUL, it would have to be with the plan to max fund it in the minimum time allowable (~5 yrs, to minimize the cost of insurance), and then eat the admin fees while striving for positive returns in most years.
IUL never makes sense for cash value purposes or Tax Free Retirement purposes. There are use cases for certain IUL 's that provide guarantees through riders on the death benefit.
The only caution to any of these riders you need to be aware of is that they are taken away immediately once you touch the CV in the policy...so you need to know what you are using the policy for....
Max funding a policy doesn't eliminate the fundamental flaw and risk inside of the IUL to the policy holder.....wait til my new book comes out, it will explain all in detail
Any permanent life insurance will work if structured properly.
I would add, as long as structured properly AND with the right expectations. My issue with IUL is NOT the product. It is the horrible assumptions agents are giving clients....the 6.4%+ illustrated rates and no clarity on how fees and cap rates can change. Structuring an illustration min death / max cash value is a start. But then you need to set the correct assumptions in the policy to see how it really performs.
@@LIFE180 I am just wondering why an assumption above 6% seem unachievable to some. IVARI, posts it's performance on it's website and it clearly says there that their UL (with bonus) with Index Interest Option averaged 12.9% net at least for the past 10 years. And I am seeing those to be real based on client's statements. Wouldn't this be a proof that indeed above 6% is achievable with IUL's. And to add, IVARI guarantees, their policy fee at Cdn $95 and as well as COI (that's in the contract) and they don't have a cap or floor.
@@glsrider I can't speak to IVARI as it's a Canadian product and it may have differences than in the USA. Send me the agent guide on it to Chris@life180.com and I'll check all the ins and outs.
@@LIFE180 ok thanks Chris.
Again unprofessional stupid agent's
Dang it! I've had my policy for about 2 years. Are you saying it WILL serve it's purpose of it's properly funded? I'm trying to figure this out. I don't know if I should stop funding it now, keep funding it or what. The consumer's challenge seems to be finding someone who actually understands these policies and is honest about making it work the way it was intended or getting a lemon.
You can go to RescueMyIUL.com and submit illustrations for a free review if you want.
Treat the cost of Insurance the same add it all together and make it one level number. Then work out the math. Plus there are ways to lower the cost throughout the policy.
I need life insurance. I need $400,000. Burial expenses and money for my grandchildren. I have already given miney to my children. What should I get and where do I get it?
There are a lot of variables to that question. Set up a clarity-call with my team and they can guide you through a process to see what makes sense
LIFE180.com/clarity-call
If your policy does well the LIBR will be good. It can do well during the funding years. All policies do NOT blow up.
Also, whole life insurance is not an investment it’s also just a life insurance policy.
It's a savings alternative not an investment.