NEW IUL Updates Are Coming! Check out the updated video talking about it in my interview with Bobby Samuelson th-cam.com/video/nbrWJS7rHEo/w-d-xo.html or text IBC to 26786 to learn more
Why would anyone need a line of credit from a bank collateralized by an IUL or Whole Life policy if they could borrow directly from the cash value in the insurance policy ?
However, it only makes sense to do with Whole Life as banks won't give the same loan terms for IUL's. Because they know the risks are significantly higher. That's another reason I don't trust IUL's....because the banks don't trust them....
@@LIFE180 Of course...... But that is the point of infinite banking right regardless if its an IUL and Whole life??? Borrow against the cash value in the policy while the cash value still accumulates compounding interest?? Are you actually claiming it is better to take a line of credit from the bank vs a IUL policy loan because of the higher interest rates charged by the Insurance company ???
@@UnderTheRadarHighlightVideos ultimately it doesn’t really make sense to borrow at a higher rate when a bank could give you a lower rate. If your whole life policy charges you 5% but is only giving you 4% in guaranteed dividends then you lose 1%. Buffet’s rule is #1 don’t lose money :)
Wow! Interesting take. I have sold literly millions of dollars of IUL's and have drank the Kool Aid for many years. As I began to deal with more sufficated investors I began to see the benefits of whole life as a great place for "dry powder Money" and being able to be fully tranparent with clients rather than selling massive upside and avoiding the what ifs.. Appreciate the history lesson...
12:14 Could you clarify why the insurance company wouldn't take the spread if the markets go up 20%? What happens to that spread if the insurance company isn't keeping that as additional profit?
Good comparisons & very in-depth with how the IULs work. I like both & have both 🤷♂️ Ultimately though, I do believe that people should understand there is so much more potential outside of these policies rather than the irr themselves. I believe you’ve mentioned before leveraging these accounts into other Businesses, Real Estate. I think this should be the focus, not whether or not which one performs better because they both are not great internal ror products. I think the ideal strategy would include investing into the stock market (equities & options), whole life & then physical real estate / businesses. Removing Bond allocation all together & repurposing that allocation to Whole Life instead. This way you’d be diversified across the Stock Market, Whole Life (Principal Protected) & the huge upside of Real Estate & Businesses. Just my thoughts.
Agreed. Neither should be viewed as an investment. My issue isn't with IUL being bad...it's simply that it is miss sold. And people's expectations are way out of alignment with reality. My entire focus is using high CV policies to leverage for a guaranteed store of capital to use to make other investments better and to open up opportunity. More of an inflation hedged savings account. From that angle, whole life wins every time. But, I am passionate about helping people understand IUL for what it is. And I need to meet them where they are...which is either buying or selling IUL as an investment alternative- which in my opinion is dangerous.
And I agree with you... Using whole life as your storage vehicle...investing in equities (actual companies / stocks, not mutual funds) and having physical real estate is the best combo. Throw in some Crypto for long term as well (at least for me)
I’ve been approached by companies focused on IULs particularly Premium Funded IUL as I’m working to get my insurance license, as a newbie changing careers in their mid 50’s trying to figure out what’s best in IMO’s, what would your recommendation be? Selling IUL, Premium Financed IUL, Whole Life, Final Expense…. Etc… Thank you if you have the time to reply!
I think it is important to be clear on who you are looking to serve as a client. Will you be creating your own leads, buying leads, or relying on another source of business? Premium finance is a tough nut to crack right out of the gate. It is a huge learning curve unless you are really sophisticated and have very high net worth centers of influence. Final expense is the most commoditized insurance. Not a ton of fun to sell, in my opinion, but there are companies that will just give you leads....nothing I would ever do though... I would say whichever direction you choose, research and understand the products inside-out. Don't just follow the hype on either side. I love Whole Life personally because of the problems it solves for the people I am looking to serve - real estate investors and entrepreneurs. IUL is also not a great product for people in their 50's. It takes too long to mature, perform, and get through the surrender period.
Your comment regarding companies relying on IUL sales to fund whole life policies ultimately guarantees that they can't afford to adjust caps too low this would in turn affect the volume of IUL's sold which would negatively affect the whole life situation. With interest rates being so low over the last couple years they seem to bottom out cap rates in the 8% range. The cap should increase when the interest rates increase. If not then companies will most likely have some explaining to do. In my opinion IUL's do work given a long time to max fund them (young person whose ART is super cheap) even if illustrated lower than what they are allowed to do and then when it's time to start loaning out the money you change the plan to Option A to lower the COI. There is risk but much much lower than putting money in a vehicle (401k, 403b, roth) that is exposed to so much volatility not to mention the tax rates will be higher later down the road. I believe whole life has it's place but to me it's more of a supercharged savings account with death benefit attached.
You miss the point...they can reduce the cap rates of older inforce policies while having a higher cap for newer marketed products. It happens all the time. The higher early caps are essentially used and written off as a marketing expense. At the end of the day, the biggest factor to cap rates is the options market and the cost of options. That's why they are reducing caps. The bigger the IUL market gets, the more they create their own problem with option market competition. If interest rates go up, the index performance will suffer, which will also mean low performance. They have done well for a decade because it was the greatest bull run ever in markets. Traditional UL had same experience from 1981 - 1994. Ironically a very similar time frame. Wait and see....
@@LIFE180 Even in low decades like 2001-2011 wish show 2 crashes (2001 and 2008) IUL performed over 5% total in that decade. If you go to a Mutual participating WL policy and you are lucky to get dividends you MIGHT get 5% to 5.5% even in Best market performances decades. I personally sell both. The better product do's not depend on your analysis. It ONLY DEPENDS in the Clients goal. Trying to shove a WL to someones throat because is your preference is irresponsible. If you are not a business owner using WL to back up a loan a WL is NOT the best option for retirement and accumulation.
I'm a new agent and I am very grateful for these videos. I want to know the truth so I can best serve my people. I have a serious question here. So with MOO, the only way I can get my 49 year old client 200k in permanent coverage is through their IUL. All investments and indexing aside, isn't the permanent coverage alone worth it to get her this policy?? Their whole life maxes out at 40k and term is not permanent....
I'm not sure I am understanding your angle on this? Are you saying the max you can get with their budget of $XXX per month or year only gets you $40k of DB with whole life and $200k with MOO IUL? If that's the case, that could be a dangerous design that will lead to increased premium requirements in an IUL. It's hard saying without seeing it....
@@LIFE180 yes. I dont know if you have access to MOO's quote tool but she's 49 non smoker and it seems like the only permanent options are IUL and whole life. Whole life tops at 40k. I'm not sure if her premium payments will increase over time, I would like to know if they will before I recommend an IUL. I guess I can call MOO and ask? Where can I find the fine details about the policy? I've only been an agent for about 5 months and I've been wondering why no one knows or wants to talk about product knowledge. I really want to help people and I want to know everything before I recommend it. Again that's why I love your channel man, thanks for talking with me seriously.
Amazing video! Thanks for sharing your knowledge and experience Chris. A lot of friends we know bought IULs without knowing how it works and all the risks involved... I like your 2nd common sense: let’s bring an IUL policy and a whole life policy with a similar cash value to the bank, to get a cash value line of credit. We’ll know the difference right away. 😊
@@LIFE180 What's your take on the difference between whole life and annuities? I'm looking at a Silac product and it seems it has the same guarantees of 4.5% with upside. Borrow against plus death benefit. I have a 11 and 6 yr old and trying to get creative with college funding.
@@larryirwin4482 Silac is a very small company. They focus primarily on Annuities, which can be tricky and have surrender charges built in. I typically like Annuities for income distribution, but not for accumulation and liquidity (like what we do for banking policies). Annuities are great once you want to lock in and guarantee a portion of your income.
Well, whoever designed your whole life policy did a terrible job, lol. And, once again, you haven't had your IUL long...so just wait til it is out of the surrender period.
Haven't the dividend rates and dividend credit rates of WL been gradually going down over the last 20 years. Many were at 6-7% dividend rate 10 years ago but many now are barely at 5%. So wouldn't most of the WL policies not perform as well as the illustrations?
Sure. WL dividend rates have been going down for 40 years, really. They go down with interest rates. But whole life isn't considered an investment alternative (or shouldn't be, at least). Plus, now as rates increase, whole life will outperform illustrations as dividends increase. That's how they work. With IUL, they are sold on participation in the market providing upside. If IUL's didn't capture any upside in the greatest bull run in market history, don't you think that's kind of a MAJOR red flag? People need to stop comparing WL performance to IUL performance. Just because they are both cash value policies doesn't mean they are remotely alike. Whole life doesn't have the same risk profile as IUL. period...
@LIFE180 IUL not performing better during a bull run kinda like WL dividend rates going down in a bull run...you're entire chanel is about comparing WL to IUL but you're telling other to stop making that comparison? Both of these are considered SAVINGS alternatives, not investments. Returns in 401k and the average IRA wasn't exactly great over this last bull run either. Many averaged just 5-6% net of fees. An IUL with a fixed allocation strategy with guaranteed net zero cost loan can out perform the guaranteed values and most current values of many WL policies. That's not to say WL doesn't have its place and many IUL policies are not ideal but IUL can accomplish a lot while doing what it was intended to do by providing more upside potential. You can do mental gymnastics to try to say it doesn't provide downside protection but last year lots of market linked accounts lost 20% or more. That was not the case for IUL and in the fixed allocation you could have guaranteed growth in a down market. With the monthly point to point allocation you could have grown in 4 out of 12 months while getting a 0% credit in the 8 down months.
IUL's use Annual Renewable Term, yes. The amount of the term is based on the net amount at risk to the insurance company. With most agents using option B (increasing DB) that opens the door for a ton of insurance cost issues with ART as the policy holder ages. Does that make sense?
Amazing ! This seriously needs more views.. Almost as if there needs to more awareness. These advertised "safe upsides" are always questionable. After a quick google search, I'm here learning the difference between the two policies. I thank you sincerely!
Yeah, it's way more than just looking at illustrations. That is the greatest problem with IUL...the illustration always shows better than it actually performs. That's why I created the #IULchallenge to prove it. Check it out
Hey Erik, 9.8% is great for a single year. The problem is that you likely didn't buy it for a single year, you bought the policy thinking long term. And long term, the insurance company will not be able to keep that up. I have an entire playliat dedicated to educating agents and clients about this. Indexed Universal Life Training: th-cam.com/play/PLrRnvQl4pMjjMjEBtUVEJU_cwCZKtEvE1.html
@@LIFE180 IUL is a step below WL, you take on a bit more risk for chance at a larger return and its not quite a set and forget like a WL You can never guarentee what the WL dividend will be above the base guar rate which has recently gone down with the change in the insurance regulation. I wrote WL policies back in 2009 and dividends fell significantly since then so policy did not perform as illistrated so WL is not witiout its risks depending on how its presented. The biggest issue with IUL is how its sold and mostly how its structured. You cant control expenses in a WL but you have some control of expenses in an IUL, mabye thats why you dont have a expenses report in a WL policy but once again its how the policy is structured (right sized) for the client. You need to have and agent that has some clue of what they are doing and which type of policy would be better for your situation.
Great info. Would you say that based on a customers risk level, WL = Conservative... IUL=moderate and Variable products=Aggressive? I would love to see an illustration of the best IUL Designed policy (Low Early, Low Late) with a conservative rate of return (say 3-5%) that equals the average rate of return of the best WL policy? Then, compare the actual costs for the life of both policies (say 10-30 years) since WL cost is constant every year and IUL, depends on design, are high wither at start or end. Then show columns with most relevant information to your knowledge.
they both have to be properly structured tho! it's annoying to see channels only show the poorly structured ones, either whole life or an IUL. Both have great benefits with little downside if structured & funded properly
I would be more than happy to email you a correctly designed IUL free of charge just send me age, gender, and monthly premium of a random person and I’ll email you the illustration with all the fees, liquidity, etc. and you can request the best while using the same data from a pure whole life agent just for the sake of testing this theory
Hi! new to all this but learning so thank you for your videos! What do you mean the general account earns 4-4.5%? the insurance invests their general fund? Also, what do you mean by if I get 6% in policy after charges the insurance shouldn't have a problem with 7% without charges?
I will respond to this in my next live. Great questions. Happy to dive deeper, just very hard to write out here. Make sure to subscribe to see the live Friday when I answer!
Not at all. I love FIA's in the right situation. Ironically, they work completely differently. You are not dealing with the rising cost of insurance and loan rate risks as you are with IUL
@@LIFE180 I would love for you to do a video on exactly how they work differently. I thought it was a similar product by design. I am a little disappointed with IUL and life insurance as a whole after getting really into the weeds on the product.
Hi Chris, I love your video and how you actually bring historical facts into what you know, I just got recruited by PHP and I plan to use them as a springboard for better things; since as your videos point out they are not the best agency with these products they sell.
@@macz1proent.982 my agent suggested penn mutual for me. Its better for you tonspeak with a agent. I wanted mass mutual but i believe policies are tailored
Hi Chris, I'm considering getting licensed and now concerned after watching a few of your videos about IULs (and companies who hype them). I want to "educate and help families" but not hurt them/ not benefit them long-term or care more about high commissions. Is there a way for me to join this popular company (owned by Aegon) and sell IULs responsibly? Thanks for any wisdom you have time to share.
If you are selling IUL's as a tax free income alternative, I will tell you that there really isn't a way to do it without you dedicating HUNDREDS of hours to your personal education on how the products work before you will really understand. They are very complex products that should require additional education and certification to be able to sell. The problem isn't that they are bad, per se...it's that they are misrepresented....
Banks will NOT collateralized 100% of the CV of an IUL. There are a couple that now offer it. But it's only 50-70% of surrender value that they'll lend depending on the contract.
@@raycattaneo5722 share it with me. Would love to verify. I spoke to 3 banks at the national Naifa conference and the standard was 50% for 2 of them and the other didn't do it at all
What are your thoughts on TransAmerica? They're trying to sell me on a 13.75% annual cap rate for domestic fund, and 15% on the global fund. The illustrations they showed me show they've average 7% in the domestic fund. Also, what companies should I look at for iul companies?
RUN AWAY AS QUICKLY AS YOU CAN. Whoever is selling you on that should be thrown in jail. That's what I think. As far as what companies you want to look at, I would say you should not even start there. I can't answer without knowing WHY you want the policy in the first place. What do you need/want the policy to do for you and in what time frame? If you are really wanting IUL, as much. as I don't believe in it, there is 1 person I would suggest you call to help you if you need.
@@LIFE180 so if Transamerica backed by Aegon worth half a trillion writes this policy and is contractually obligated to .5% floor and 12-17% cap, you think they'll default on this and not be able to pay? This is a bad investment?
Hi Chris.. Hold On Chris..banks own IUL..cmon man Banks own IUL...are you serious...i can give you tons of examples offline if you would like..also Coastal States Bank..Bancorp will offer Cash Value Lines of Credit on IUL..now up to 95 percent loan to value...what a minute Penn Mutual, Pac Life.. Minnesota Life all mutual companies that offer IUL..huh? I will set up a call with you my friend..good debate..I like both...
Costal and Bancorp will offer CVLOC, but they don't give 95% value. Only in the 70% range. I just spoke with them... It's not much of a debate... look at my IUL Challenge. Show me an IUL that has out performed its original illustration after 10+ years. If you can do that, I'll be impressed. Everyone who likes IUL likes to lean on the good talking points. They don't like to acknowledge that during the greatest bull market ever, a product that is self-proclaimed tied to the index actually UNDER PERFORMED its original illustrated rates... if it doesn't perform during a bull market....it never will
I’d love to see you and the King of IULs Joe Ross do a debate! Purely for educational purpose of course. There can’t be 2 truths, he’s a dynamic and highly educated individual like yourself but he swears up and down on IULs.
Doesn’t seem objective. Explain without an opinion then offer yours. Even the history of both products leaned toward one product was explained with a glaring opinion and weighted wording. People don’t care which one is better they just want the facts. The history was selling Whole life vs IUL. STILL looking for an objective POV
Well, the facts are the facts. The history of IUL is atrocious. I've even created the #iulchallenge because I'm tired of IUL people saying how awesome it is when it never does what they say it will... IUL is supposed to give upside potential and downside protection. Why then, during the greatest bull run ever, did the IUL'S not outperform illustrated rates for a decade? 🤔🤔🤔 Do I push whole life ? Absolutely. I'm not ashamed about that. If you knew what I knew, you'd do the same thing.
@@LIFE180 you just in the video IULs aren’t bad and then go against that here. I’m all for reason and logic but your breakdown isn’t objective that’s my only challenge. You are doing good work I just believe it can’t be from your opinion if its gonna be factual stick to that… bring someone who has an opposing view point and let the people decide.. but one sided helps no one
@@thisisevolutiontv have you seen my interviews with Bobby Samuelson? Those are great. Also, I am happy to discuss / debate any IUL influencer anytime....but I insist that it be live recorded and no editing for full transparency. Once I do that, they ghost me....
Dude...you're off. That is not the case at all. Facts are facts, history is history. I bet you can't even explain to me how an IUL actually works if you are making that statement.
@@LIFE180 The fact that you see no difference in a max cash value IUL vs a max death benefit IUL literally tells me your full of shit. You probably think even using an IUL to eliminate RMD’s is wrong too.. every carrier is different, different policies, different structure…. The world is pretty big, go outside and step in it and actually learn before suggesting they are the worst thing since Hitler…
haha your common sense points seem more like a one sided naive statements with limited research. Really trying to beat down IULs there aren't ya?! Don't get me wrong i love certain whole life products but i also love certain IUL products. Not all of them are built the same way so to generalize IULs in this one big umbrella is so narrow minded. You're just saying statements but not providing any proof. Where is your actual research sources and what company's IUL have you dissected?
I feel the same way. Lob sided argument. I appreciate the educational and “common sense” approach, but I’ve seen in force illustrations of actual whole life and IUL policies, and IUL has been outperforming whole life for the last 15 years overall. The collateralize loans and alternative loans are a separator as well as the uncapped strategies. Yes, no guarantees but the index strategies themselves are outperforming the Internal ROR of whole life. BTW this is with Max Funded IUls. Overall they both work, but how about show in force policies and they’re actual returns? I have a few of them if you need proof.
What are some ways to create cash flow outside of wall street? Comment below! Learn How to use Whole Life Insurance As A Cash Flow Investment: th-cam.com/video/HDORbHQqOLA/w-d-xo.html Let's discuss your finances or life insurance business - click on the scheduling link in the description.
NEW IUL Updates Are Coming! Check out the updated video talking about it in my interview with Bobby Samuelson
th-cam.com/video/nbrWJS7rHEo/w-d-xo.html
or text IBC to 26786 to learn more
Me and my whole family (7 of us) have term insurance. Im educating myself and im thankful for your videos 😒😩
Reach out if you ever need anything or have specific questions. Chris@life180.com
Why would anyone need a line of credit from a bank collateralized by an IUL or Whole Life policy if they could borrow directly from the cash value in the insurance policy ?
Because there is always a cost to money. Insurance companies are going to charge you a higher rate, typically.
However, it only makes sense to do with Whole Life as banks won't give the same loan terms for IUL's. Because they know the risks are significantly higher. That's another reason I don't trust IUL's....because the banks don't trust them....
@@LIFE180 Of course...... But that is the point of infinite banking right regardless if its an IUL and Whole life??? Borrow against the cash value in the policy while the cash value still accumulates compounding interest?? Are you actually claiming it is better to take a line of credit from the bank vs a IUL policy loan because of the higher interest rates charged by the Insurance company ???
@@UnderTheRadarHighlightVideos yes I'm confused there too.
@@UnderTheRadarHighlightVideos ultimately it doesn’t really make sense to borrow at a higher rate when a bank could give you a lower rate. If your whole life policy charges you 5% but is only giving you 4% in guaranteed dividends then you lose 1%. Buffet’s rule is #1 don’t lose money :)
Wow! Interesting take. I have sold literly millions of dollars of IUL's and have drank the Kool Aid for many years. As I began to deal with more sufficated investors I began to see the benefits of whole life as a great place for "dry powder Money" and being able to be fully tranparent with clients rather than selling massive upside and avoiding the what ifs.. Appreciate the history lesson...
Sure thing. Believe me, I drank the Kool Aid originally, as well... It's a compelling sales pitch
Cash value life insurance is bullshit.
@@Sideler74 that's incorrect
12:14 Could you clarify why the insurance company wouldn't take the spread if the markets go up 20%? What happens to that spread if the insurance company isn't keeping that as additional profit?
Check out this video, it will explain:
th-cam.com/video/1hefL0i3d2k/w-d-xo.html
Another solid video here on the inner workings of IUL. I am glad I stuck with my simply guarantees from my Whole life insurance products.
Good comparisons & very in-depth with how the IULs work. I like both & have both 🤷♂️ Ultimately though, I do believe that people should understand there is so much more potential outside of these policies rather than the irr themselves. I believe you’ve mentioned before leveraging these accounts into other Businesses, Real Estate. I think this should be the focus, not whether or not which one performs better because they both are not great internal ror products. I think the ideal strategy would include investing into the stock market (equities & options), whole life & then physical real estate / businesses. Removing Bond allocation all together & repurposing that allocation to Whole Life instead. This way you’d be diversified across the Stock Market, Whole Life (Principal Protected) & the huge upside of Real Estate & Businesses. Just my thoughts.
Agreed. Neither should be viewed as an investment. My issue isn't with IUL being bad...it's simply that it is miss sold. And people's expectations are way out of alignment with reality.
My entire focus is using high CV policies to leverage for a guaranteed store of capital to use to make other investments better and to open up opportunity. More of an inflation hedged savings account.
From that angle, whole life wins every time.
But, I am passionate about helping people understand IUL for what it is. And I need to meet them where they are...which is either buying or selling IUL as an investment alternative- which in my opinion is dangerous.
And I agree with you...
Using whole life as your storage vehicle...investing in equities (actual companies / stocks, not mutual funds) and having physical real estate is the best combo. Throw in some Crypto for long term as well (at least for me)
@@LIFE180 💯💯💯💯
@@LIFE180 I'd like to learn more about IUL
@@QodeshiymYah I have an entire playlist dedicated to educating you on it:
th-cam.com/video/nbrWJS7rHEo/w-d-xo.html
I’ve been approached by companies focused on IULs particularly Premium Funded IUL as I’m working to get my insurance license, as a newbie changing careers in their mid 50’s trying to figure out what’s best in IMO’s, what would your recommendation be? Selling IUL, Premium Financed IUL, Whole Life, Final Expense…. Etc… Thank you if you have the time to reply!
I think it is important to be clear on who you are looking to serve as a client. Will you be creating your own leads, buying leads, or relying on another source of business? Premium finance is a tough nut to crack right out of the gate. It is a huge learning curve unless you are really sophisticated and have very high net worth centers of influence. Final expense is the most commoditized insurance. Not a ton of fun to sell, in my opinion, but there are companies that will just give you leads....nothing I would ever do though...
I would say whichever direction you choose, research and understand the products inside-out. Don't just follow the hype on either side. I love Whole Life personally because of the problems it solves for the people I am looking to serve - real estate investors and entrepreneurs. IUL is also not a great product for people in their 50's. It takes too long to mature, perform, and get through the surrender period.
Your comment regarding companies relying on IUL sales to fund whole life policies ultimately guarantees that they can't afford to adjust caps too low this would in turn affect the volume of IUL's sold which would negatively affect the whole life situation.
With interest rates being so low over the last couple years they seem to bottom out cap rates in the 8% range. The cap should increase when the interest rates increase. If not then companies will most likely have some explaining to do. In my opinion IUL's do work given a long time to max fund them (young person whose ART is super cheap) even if illustrated lower than what they are allowed to do and then when it's time to start loaning out the money you change the plan to Option A to lower the COI. There is risk but much much lower than putting money in a vehicle (401k, 403b, roth) that is exposed to so much volatility not to mention the tax rates will be higher later down the road. I believe whole life has it's place but to me it's more of a supercharged savings account with death benefit attached.
You miss the point...they can reduce the cap rates of older inforce policies while having a higher cap for newer marketed products. It happens all the time. The higher early caps are essentially used and written off as a marketing expense.
At the end of the day, the biggest factor to cap rates is the options market and the cost of options. That's why they are reducing caps. The bigger the IUL market gets, the more they create their own problem with option market competition.
If interest rates go up, the index performance will suffer, which will also mean low performance.
They have done well for a decade because it was the greatest bull run ever in markets. Traditional UL had same experience from 1981 - 1994. Ironically a very similar time frame. Wait and see....
@@LIFE180 Even in low decades like 2001-2011 wish show 2 crashes (2001 and 2008) IUL performed over 5% total in that decade. If you go to a Mutual participating WL policy and you are lucky to get dividends you MIGHT get 5% to 5.5% even in Best market performances decades. I personally sell both. The better product do's not depend on your analysis. It ONLY DEPENDS in the Clients goal. Trying to shove a WL to someones throat because is your preference is irresponsible. If you are not a business owner using WL to back up a loan a WL is NOT the best option for retirement and accumulation.
@@discipulo4ever did you ever hear from Chris regards to this?
10/10 for value added to my life. Thank you sir!
You got it! Thx for the feedback 🙏🏻
Amazing info Thank you. Just recently got my Insurance license. Your videos are great. Lots of info books don’t teach ya.
Thanks! Lmk if you have any specific questions you need clarity on.
I'm a new agent and I am very grateful for these videos. I want to know the truth so I can best serve my people. I have a serious question here. So with MOO, the only way I can get my 49 year old client 200k in permanent coverage is through their IUL. All investments and indexing aside, isn't the permanent coverage alone worth it to get her this policy?? Their whole life maxes out at 40k and term is not permanent....
I'm not sure I am understanding your angle on this? Are you saying the max you can get with their budget of $XXX per month or year only gets you $40k of DB with whole life and $200k with MOO IUL? If that's the case, that could be a dangerous design that will lead to increased premium requirements in an IUL. It's hard saying without seeing it....
@@LIFE180 yes. I dont know if you have access to MOO's quote tool but she's 49 non smoker and it seems like the only permanent options are IUL and whole life. Whole life tops at 40k. I'm not sure if her premium payments will increase over time, I would like to know if they will before I recommend an IUL. I guess I can call MOO and ask? Where can I find the fine details about the policy? I've only been an agent for about 5 months and I've been wondering why no one knows or wants to talk about product knowledge. I really want to help people and I want to know everything before I recommend it. Again that's why I love your channel man, thanks for talking with me seriously.
@@vernedudeman email Chris@life180.com and I'll help you out
@@LIFE180 thank you
Amazing video! Thanks for sharing your knowledge and experience Chris. A lot of friends we know bought IULs without knowing how it works and all the risks involved... I like your 2nd common sense: let’s bring an IUL policy and a whole life policy with a similar cash value to the bank, to get a cash value line of credit. We’ll know the difference right away. 😊
Thanks, Theresa!
I never comment on a video but this absolutely drilled down on exactly what I have been looking for regarding IULs.
Glad it helped!
@@LIFE180 What's your take on the difference between whole life and annuities? I'm looking at a Silac product and it seems it has the same guarantees of 4.5% with upside. Borrow against plus death benefit. I have a 11 and 6 yr old and trying to get creative with college funding.
@@larryirwin4482 Silac is a very small company. They focus primarily on Annuities, which can be tricky and have surrender charges built in. I typically like Annuities for income distribution, but not for accumulation and liquidity (like what we do for banking policies). Annuities are great once you want to lock in and guarantee a portion of your income.
@@larryirwin4482 wouldn't use them for college funding tho, personally
@@larryirwin4482 th-cam.com/video/4chBFMZqJrc/w-d-xo.html is a great video to talk about college planning. Hope it helps
I love my iul...I have both and my iul outperforms my wli by 2.5x
Well, whoever designed your whole life policy did a terrible job, lol. And, once again, you haven't had your IUL long...so just wait til it is out of the surrender period.
@@LIFE180 are you a licensed agent? which state so I would know
So I am being told IUL's fees are front loaded and doesn't not get more expensive with time. True or false?
False.. make sure you subscribe. I have 2 videos coming out showing exactly that topic early next week
Haven't the dividend rates and dividend credit rates of WL been gradually going down over the last 20 years. Many were at 6-7% dividend rate 10 years ago but many now are barely at 5%. So wouldn't most of the WL policies not perform as well as the illustrations?
Sure. WL dividend rates have been going down for 40 years, really. They go down with interest rates. But whole life isn't considered an investment alternative (or shouldn't be, at least). Plus, now as rates increase, whole life will outperform illustrations as dividends increase. That's how they work.
With IUL, they are sold on participation in the market providing upside. If IUL's didn't capture any upside in the greatest bull run in market history, don't you think that's kind of a MAJOR red flag?
People need to stop comparing WL performance to IUL performance. Just because they are both cash value policies doesn't mean they are remotely alike. Whole life doesn't have the same risk profile as IUL. period...
@LIFE180 IUL not performing better during a bull run kinda like WL dividend rates going down in a bull run...you're entire chanel is about comparing WL to IUL but you're telling other to stop making that comparison? Both of these are considered SAVINGS alternatives, not investments.
Returns in 401k and the average IRA wasn't exactly great over this last bull run either. Many averaged just 5-6% net of fees.
An IUL with a fixed allocation strategy with guaranteed net zero cost loan can out perform the guaranteed values and most current values of many WL policies.
That's not to say WL doesn't have its place and many IUL policies are not ideal but IUL can accomplish a lot while doing what it was intended to do by providing more upside potential. You can do mental gymnastics to try to say it doesn't provide downside protection but last year lots of market linked accounts lost 20% or more. That was not the case for IUL and in the fixed allocation you could have guaranteed growth in a down market. With the monthly point to point allocation you could have grown in 4 out of 12 months while getting a 0% credit in the 8 down months.
That was very informative. Thank you
Glad it was helpful!
I grow tired 😩 of what insurance is best
It's a big decision and one everyone should understand....
In an earlier video, you mentioned that an IUL is built on yearly renewal term life, which increases every year. True??
IUL's use Annual Renewable Term, yes. The amount of the term is based on the net amount at risk to the insurance company. With most agents using option B (increasing DB) that opens the door for a ton of insurance cost issues with ART as the policy holder ages.
Does that make sense?
Amazing ! This seriously needs more views.. Almost as if there needs to more awareness. These advertised "safe upsides" are always questionable. After a quick google search, I'm here learning the difference between the two policies. I thank you sincerely!
That reaction is why i do what I do. You're welcome. Glad it helped. Please share with people 🙏🏻
I wanted to see a comparison by numbers
Yeah, it's way more than just looking at illustrations. That is the greatest problem with IUL...the illustration always shows better than it actually performs. That's why I created the #IULchallenge to prove it. Check it out
I was credited 9.8% on my IUL last year. I want more information on how this is bad please. Any other videos?
Hey Erik,
9.8% is great for a single year. The problem is that you likely didn't buy it for a single year, you bought the policy thinking long term. And long term, the insurance company will not be able to keep that up. I have an entire playliat dedicated to educating agents and clients about this.
Indexed Universal Life Training: th-cam.com/play/PLrRnvQl4pMjjMjEBtUVEJU_cwCZKtEvE1.html
@@LIFE180 IUL is a step below WL, you take on a bit more risk for chance at a larger return and its not quite a set and forget like a WL You can never guarentee what the WL dividend will be above the base guar rate which has recently gone down with the change in the insurance regulation. I wrote WL policies back in 2009 and dividends fell significantly since then so policy did not perform as illistrated so WL is not witiout its risks depending on how its presented. The biggest issue with IUL is how its sold and mostly how its structured. You cant control expenses in a WL but you have some control of expenses in an IUL, mabye thats why you dont have a expenses report in a WL policy but once again its how the policy is structured (right sized) for the client. You need to have and agent that has some clue of what they are doing and which type of policy would be better for your situation.
Great info. Would you say that based on a customers risk level, WL = Conservative... IUL=moderate and Variable products=Aggressive? I would love to see an illustration of the best IUL Designed policy (Low Early, Low Late) with a conservative rate of return (say 3-5%) that equals the average rate of return of the best WL policy? Then, compare the actual costs for the life of both policies (say 10-30 years) since WL cost is constant every year and IUL, depends on design, are high wither at start or end. Then show columns with most relevant information to your knowledge.
they both have to be properly structured tho! it's annoying to see channels only show the poorly structured ones, either whole life or an IUL. Both have great benefits with little downside if structured & funded properly
I would be more than happy to email you a correctly designed IUL free of charge just send me age, gender, and monthly premium of a random person and I’ll email you the illustration with all the fees, liquidity, etc. and you can request the best while using the same data from a pure whole life agent just for the sake of testing this theory
Hi! new to all this but learning so thank you for your videos! What do you mean the general account earns 4-4.5%? the insurance invests their general fund? Also, what do you mean by if I get 6% in policy after charges the insurance shouldn't have a problem with 7% without charges?
I will respond to this in my next live. Great questions. Happy to dive deeper, just very hard to write out here. Make sure to subscribe to see the live Friday when I answer!
Thank you for this.
My pleasure!
What do you think about the FIA for income in retirement? Does this funny business go on in annuity world too?
Not at all. I love FIA's in the right situation. Ironically, they work completely differently. You are not dealing with the rising cost of insurance and loan rate risks as you are with IUL
@@LIFE180 I would love for you to do a video on exactly how they work differently. I thought it was a similar product by design. I am a little disappointed with IUL and life insurance as a whole after getting really into the weeds on the product.
Also out of curiosity what is "the right situation" in your option to use an annuity?
Here we go! 🤙🏼😁 🍿 thanks for the videos as always!
You are welcome! Hope this helps in the battle :-)
love you dude
Hi Chris, I love your video and how you actually bring historical facts into what you know, I just got recruited by PHP and I plan to use them as a springboard for better things; since as your videos point out they are not the best agency with these products they sell.
Lmk how we can help in any way
I'm working on my 2nd bank branch with whole life through penn mutual
Congrats!
@LIFE180 thank you
Is penn better then ny life ?
Where can I get the best rates and policies? Thankd
@@macz1proent.982 my agent suggested penn mutual for me. Its better for you tonspeak with a agent. I wanted mass mutual but i believe policies are tailored
That’s why IULs work!
wow, really? I can totally see that. hmmm. thanks!
you got it!
Hi Chris, I'm considering getting licensed and now concerned after watching a few of your videos about IULs (and companies who hype them). I want to "educate and help families" but not hurt them/ not benefit them long-term or care more about high commissions. Is there a way for me to join this popular company (owned by Aegon) and sell IULs responsibly? Thanks for any wisdom you have time to share.
If you are selling IUL's as a tax free income alternative, I will tell you that there really isn't a way to do it without you dedicating HUNDREDS of hours to your personal education on how the products work before you will really understand.
They are very complex products that should require additional education and certification to be able to sell. The problem isn't that they are bad, per se...it's that they are misrepresented....
Wow. Thank you
You're welcome
Thank You
You're welcome!
Great video. Main point...stay away from IUL!!!
haha, yep. But my main point is educating people why and understanding what you are doing with your money :-)
Term insurance is the most profitable for the insurance company
Not for the companies that focus on IUL sales
Your wrong.
Insurance companies are the only company that is solvent.
WL has failed many people as well.
Has WL really failed people? I want to hear your explanation of how it has....
What happens when you miss monthly payments in a WL policy’s?
You can find iuls w 90%+ cash value and banks will collateralize the cash value
Banks will NOT collateralized 100% of the CV of an IUL. There are a couple that now offer it. But it's only 50-70% of surrender value that they'll lend depending on the contract.
@@LIFE180 I've got a bank that will do 90%
@@raycattaneo5722 share it with me. Would love to verify. I spoke to 3 banks at the national Naifa conference and the standard was 50% for 2 of them and the other didn't do it at all
Integrity bank and trust Colorado springs
@@raycattaneo5722 nice!
What are your thoughts on TransAmerica? They're trying to sell me on a 13.75% annual cap rate for domestic fund, and 15% on the global fund. The illustrations they showed me show they've average 7% in the domestic fund. Also, what companies should I look at for iul companies?
RUN AWAY AS QUICKLY AS YOU CAN. Whoever is selling you on that should be thrown in jail. That's what I think. As far as what companies you want to look at, I would say you should not even start there. I can't answer without knowing WHY you want the policy in the first place. What do you need/want the policy to do for you and in what time frame?
If you are really wanting IUL, as much. as I don't believe in it, there is 1 person I would suggest you call to help you if you need.
@@LIFE180 so if Transamerica backed by Aegon worth half a trillion writes this policy and is contractually obligated to .5% floor and 12-17% cap, you think they'll default on this and not be able to pay? This is a bad investment?
Hi Chris.. Hold On Chris..banks own IUL..cmon man Banks own IUL...are you serious...i can give you tons of examples offline if you would like..also Coastal States Bank..Bancorp will offer Cash Value Lines of Credit on IUL..now up to 95 percent loan to value...what a minute Penn Mutual, Pac Life.. Minnesota Life all mutual companies that offer IUL..huh? I will set up a call with you my friend..good debate..I like both...
Costal and Bancorp will offer CVLOC, but they don't give 95% value. Only in the 70% range. I just spoke with them...
It's not much of a debate... look at my IUL Challenge. Show me an IUL that has out performed its original illustration after 10+ years. If you can do that, I'll be impressed. Everyone who likes IUL likes to lean on the good talking points. They don't like to acknowledge that during the greatest bull market ever, a product that is self-proclaimed tied to the index actually UNDER PERFORMED its original illustrated rates... if it doesn't perform during a bull market....it never will
I’d love to see you and the King of IULs Joe Ross do a debate! Purely for educational purpose of course. There can’t be 2 truths, he’s a dynamic and highly educated individual like yourself but he swears up and down on IULs.
Anytime he wants, I’m in. I don’t know who he is…? 🤔
Think about that think about that think about that think about that
Gee wiz man
What is your point? 🤔 I don't get the comment
Doesn’t seem objective. Explain without an opinion then offer yours. Even the history of both products leaned toward one product was explained with a glaring opinion and weighted wording. People don’t care which one is better they just want the facts. The history was selling Whole life vs IUL. STILL looking for an objective POV
This was not a list of pros and cons of each this was strictly why whole life is better. Unfortunate
Well, the facts are the facts. The history of IUL is atrocious. I've even created the #iulchallenge because I'm tired of IUL people saying how awesome it is when it never does what they say it will...
IUL is supposed to give upside potential and downside protection. Why then, during the greatest bull run ever, did the IUL'S not outperform illustrated rates for a decade? 🤔🤔🤔
Do I push whole life ? Absolutely. I'm not ashamed about that. If you knew what I knew, you'd do the same thing.
@@LIFE180 you just in the video IULs aren’t bad and then go against that here. I’m all for reason and logic but your breakdown isn’t objective that’s my only challenge. You are doing good work I just believe it can’t be from your opinion if its gonna be factual stick to that… bring someone who has an opposing view point and let the people decide.. but one sided helps no one
@@thisisevolutiontv have you seen my interviews with Bobby Samuelson? Those are great.
Also, I am happy to discuss / debate any IUL influencer anytime....but I insist that it be live recorded and no editing for full transparency. Once I do that, they ghost me....
@@LIFE180 hey I will check those interviews thank you!
Dude your off it’s all about how it’s structured.. and you know this..
Dude...you're off. That is not the case at all. Facts are facts, history is history. I bet you can't even explain to me how an IUL actually works if you are making that statement.
@@LIFE180 The fact that you see no difference in a max cash value IUL vs a max death benefit IUL literally tells me your full of shit. You probably think even using an IUL to eliminate RMD’s is wrong too.. every carrier is different, different policies, different structure…. The world is pretty big, go outside and step in it and actually learn before suggesting they are the worst thing since Hitler…
haha your common sense points seem more like a one sided naive statements with limited research. Really trying to beat down IULs there aren't ya?! Don't get me wrong i love certain whole life products but i also love certain IUL products. Not all of them are built the same way so to generalize IULs in this one big umbrella is so narrow minded. You're just saying statements but not providing any proof. Where is your actual research sources and what company's IUL have you dissected?
I feel the same way. Lob sided argument. I appreciate the educational and “common sense” approach, but I’ve seen in force illustrations of actual whole life and IUL policies, and IUL has been outperforming whole life for the last 15 years overall.
The collateralize loans and alternative loans are a separator as well as the uncapped strategies. Yes, no guarantees but the index strategies themselves are outperforming the Internal ROR of whole life.
BTW this is with Max Funded IUls.
Overall they both work, but how about show in force policies and they’re actual returns? I have a few of them if you need proof.
@@dc5540 email then to him & you'll win $1000!
@@dc5540 yes did you email and win $1000 !?
👊🏆🏆🏆
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