IUL has evolved since filming this video...so have the lies used to sell it. Check out the newer, updated version: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-e_wWDMTDD4I.html 6 Lies Used To Sell IUL In 2024
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 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.
Loved your information on this video! I have a friend who has earned about $750,000 over the last 6 years as a financial advisor, selling these things...... She currently has 13 IUL's herself (8.5 mil in insurance now). Anyhow, she almost talked my husband and I into it. I had trusted her and seen her success. However, she left the CONS about the IUL out of her presentation. When I looked into it myself, I had a very bad feeling about it ( and finding out if you need that money back after 2 -3 years into it - good luck). We opted out in the pre-qualifying process, thank the Lord. She really thinks they are the best thing ever. I believe she has been brainwashed by the people who educated her and as you said, those charts. And of course her accounts have made 12% interest in the last 6 years so far, so she is not seeing any problems yet.
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.
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
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.
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
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
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.
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
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
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?
Whole life is too expensive and fixed not as flexible as IUL. National life's insurance policy has free full living benefits but none others. Stop bashing other competitors as it doesn't look good on you but start disliking you. You are showing jealousy as you do not have as good as Doug's experience and knowledge. Everyone is entitled to sue any one civilly. Not all cases are valid until there is a judgment given. How would you feel if you were in the shoes of Doug Andrew? I read all his books and they are all based on proven experience and knowledge.
You are hilarious 🤣 this is making me look bad helping the world realize that Doug Andrew is a fraud? One suit can happen.... a 66,000 person class action suit and selling a possible scheme and losing your license over it? That's not a coincidence. I'm doing the industry a service. If you are on his side, I hope anyone who is contemplating working with you reads this.
You are wrong on so many levels! You clearly don’t understand an IUL and how it works and you’re misinforming the general public. Everything from the guaranteed column, to the cost of insurance over time is partial truth at best. It’s all in the structuring. I’ve written hundreds of IULs over the last 10 years and they all are vastly outperforming the illustrations. One of the main reasons is you have to pick the right company, 99% of the companies that offer IUL I would never write business for. Helping people is one thing but you’re as bad a Dave Ramsey so stop confusing people
You're funny. I was the head of Biz Development for National Life Group - the top iul company in the country.... the facts are the facts. Watch my interview with Bobby Samuelson. Maybe you'll learn something instead of just selling what the wholesaler educates you about.
@@LIFE180 I’m funny?! I don’t care who “says” they’re the number one company, if what you’re saying is true about their IUL products then no shit IULs suck! Facts are facts… the few companies I write IUL policies for have averaged 8-11% returns for the last decade! Speak for yourself and National Life, but quit misinforming folks! Get the facts about the true beat companies and they’re properly structured policies are way different! Hint: It has to do with the cost of insurance!
@@aaronvaughn1320 you're right. Facts are facts. So tell me, what companies do you represent? The facts are, the foundation of IUL are the same for every company. The fact that maybe your company did 12% for a decade tells me that you are dealing with a no cap product, which means you couldn't have done that for a decade because they didn't exist until after regulation AG49a came out. And that wasn't a decade ago. Any other company has cap rates too low to give that return, so your obviously full of garbage. If you're so confident, tell me what companies you sell and I will do a deep dive on them. You probably don't have the guts to do it. As a side note, professionally, I would suggest you check out LIFEPRODUCTREVIEW.COM to really educate yourself about this stuff before you keep selling it.
@@aaronvaughn1320 also, if you're really leaning on the cost of insurance, that tells me you are selling mutual of Omaha. As they have the best COI in the biz. That is true. But to say they are averaging that in a bull market means nothing. You have to think long term. After all, you sell it as a long term solution. So how it performs over 30 years after fees, cap reductions, and market performance is what matters. Doing well during the best market run in 100 years does nothing to impress me and if it impresses you....well, I feel sorry for you.
I think that is the real concern-that the market will not perform in the near future and maybe not for a while so fees and low returns could not yield good results. I like the living benefit piece. What's the best return with that product?
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!
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
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.
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.
In a nutshell. Take whatever the projected illustration showed with a grain of salt. When viewing the illustration, make sure to reduce the percentage by 1 or 2% and compare it with the insurance projected illustration. By doing the comparison, your mind will be at peace knowing that you are smarter than the selling person who tries to make 60-80% commission in the first year premium you pay out. Also, you should ask up to $500 in Visa or Master gift cards to earn your business. If the agent going to make 60%+ of the premium in the first year and 10% yearly after. A gift card is an incentive to earn your long-term premiums.
It is very simple, use the midline assumption on the IUL and ALWAYS illustrate for income. Then look how it performs. Then, make sure you look at the accumulated value and surrender value and evaluate what happens to the surrender value on a 0% index return when you are taking income in retirement. What you will find is that the policy is always at WAY MORE RISK than you are lead on to believe.....
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.
I think everything you said has certain level or truth , different companies different problems , don't you think it will be worth mentioning that unlike whole life insurance you have living benefit with the IUL or at least with the policy i own , I'm protected for a million dollars and if something was to happen to me a terminal, chronical or terminal illness even Alzheimer i can access up to 90% of the total value of my policy tax free depending on the severity of the case, and don't say they are not accessible my father passed from cancer at age 73 and i don't know what we would have done if not for his IUL and those benefits.
I don't think it would be worth mentioning whole life not having living benefits...because whole life DOES have living benefits. Who told you it doesn't? It's actually concerning to me that you make this comment. Living benefits are extremely important, I agree. They have helped my father in law pay for alternative treatments for 4 years with his Pancreatic cancer. But the fact you think ABR's are exclusive to IUL is concerning to me on your level of training. I hope you're not telling clients that.....
Probably way too many people relying on life insurance as a way to leave an inheritance By the time you are in your 50s or so your kids should be gone and you should have enough money to self insure. You’re adult kids don’t need your income Start investing more in low cost funds
That is the way broke people think.... Wealthy families are always trying to protect what they build and help the next generation build even more. Everything you just said is scarcity driven.
Are you saying that the guaranteed zero floor isn’t true? My IUL last year didn’t lose but my IRA & 401k went down 18% & 19%.. You talk ID a “company that shifted from whole to index” what company was that & isn’t that a good move since cost of insurance for whole is expensive .. what your describing where a policy eats away at itself is what happened to my whole life 15-20 years ago that’s why I “shifted”to IUL & that hasn’t happened to my IUL MR Life 180
If that is what happened to your whole life, you had a really horrible policy design. This isn't simple stuff to understand, I get it. Check out this video if you want to truly learn deeper. ru-vid.com4Dx4wWkl6cY?feature=share
You are full of negative energy which is so draining. You are not helping the people who needs IUL as a solution for their 3 major life risks which are dying too soon, getting sick along the way and living a long time. Does your whole life policy pays when the client gets sick and cannot go to work? IUL with living benefits does and it is tax free, a lot of people I know already received huge amount of checks because they got sick and it helped them a great deal. Max funded, properly structured IUL will provide tax free income and illustrations are hypothetical because it is based on the historical performance of the linked indices which is used in projecting the future cash value accumulation in the policy in case history repeats itself because there is no way that we can predict the future performance of the market so of course the numbers will not exactly match. And if IUL is evil, what better product are you suggesting that out performs IULs benefits?
You call it negative, I call it educating and saving people. I was the dir of biz dev at NLG when they created the puzzle pieces you are referring to. You don't need IUL for living benefits, whole life has them too. In addition, the living benefits are only as good as the policy being in force. Don't get me wrong, if someone gets sick really soon, then having an IUL with living benefits is better than having nothing. But from that perspective, you can get term with living benefits for a fraction of the cost. I promise you, IUL has hurt far more people then it has helped. If you are open to a real education, I can guide you to how whole life is far better than IUL. Don't get me wrong, IUL will "illustrate" better, but ACTUAL REAL LIFE PERFORMANCE is what I care about. What is important is understanding the fundamentals of how the products ACTUALLY work...not just how they illustrate...because all illustrations are trash
Why is it that all you insurance sales people are always bashing IULs just to sell your crap products. If your product is so good why don't you focus on educating people on it and showing all the great benefits of your products. The give you all does good options because your money is traded on options instead of common stocks. Talking crap with confidence dude.
Why is it that uneducated people like you watch one video and make a comment about me making videos like this. You might want to do some homework on me, my background and my content. I would love you to get rid of the emotion and tell me exactly what you disagree with that I said... Also, I have hundreds of videos on the products and strategies I believe in, use and coach people to. But when a product like IUL is so misrepresented, truth needs to be shared.
Whole life sucks. If someone passes the investment part goes to the company. Thats BS And IUL is way better. And insutance rates are the same forever with our company. This is all BS. Nothing else is like it. Everything else in the market is taxable . IUL is all tax free.
This is a very emotional and uneducated statement. Your statement on whole life would be the same for IUL if you compare apples go apples. Insurance rates are NEVER the same forever with IUL. If you are teaching that, you will lose your license eventually. Sounds like you drank the IUL Kool-Aid. I get it. But stop with the confirmation bias and try to learn something. What company do you sell that matches these claims? I bet I have a video teaching about it.
OmG .. sorry… I don’t think you have a clue about IUL and how it works, and specially about how the insurance companies pays the commissions and how the cost works… are you even licensed???
You might want to check out my channel and credentials before making stupid comments like this. The fact you say I don't know what I am talking about tells me that you, in fact, have no clue what you're talking about and are actually likely part of the greater problem of uneducated IUL agents.
The admin fees and insurance costs are not significant enough during a zero year as opposed to losing 20% of your accumulated value due to a down market so of course there's going to be more added risk wherever there's more growth potential it's nothing new by looking at all your videos you're just generalizing all the policies based on what has happened in the past with poorly structured UL policies that were illustrated back in the 1980s and 90s at a 10 or 15% rate of return
Once again, as far as illustrating the future, I agree....it looks great on the surface. Until 8 years from now when the insurance company has reduced your cap rate and increased all your charges. Don't you see that compounds the problem...because when there isn't as much CV in the policy by year 7 as illustrated, the return in the policy doesn't cover the internal fees. Put on top of it the lower future cap rates and it's gross how poorly they perform compared to illustration. I'm pretty much only comfortable with IUL when illustrated at around 5%
@@LIFE180 once again you're speaking in theory because as we seen the last 15 years all the good iul companies have not raised their admin cost but they have lowered their caps recompensate for the low interest rate environment we're currently in
@@429mas Ok...let’s just say all they do is lower cap rates due to the low interest rate environment... thank you for acknowledging that...you just proved my point. Ever since the inception of IUL’s, cap rates have been getting reduced. Yet there is no way to illustrate reduction in cap rates and the insurance companies (most at least) have the contractual ability to reduce it all the way to 3%. IDK about you, but I would love to see how an IUL performs with an 8% cap (it’s coming). The fact you are sitting here telling me that you will run an IUL at an assumed rate of 6.5% when a whole life dividend is just over 6% for more carriers as if the 6.5% is a good assumption to bank on....yet then acknowledged that in a low interest rate environment whole life dividends will drop, and somehow think insurance companies won’t lower cap rates which will crush the returns in the IUL... AND with an IUL, there can be years with ZERO minus expenses and fees. You will never have a zero year in a whole life policy. Plus, when the insurance companies need to come up with money to fund their guaranteed contracts in this low rate environment, who do you think they are going to go to first for their money? YEP, IUL policies. It’s the easiest and most logical place... Tell me that doesn’t make sense. Thank you for another video topic idea.
@@LIFE180 not necessarily because mutual companies actually make profits when you start taking loans on those policies so whenever you use a participating whole life for infinite banking purposes the insurance companies are surely making profits from those 6 to 8% policy loans and only crediting 4% on those contracts not to mention all the actual internal cost of a whole life policy that's not illustrated on paper to the policyholders plus you keep forgetting that some iul policies will actually carry uncapped index options that only charge between a 2-4% spread only when the market performs over 20%
Cool story. You forgot the part of, "all from a guy who sold millions of $$$ of IUL premium and was the Dir of Biz Dev for one of the top IUL companies in the country". Love that you are trying to hold on to your confirmation bias. But for your clients sake, maybe let that go for a bit?
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.
IUL and term insurance are the largest profit centers for life insurance companies industry wide. If you think I speak as if all are the same, you haven't watched many of my videos
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 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
So the moral is, put your money in the stock market and risk losing 30% of your “Roth” at the age of 67? And Doug Andrew is one a-hole. But I can point to hundreds of “advisors” who are even WORSE!
No disputing that traditional advice is horrible. I agree with Doug Andrew on the problem most of the time....it's his solutions that are the problem. People are trusting him and will end up worse off for following the strategies....
What advisor would suggest a 67 year old have 100% of a Roth IRA in stocks? That is a figment of some insurance agents' imagination. Here's a better idea...how about a 67 year old have 2 years of desired income in cash, and rest in a balanced mix of bonds and dividend paying stocks within their Roth? They can maintain liquidity and save the commission of whatever you're schleping
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?
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.
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..
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.
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.
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.
Really? Is that what I am doing? Do you have any idea about my background? Or did you just happen to stumble on this 1 video, watch only this and come to that uneducated conclusion? 🤔🤔🤔🤔
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?
I own an IUL< my issue with you is you seem to use your "experience with and IUL insurance company that is nameless and your background does not have a specific authenticity to your claims, and your narrative is like anyone who is trying to sell a program. so it is like a switch and bait. bash Doug Andrew with your non based expertise to sell your own program. to me your authenticity has no ground.
haha, ok. You obviously haven't watched many of my videos. I am 100% up front with who I worked for. It was NLG. I had a 2 year gag order basically after leaving them. I am not bashing anyone to sell them into anything of mine. I am simply trying to help educate people to make a better decision. Just for the record, from 2016 til 2021, I literally had ZERO way to monetize my content on Life Insurance. Just recently (the very end of 2021) I started an IMO. That was founded because it filled a major need in the market. And we are doing amazing things. You are, of course, entitled to your opinion of me...that's cool. But if you ignore what I have to say about IUL, it'll be to your own detriment long term. It's your life.
I have IUL for over ten years and I happy . I managed to get 12% out of it. What so nice about it, I be able to get the cash out and invest in the stock market when the stocks are down. So, I don’t know what is this guy talking about. Is he trying to sell his product? 😂
That's perfect. Submit the original illustration and the current in force illustration showing proof of what you are saying and I will give you $2,500 according to the #IULchallenge If you think I am doing this to sell my product, you obviously haven't followed me long....and know nothing about me. Nice try though.
I wouldn't get an IUL. For whole life insurance, the insurance company would pivot the general fund account and pick up other assets that actually have value. I've done a video on this
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.
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
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...
Yeah. That is the case sometimes. But honestly, I think most IUL agents simply don't know what they don't know. The companies push training that is full of half truths. The only reason I learned what I learned is because I worked on the inside. In fact, I went through a law suit on my way out as they tried to keep me quiet... This is why I am so passionate now about educating people and agents....
You clearly have a motive because this video is full of untruths and generalizations. Your tying to scare people with no facts. You lost all credibility with you 1st point: Agents make 150% on commissions so the insurance company makes no money. You know the agent is only paid year 1 and this is a long term product. Even if agents made that money the company has 25 years to recoup that. You lack credibility.
I always laugh at comments like this.... First, agents can actually earn up to 165% first year commission with IUL...not 150%. 2nd...there are also renewals and trails that agents make to service the business long term. If you're an agent and not making those, someone is ripping you off. So, you say I lost credibility with something you don't even understand... Please, tell me, where is the next point I lost you? Go ahead, bring it. I guarantee you I will prove you wrong.
@@LIFE180 yes absolutely, because they are not paying agents those commission annually on IUL’s or ANY life insurance business. To imply that agents are consistently getting 150-165% commissions annually on an IUL is a flat out lie or a complete misrepresentation at best.
@@LIFE180 furthermore I’m not continuing to watch the video of someone who clearly has a motive. For you to get on here and mislead people your trying to sell something. The first 3 minutes of this video tells me your either ignorant or disingenuous and I’m not wasting any more of my time watching the whole video or any more of your content. There are many people on here sharing content that is honest and helpful. I know enough about all insurance products, IUL and the industry to spot a fraud. It’s giving Priamerica over here
@@daniellesarie7708 nobody ever said 150% annually 🤣. Are you kidding me? But to say they don't earn anything after year 1 (as you implied) is the REAL LIE
@@daniellesarie7708 tell you what, I'll give you a chance to prove your intellect on the matter....I'll invite you on for an interview. Give me your best sales pitch with an illustration and tell me why it's so good. I will counter with the problems and see what your responses are. Then we will see who the fraud is.
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.
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
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.
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.
@@bretbarker3006 Tony Robbins does not say "indexing" is the way to go....he says buying indexed funds and ETFs are the way to go. There is a big difference. And the answer to your question on the 6% figure is a much more complicated answer because the product is much more complicated than you realize.
