I kid you not, George, the moment I got my 214 license to sell life insurance and annuities was the moment I knew I’ll probably never sell one. Actually studying the ins and outs made me realize what the business was really about. It’s sad. And today, I was tricked into a call to sell me a UIL (I listened while checking my email) - not even kidding, I have proof. Oh and then they told me I could get $1800 worth of a 50% commission split by referring them clients… Thanks for making the video I was looking to make myself.
Almost got into IUL; thank goodness the FIRE community had several breakdowns of it like this one that warned me away Thanks for making this so easy to understand!!!
Another thing people might ask is, "what happens if I'm still alive at the end of the term?" By the end of the term, if you avoid debt, and have invested the difference, like George suggested, (plus the rest of George's advice on investing) your financial responsibility should be minimal. House paid off, no debt, large savings. And the money you've saved yourself by not going with a whole life policy will pay for any after death expenses.
The insurance sales people are often ignorant and indoctrinated by their sales leaders, unfortunately. They try to hire simple, trustworthy type people and send them out selling without fully understanding what they're doing.
Literally, maybe a week or two ago a friend of mine who sells this crap to people and I had a disagreement about this in a comment thread. Boy did he confuse the crap out of me. Said that their IUL has a floor of 0% and a cap of 6%. 😳 Absolute highway robbery!
Thank you, George. I have seen this a lot and was thinking there was some secret code I didn’t know by being raised poor. I love your channel. Keep up the good work.
George and the team nailed it. One BONUS** fact is ; even with all the things George nailed, there's one more tool that insurance companies use and that is "Participation rate" which means after the cost of insurance, after the fees, and that little bit left, they still can say that only 80% of that money "participates" in the gains. Some policies will start at 100% participation BUT they have the ability and right to lower it which is one more lever and one more thing that makes the products trash. AND I AM A LICENCED LIFE INSURANCE sales person who recommends term to my own clients.
Finally got out of one of those policies and invested the proceeds in the market. Should have done it years ago. I wish that I had heard this clear advice earlier.
Thank you soo much for this information. I bought this IUL thru my brother who is a life insurance agent now. We have this IUL for years and been paying monthly, minimum is $225, my husbands is $300. Omygosh, im so mad right now🤦♀️
Epic video but you are failing to include the credit card points you earn from paying the premiums, which provides a compounding element of return, especially after you take those credit card points and transfer them to airline miles at a 1.5x multiplier and then square root that vs the annual discount for premium air club members on business class to Europe. It’s free flights plus retirement plus life insurance.
Great effort to bias a good product. As a financial professional I never bias any company or product. Always talk about pros and cons.🤔. Buy Term and invest the difference.
yes, I was almost going to buy this crap a friend of mine did and not sure how is going to end up for him. I brought term instead and still invest with my ETF's and REITS.
I just had one of my wife's friends tell me about IULs and how you could take a loan out against the value and get money tax free. It sounded really complicated and I'm glad you made a video of it. I'll stick with my term life insurance and Roth IRA
So George, I would really love a video about your investments but more so specifically what you're invested in. I'm 21 and invest monthly into my ROTH IRA S&P 500, and my companies 401k. I just want to make sure I'm doing everything right!
I remember someone hitting me up on LinkedIn about this and I sat through a couple coaching calls. For starters, I did not have a good idea of what IUL was, so I gave them benefit of the doubt and listened in. When I was hearing what they were saying, I did not have a good gut feeling because it all sounded too good to be true. Indexing through a IUL was the way of the future and sure, people do get rich...the one's selling it. The 0% floor sounded great for asset protection in a market downturn but the 12% ceiling sounded terrible when the market is up more than 12%. Knowing what I know now about term life and investing the difference will beat out an IUL every time. Thanks to this explanation, I did not know dividends were not a thing. Dividends have been huge in my investment strategy and I have added thousands to my retirement. Some years are better than others but it's free money that is being reinvested.
If life insurance is such a scam and term life insurance is so much better, why do people buy it? Could it be possible that Ramsey gets a kick back from sanders insurance for every person that buys term life?
Why do people still buy the bad kind? Because most people are still complacent..almost brain dead...lazy ..and think they don't need a clue or want a clue think they know it all zombie sheeple. Idiots will believe tv ads..ya do t see term life insurance advertised NEARLY as much as whole aka cash value life insurance.. 😉 It's the same with the voting system Almost everyone thinks there are only two choice...red vs blue team..demonrat vs resnublican.. There has been a third choice and it's long overdue to be tried. Libertarian.
Tell me you did not watch the video without telling me you did not watch the video. The premium cost is substantially less between term and UNL. Take the difference and invest over a long period of time and you will have substantially more and no lingering fees
These thing are not bought. They are sold its very different. The sales people market this more because this is a cash cow. If you really undestand the product and have some integrity you will never sell this.
Only thing worse is what the government has been doing with social security, and what the gov did and are doing with cigarettes and gas taxes. Every politician involved in that should have to pay up and cast out of the country it's beyond criminal
only 1% of term policies pay out, that's why the premiums are low. not sure if anybody knows this or not but the difference between term and permanent is like renting and owning your home. one you rent for a. of time the other one you pay off and on for the rest of your life. permanent policies don't have to be just for investing. my permanent life insurance for final expense is less monthly premium than my term life insurance.
Another permanent life insurance goon with idiotic rhetoric. That’s the stupidest stat of all time. It doesn’t pay out if you don’t DIE. You should celebrate not dying.
Congrats on the growth of your channel George, also appreciate these nuggest, will i'm a stock investor stuff like insurances/mortgages are areas i'm learning new stuff on
Life insurance is protection against dying too soon. Like before your kids are grown up and moved out for example. It is by definition something you should eventually no longer need. Once your kids are moved out and on their own, your house is paid off, and you have enough to retire on you by definition don't need life insurance. Because if you die at that point your spouse/kids will be just fine. You don't need it when you are young and nobody is depending on your income and you don't need it when you are old and financially independent. You only need it for the (admittedly large) chunk of your life in the middle. Given this simple reality permanent life insurance just doesn't make any sense.
If the S&P 500 goes down by negative 18%, that actually means it went up (down & negative). So, if you want to indicate it went down, leave out the negative. You could also say it moved negative 18%. Otherwise, another great video!
Everything is spot on. Just one thing that was not talked about. Level vs Ascending IUL. You can call the insurance company and have them switch your policy from level to Ascending. Ascending IUL does let you keep the cash value plus the face amount and the level doesn’t. So you only talked about the level not the ascending. I still won’t recommend either but still good to know. Once you switch though the costs of the insurance also increases every year so less goes to the cash value.
But still its a crappy product. If someone needs to invest they should invest. Not have it in a life cash value policy. Like he said its a very bad idea to have one of these.
Too many so called “financial advisors” pushing many different forms of permanent life insurance. Very expensive…. Whatever happened to fiduciary responsibility?
Very few advisors follow the fiduciary standard. There is no law requiring them to do so. You have to ask them if they act as a fiduciary or not. Most will not tell you unless you ask because they don't want to admit that they are allowed to put their commissions ahead of your interests.
If you take out cash value on whole life insurance policy you only have to pay back the interest without taxes. You do not have to pay back the cash of what youve taken out of cash value. I have a question if you take out interest on what you invested in the sp500 yourself- what is the consequence of that? Although i agree whole life insurance isn't the way to build investment- it is a great way to leave geneerational wealth. Being able to take out the interest and put it towards childrens college and have a set interest rate on what youve taken out seems enticing..
And then every time the opportunity arises, they will cash out the policy and rob their family from the death benefit they intended to purchase in the beginning
I’m in a dilemma, my grandpa was drawn into selling these insurance plans, and when he explained it to me 3 years ago, it seemed like a good idea but now it’s pretty clear it’s not. I’m unsure how I would cancel the plan and I feel bad since my grandpa thinks it’s a good thing but I’m trying to do better with my finances. How should I go about it?
A whole web of misinformation on how IUL even works, it's clearly intentional and deliberate. Stick to what you know, pushing products that you and Ramsey get your own referral fees from.
You missed the actual benefit of UL style policies and that is the cash value isn't considered an asset because it's life insurance and if the death benefit is sufficiently great enough you can over fund the policy. Are they vehicles for wealth accumulation? No, but they can be used very effectively to shield already acquired wealth in certain situations.
Dave Ramsey says it best buy term and invest the difference..IUL are trash…unfortunately most people buy this highly misleading product..if you have a series 65 license they can’t say this because they will lose their licenses
I have so much to learn, at least you make it entertaining with witty puns. At the beginning of the pandemic, I realized we are all slaves and they want us to stay slaves. Since then I have never been more motivated to never hav debt again! Student loans paid off, car note paid off. I'll be driving it til it dies, and then I'll paying cash for a used car.7 years left on my mortgage which I hope to have paid off by the summer time.
Hi George so we have life insurance and we don't have much knowledge when we signed up that time. We only paid premium for 3 years already. Question should we get the money and stop paying our premium? Should I just switch life insurance or don't enroll at all? Thanks
Based on who’s into this stuff, at least from what I can see - minorities are being targeted on this one. It sucks and it’s sad, you can tell who the target demographic is because it’s rappers and athletes who have MILLIONS saying this is what you should do. They’re on the take.
You actually can get both the life insurance and cash value. Depends on if you put level or increasing when you write it. You also have a 3rd option of return of premium. So please get the facts. If you want only the death benefit, then it's level. You want your cash value upon death, you put increasing.
Whole Life Insurance is worth it if you can balance both investments of investing into the market and this as well. The premium is not bad if you are in your early 20s and by the time you pay it off every month by the time you are 40s then you will have a cash value to use while you are insured upwards of $100k for example. I have a policy myself and its been growing since 2018 and I have not touched it. I think its a safe investment to diversify your portfolio. The insurance policy I have is custom whole life insurance.
The issue I have with this is, what happens if someone doesnt do all the things Dave says to do and when their term expires and they have no money left over and no insurance. I have a family member who's term policy just ended and she cany get new insurance and has no money. Ideally someone does what Dave says to do, but many people dont.
You become self-insured if you follow our plan for 15-20 years. Paid for house, no debt, savings in the bank, plenty of money in retirement. You can also get more than one policy to extend/ladder it.
I’m a 16 year full time insurance agent that sells term and whole life. First of all universal life in not permanent life insurance. whole life is the only permanent life insurance that never ends and prices never go up. Universal life insurance is just a term policy that your over paying for. The amount you over pay is the money that is being invested in the stock market. And many people especially older seniors just want a permanent policy that does not end and does not go up in price to cover funeral cost. Reason being is because a large part of the population don’t have money to cover funeral cost and are broke and most will always be broke for most of their lives. If you only knew the huge amount of disgruntled broke seniors I have talked to because their term policy ended and they are too old or too unhealthy to buy a whole life policy when all they want is a $10,000 whole life policy to cover funeral cost. Many don’t care about the cash value. The key is that the policy never ends and never goes up in cost.
It's not complicated. It's actually really easy. You should not do infinite banking with indexed universal life. You do it with a dividend paying whole life insurance policy.
@@Fe.Y.Finanzas that's not true these companies reinvest the extra amount of the premium. The difference is that they are not tied to stocks or bonds. They invest in real estate or life settlements. If these companies would pay those extra premiums as the dividends, then they would officially be ponze schemes. There is no way an insurance company could sustain itself that way.
@lexlopez1981 you can do the same with a term insurance for a fraction of the cost. Whole life policies charge you way more for the illusion of the cash value because they keep it. There is not a single agent that explain this to clients. Because not one will buy this.
George I know you just do what Dave says but on this subject you were wrong so why don’t you just bring on a life insurance professional and make a video No I am not an insurance agent I am retired and I use my universal life for different reasons
I don’t “just do what Dave says”. I uncover money traps meant to make other people rich and keep you broke. Don’t come at me with “why I’m wrong” with zero facts and numbers.
@@Dianemc79 I did explain Are use mine because I am 66 and expected to die within 5 to 10 years because of a disease So this allows me to use universal life so I can get a big portion of the death benefit while I’m living And then death benefit helps to pay for the healthcare that I am incurring But there are many other uses of it and I just don’t understand when I stated twice simply bring somebody on the station who works in that business and who is known to be a professional and simply interview them Anything short of that would be tabloid financial news Example if the station was all about Hondas and only Hondas are the best Should I bring on a Toyota representative so we can hear both sides of the story
