Discover the different kinds of Life Insurance and why you need the right kind when you're building wealth with IBC. Learn More Here: www.life-benefi... 1-866-502-2777
Full disclosure i am a life agent. National life group does allow for the (IUL)policy owner to take out a loan, use the cash value as collateral, and earn interest and use the the death benefit to pay off any outstanding interest that the policy has accrued. A lot of companies do not offer riders that waive surrender charges in the first 10 years. National life group does. I understand columbus and Lafayette insurance allow whole life structures like Nelson Nash recommends. I also understand that all whole life policies have and infinite way of structuring in addition so does IUL’s. It is all based on the client needs there is mot a one shoe fits all. I am purely raising awareness. I too am appointed with columbus, Lafayette and national life group. Great explanation! By the way!
Thanks for sharing your perspective Trevor. We're not opposed to IUL just for the sake of making a statement, but do not believe it's worth taking the extra risk... especially for what we teach. We like to sleep at night knowing that the insurance company is giving max guarantees and minimizing our risk.
I appreciate these videos. I am a user of the concept. I am also a user of IUL policies and some of the things you talked about in this videos are generalizations about that product. Much like we don't like people to generalize whole life and what it does, generalizing UIL isn't good either.
A lot of great points just wondering why you focused so much on single premiums and steered clear of monthly premiums Otherwise excellent presentation on UL and term.
+Kiki Ferris Good question. Answer = Because all life insurance premiums are based on an Annual mode. Monthly, Quarterly or Semi-Annual premiums are based on the Annual amount + an interest component. Its almost like the insurance company is lending you the premium for the whole year in advance and you're repaying that loan.
I have both types of policies and honestly each operate for a specific purpose and each has pros and cons. I know that the "worry" of things that can be changed is a big argument against IUL. Consider though, the fact that if a company is doing all kinds of "changes" who is going to stick with that company? It's a mute point really. I've compared and honestly cant see an substantial benefit difference for what I use MY policies for. Thanks again for all your work spreading the truth!
Glad you enjoy the videos we make available. This specific video was meant to be a general overview of several different types of life insurance. The reason we don’t ever recommend IUL to our clients is because of the extra risk that a policy holder incurs. We would encourage you to read a Whole Life contract and an IUL contract side by side. Highlight all the things that “can be changed” by the insurance company and please compare the two.
Hi, my dad payed his term life insurance policy (Metlife) in time when he passed away but Metlife delayed the payout for 13 years. YES! 13 years when he passed away and I'm still waiting. how much in penalty interests do I get back from oh say $500,000 or higher or even if we get the money. My mom hired an insurance lawyer last summer and not much progress has been made.. Do you have a good answer for this because I can't seem to find one.
Bummer. What excuse is the insurance company using for not paying in a timely manner? Usually these kind of delays only occur when there is no proof of death or when a death occurred under suspicious circumstances.
Hello, my name is William Your incorrect by calling it Single Premium life insurance There are 2 types of life insurance. Permanent,(Single Premium Whole, Whole Life,Universal, Variable, variable-universal) and Term. Paid-up additional insurance is available as a type of whole life insurance rider.(according to investopediia)
There are many different products William, but all the products you mentioned are combinations in some shape or form of the 2 basic types of insurance: Single Premium and Term. Take Universal Life Insurance (UL) as an example...all UL products are based on One-Year Renewable Term Insurance (OYT) with "extra" premium going into a cash fund, variable separate accounts or an indexed account depending on the type of UL product. This is why many UL products implode as the cost of the term insurance rises near age 65 and beyond.
hi, i have a universal life insurance (face value of $250,000) i opened when i was single at 23yrs old (2004). Now (11yrs later), i have a family with kids. I was wondering if I should keep my UL insurance because an agent came to me and suggesting to close it and open a Term Insurance instead. She keep saying term is cheaper and that I should invest the difference. I'm not too sure what to do at this point. Thanks.
+rakistang pinoy since you have been funding your current UL policy for 11 years it is wise to be cautious when someone tells you to close it. If you email team@life-benefits.com or call the office 1-866-502-2777 we'd be happy to look at your situation and provide you with 2nd opinion. There's no charge just email or call and we'll help you however we can. - Life Benefits Team
Got you Duane. I went for Term Insurance and finally understood just what I need. If I had saved all those years, i should have more money than my CSV which I got only $600. Buy Term, Invest the difference works for me.
Makes sense. UL products are a hybrid version of Buy Term and Invest the Difference so its hard to say how they will match up without looking at the policy. Often they will include more fees than straight Buy Term and Invest the Difference. On the other hand, if you look at a Whole Life policy that is designed correctly (as in this video) it can outperform Buy Term and Invest the Difference hands down. Term insurance can be very good for awhile, but not forever, so be sure to keep this in mind. We would encourage you to look at a well-designed Whole Life Insurance policy in addition to your term coverage. If you'd like to see how this works with your numbers give us a call at 702-660-7000.
The type of insurance that is best for you depends on the problem you are trying to solve. Term life is great if you only need temporary protection such as paying off a mortgage in the event of an early death or providing for care and education of minor children. Universal Life, if properly structured, provides permanent life insurance as long as you keep up the payments and also builds cash value that can be accessed tax-free for retirement or other financial needs throughout your life. Generally, the longer you have had the Universal Life policy, the less sense the conversion back to term and invest the difference makes because Universal Life fees tend to be more in the early years but less in the later years when compared to other investments.
NO - KEEP it!!! Insurance is much more expensive now that you are older. You should keep what you have AND get an additional term or whole life. You also have the ablity to overfund your UL - do that - it will build cash value - so you will have a retirement fund all the while also having life insurance on yourself. TERM does not build cash value. Sorry - but she is just trying to make a sale. She is not looking out for you on all sides AND WHAT IS BEST FOR YOU!
As a financial advisor holding a life insurance license, i would like to say it is totally BS to advocate using life insurance for wealth building. It might be used for estate planning but it is not one fit for all.
