Anybody want to shoot some holes in this?

[DHK]

Life Insurance is Not for Saving - The Belle Curve

I can't stand articles like these. But you KNOW that, if you're selling WL or IUL, that your prospects MAY come up with articles like these as reasons NOT to buy from you.

How would YOU respond to this blog post by a "Fiduciary Securities Adviser"?

(First step, classify your opponent/competition - just like Trump does. This is an investment adviser, and certainly not well versed in life insurance strategies.)

 

[rousemark]

Life Insurance is Not for Saving - The Belle Curve

I can't stand articles like these. But you KNOW that, if you're selling WL or IUL, that your prospects MAY come up with articles like these as reasons NOT to buy from you.

How would YOU respond to this blog post by a "Fiduciary Securities Adviser"?

(First step, classify your opponent/competition - just like Trump does. This is an investment adviser, and certainly not well versed in life insurance strategies.)

Been a long time since I worked that market but do companies not still have "wash" loans on their UL products, where they pay the same interest rates that is charged on any funds standing as collateral for the loan.

 

[DHK]

I'm sure many do, but there are variable loans where the amount of the loan has no bearing on the amount of interest earned on the policy... and just subtract the amount of the loan interest due each year. It is possible to have a positive arbitrage on that situation - depending on the policy/company, etc.

 

[DHK]

The real advantage is that policy loans are taken AGAINST the cash values, not "from" them.

That means if you have a $1,000,000 cash value policy and you want to take out a $40,000 loan, the original $1,000,000 still grows uninterrupted... you just pay a little loan interest based on the $40,000 loan.

 

[jboussea]

This is a copy and paste job .... same old tired article.. there are a million of these posts on the internet.

 

[rousemark]

The real advantage is that policy loans are taken AGAINST the cash values, not "from" them.

That means if you have a $1,000,000 cash value policy and you want to take out a $40,000 loan, the original $1,000,000 still grows uninterrupted... you just pay a little loan interest based on the $40,000 loan.

And back when I was selling UL, there would be no interest paid on the loan because the interest charged on the $40K would be the same as the amount paid on the $40K.. The balance of the $1M would continue to be credited the current rate.

 

[Lloyds of Lubbock]

People that are asset managers always put down permanent insurance.
They look at it a takeaway from their assets under management.
They like to talk about commissions even though over time their fees are greater than life commissions and renewals.
They look at life insurance as a stand alone product.
They make no mention of how it integrates with your other assets.
No mention of features like creditor protection depending on state.
Waiver, GIO features and LTC riders, tax free distributions
I am always suspicious of someone who promotes themselves by knocking someone else's product or service rather than extolling the virtue of theirs.
Lets not say loans are free, there is a cost and a reduction of death benefit.