EIUL and Mortgages

[Crabcake Johnny]

I think it's safe to say that the only people pitching taking equity and transferring to any life vehicle are life insurance agents. Life companies can't promote stuff like this enough since duh....it results in sales. Mortgage brokers can't slam people with "re-fi's" enough because....well it gets them commission.

And this is where the conversation goes downhill. I recommend a fee-based financial advisor/planner who's been in business 10+ years and community based - meaning he's local. Then you'll get some solid advice.

I'm also a "if you don't have it yourself then...." meaning if any life agent recommended a home equity loan to me to buy an EUIL I'd want to see proof they've done the same.

 

[James]

None of this stuff is all that new, yet without a doubt one has to use common sense and real numbers! While 6% is a good number to use with companies that have long standing historically good management like MM, NYL, Guardian, MTL or even low loads such as Ameritas and USAA if short term is to be protected. Problem with F&G they seem to be willing to allow Agents illustrate figures like 9% to be used or use too if my memory serves me correctly along with other companies.

 

[James]

I think it's safe to say that the only people pitching taking equity and transferring to any life vehicle are life insurance agents. Life companies can't promote stuff like this enough since duh....it results in sales. Mortgage brokers can't slam people with "re-fi's" enough because....well it gets them commission.

Well you have a point, I would assume most that promote taking the equity of the home and placing it in Bonds is making a commission or a fee, I don't know but sounds like "Stating the Obvious".

I'm also a "if you don't have it yourself then...." meaning if any life agent recommended a home equity loan to me to buy an EUIL I'd want to see proof they've done the same.

Now I can agree with that, Own what you Sell!

 

[somarco]

There are a lot of issues with F&G, including their willingness to let any swinging dick with a plan to sell a bunch of premium become a GA.

 

[James]

There are a lot of issues with F&G, including their willingness to let any swinging dick with a plan to sell a bunch of premium become a GA.

I haven't look at them since I left NAA. Yet I am starting to think Ind. Life is no better.

 

[Crabcake Johnny]

Agreed that equity can be erased quickly for a lot of reasons. ****, just the area going downhill can wipe that out. Also, just because you need to sell yours house doesn't mean it's gonna sell. My father-in-laws neighbor has had his house on the market for over a year. A few nibbles, no bites.

What we really need to talk about is the savings rate and people actually depending on their equity to bail them out of any tough situation while saving next to nothing.

 

[James]

What we really need to talk about is the savings rate and people actually depending on their equity to bail them out of any tough situation while saving next to nothing.

Much to do about nothing, I'll leave that do the likes of Suze Orman and Dave Ramsey since they are already addressing these issues.

 

[Crabcake Johnny]

We can also discuss that the average American can only go three months without pay before financial ruin.

 

[James]

We can also discuss that the average American can only go three months without pay before financial ruin.

And yet we just keep on moving on, wonder how we do it???

 

[Crabcake Johnny]

Because out of all the worst case scenarios we can dig up and all the articles we can pull up of people getting major illnesses or disablities the simply fact is this; an overwhelming majority of people will do just fine. Most peoples' biggest problem in this country are when two shows are on at the same time.