IUL Vs WL

[Norwayguy]

Everything looks amazing on an illustration. Remember though, it only takes a single year to make your illustration worthless.

The real beauty of the IUL isn't the hypothetical good years of growth, it's the downside protection. You don't need to illustrate it damn near double digit growth to make it powerful. Hell, just show them how an indexed product would've performed during the the 2000s.

Instead of losing 30% in 2008 and 2009, you would have lost nothing.

To answer the question it is not that powerful. For some reason even though I set the clients date of birth as 11/01/1985 to make him 28 and it showed on the illustration age 28 it showed an insurance age of 0. Really strange as the illustration showed the premiums like I said of 75 per month from age 28 to 65 but it really was calculating from age 0. Initial death benefit is 40,095 with a projected cash value at 65 as $62,871.46.

My point though was a client can max fund a policy under 100k and it can still work. Obviously if the client has the funds for a larger policy he will typically benefit from decreased cost of insurance if healthy. As my illustration only allows for standard under a $250K death benefit.

 

[MisterRandyWatson]

To answer the question it is not that powerful. For some reason even though I set the clients date of birth as 11/01/1985 to make him 28 and it showed on the illustration age 28 it showed an insurance age of 0. Really strange as the illustration showed the premiums like I said of 75 per month from age 28 to 65 but it really was calculating from age 0. Initial death benefit is 40,095 with a projected cash value at 65 as $62,871.46.

My point though was a client can max fund a policy under 100k and it can still work. Obviously if the client has the funds for a larger policy he will typically benefit from decreased cost of insurance if healthy. As my illustration only allows for standard under a $250K death benefit.

Big difference.

So to clarify, you can indeed max fund a 40k IUL with 75 dollars.

Pro tip: don't max fund a 40k IUL.

 

[placer61]

At your age, to build up tax-free savings down the long road, you need a Roth IRA. Go to Fidelity or Vanguard and see what they have.

 

[DHK]

You're an ***. (twenty characters)

 

[scottstreet]

Placer, been listening to suzie or your sales mngr?

 

[placer61]

Nice responses. Do your parents' know that you are using their computer?

This is what happens when life insurance salesmen advise people on saving for retirement, which the OP was looking for.

 

[critter]

Nice responses. Do your parents' know that you are using their computer? This is what happens when life insurance salesmen advise people on saving for retirement, which the OP was looking for.

Wrong. The OP never mentioned saving for retirement. He mentioned cash accumulation, which could be for many things. This is what happens when buy term and invest the difference guys advise people on just about anything.

Just out of curiosity, what would your advice be for a 28 year old attorney making $135,000 per year who is getting married next year? He has no retirement plan at work and minimal life and disability insurance in place.

 

[GreenSky]

Wrong. The OP never mentioned saving for retirement. He mentioned cash accumulation, which could be for many things. This is what happens when buy term and invest the difference guys advise people on just about anything.

Just out of curiosity, what would your advice be for a 28 year old attorney making $135,000 per year who is getting married next year? He has no retirement plan at work and minimal life and disability insurance in place.

1) Don't get married
2) See #1

Rick

 

[DHK]

Nice responses. Do your parents' know that you are using their computer?

This is what happens when life insurance salesmen advise people on saving for retirement, which the OP was looking for.

Oh, so you're securities licensed??? Does your compliance officer know that you're using your computer??? You know that all public posts are supposed to be pre-approved in advance, right?

This is what happens when securities reps who have a "holier than thou" attitude try to advise people on the internet.

They also don't know that a Roth IRA is just life insurance... without the life insurance part.

 

[bobson]

Oh, so you're securities licensed??? Does your compliance officer know that you're using your computer??? You know that all public posts are supposed to be pre-approved in advance, right?

This is what happens when securities reps who have a "holier than thou" attitude try to advise people on the internet.

They also don't know that a Roth IRA is just life insurance... without the life insurance part.

Can you point to a single example where a person that bought securities via a registered rep lost money? Huh? Can you?