Leap, Ibc, Cow
- Thread starter David C
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For one thing Leap is a software where IBC is a theory or marketing and usage of insurance. IBC while sound in principle yet the usage of Insurance to stuff excess money tends to bring out emotions pro and con of the idea. Obviously COW is a software I assume, but I don't know much about it.
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IBC basically suggests you put all your money in permanent insurance. That becomes your bank. When you need money you borrow from your bank at prime rates.
Sounds good on paper but I see no reason for putting all, or substantially all of your assets in perm life insurance. I dont have a problem with perm. It has a place but not for all your money.
The service aspects required to make sure the policies do not lapse can be a real challenge. If you screw up and fail to monitor the borrowing & payback guess who gets to defend themselves?
This message brought to you by the letters E and O . . .
Sounds good on paper but I see no reason for putting all, or substantially all of your assets in perm life insurance. I dont have a problem with perm. It has a place but not for all your money.
The service aspects required to make sure the policies do not lapse can be a real challenge. If you screw up and fail to monitor the borrowing & payback guess who gets to defend themselves?
This message brought to you by the letters E and O . . .
$3500 for COW. Geez!
Looks like a hook for agents who need something glitzy to sell life insurance.
I never bought into all the fancy sales pitches for life insurance. Figure all you need to do is find the need, find the money.
Back when I was in an agency the big thing was vanishing premium illustrations. In some cases we were taught to take orphan leads and show them how to roll money out of old policies with 3% loan rates into newer policies.
Fortunately I never did any of that so it never came back to bite me.
KISS.
Makes life a lot easier.
Looks like a hook for agents who need something glitzy to sell life insurance.
I never bought into all the fancy sales pitches for life insurance. Figure all you need to do is find the need, find the money.
Back when I was in an agency the big thing was vanishing premium illustrations. In some cases we were taught to take orphan leads and show them how to roll money out of old policies with 3% loan rates into newer policies.
Fortunately I never did any of that so it never came back to bite me.
KISS.
Makes life a lot easier.
Most of these programs, Missed Fortune included, are run by FMOs or FMOwannabes in order to get an override on your commission.
The concepts make sense, the product choices don't. For example, in Dougie Andrew's newest Missed Fortune book, he's still using a 17% capp EIUL from F&G. Gee, do you not think that would be a great example to use?
The biggest hurdle to overcome will always be client access to the money. Therefore, the higher commission paying products will reduce client access. You need to fully understand the product comparisons first.
Other than that, take a look at Midland National, they appoint direct.
The concepts make sense, the product choices don't. For example, in Dougie Andrew's newest Missed Fortune book, he's still using a 17% capp EIUL from F&G. Gee, do you not think that would be a great example to use?
The biggest hurdle to overcome will always be client access to the money. Therefore, the higher commission paying products will reduce client access. You need to fully understand the product comparisons first.
Other than that, take a look at Midland National, they appoint direct.
Well I can speak from experience on two these concepts. I have used the Missed Fortune concept but I mostly use Indy Life and I have used the IBC with some of my clients. When you use a VUL as the permanent vehicle then is really attractive with the returns. Monitoring is needed though also a nice Excess Intrest WL or EIUL would do. These are great concepts that have their place, they are not for every client. I sell alot of Perm with my business clients average annual prem is usually 35K. Perm has its place with everyone, how much is the question.
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For these ideas to work I would imagine that one would have to use the best and cheapest plans, speaking of course dollar to dollar comparison. Such as Mass Mutual, NYL, Guardian WL's and UL's but yet I'm not sure if these companies would appreciate such marketing tactics being employed to sell their products? I know F&G and Ind. Life is hot on these tactics but I have never seen any of the solid Mutuals jumping on the bandwagon? Now I'm speaking about the marketing of IBC and MF not the idea of heavily funded policies, I'm sure all of the big Mutuals would go along with Cash being placed inside of their products but not sure about the marketing end of it? IMHO, NYL or MM would not appreciate their names or products being promoted during a Missed Fortune Seminar.
Atlas
Expert
David,
If I had to pick one of them to use, it would be IBC. It is far better and more simple than LEAP or COW. IBC will work best ONLY with a good Par WL from a good mutual or mutual holding company.
One of the reasons why VLU will not work with IBC is when you take your cash out of a VUL or VL you will not still earn interest on your money. IBC can not work with VUL or VL for that one reason. With Par WL you will still earn dividends as long as it is non direct recognition company like Northwestern Mutual.
With NYL, Mass, Mutual Trust, Ohio National and Illinois Mutual when you take a policy loan it WILL NOT cut your dividends any at all. You'll still earn the dividends even without your cash inside the policy. They that with a VUL and see if you'll still earn interest when your cash is outside the policy.
If you are going to use IBC you must do so only with a Par WL. If you can not still earn interest ( dividends ) with the money outside of the policy. I have no idea what the other guy is doing but he is not doing IBC. IBC falls apart unless you can earn the interest outside of the policy.
The other reason why IBC will not work with a VUL or VL is this. A VLU or VL CAN NOT have a paid up additions rider. There is no such thing with either policy. Therefore IBC can not work with a VLU of VL for this reason as well. The reason why you must have paid up additions is because those paid up additions will also earn dividends. No VLU or VL can do this ever.
IBC intends for you to buy as small of an ammount of life insurance policy as possible. It must be as close to a MEC as possible. That will maximize the cash value and dividends quickly. It will also make the life insurance cost as small as possible. IBC is not used for death benefit at all. It is only to be used for getting the cash vale high A.S.A.P.
I do not think some understand IBC or they have not read the book. It is very simple to understand. I have no idea how some folks came to the ideas that they have came to. I do not use IBC, but I have read the book and saw Mr. Nelson Nash give his pitch in person. I understand IBC 100%. It is very easy to understand. It will work, but I never have used it, nor do I need to.
If I had to pick one of them to use, it would be IBC. It is far better and more simple than LEAP or COW. IBC will work best ONLY with a good Par WL from a good mutual or mutual holding company.
One of the reasons why VLU will not work with IBC is when you take your cash out of a VUL or VL you will not still earn interest on your money. IBC can not work with VUL or VL for that one reason. With Par WL you will still earn dividends as long as it is non direct recognition company like Northwestern Mutual.
With NYL, Mass, Mutual Trust, Ohio National and Illinois Mutual when you take a policy loan it WILL NOT cut your dividends any at all. You'll still earn the dividends even without your cash inside the policy. They that with a VUL and see if you'll still earn interest when your cash is outside the policy.
If you are going to use IBC you must do so only with a Par WL. If you can not still earn interest ( dividends ) with the money outside of the policy. I have no idea what the other guy is doing but he is not doing IBC. IBC falls apart unless you can earn the interest outside of the policy.
The other reason why IBC will not work with a VUL or VL is this. A VLU or VL CAN NOT have a paid up additions rider. There is no such thing with either policy. Therefore IBC can not work with a VLU of VL for this reason as well. The reason why you must have paid up additions is because those paid up additions will also earn dividends. No VLU or VL can do this ever.
IBC intends for you to buy as small of an ammount of life insurance policy as possible. It must be as close to a MEC as possible. That will maximize the cash value and dividends quickly. It will also make the life insurance cost as small as possible. IBC is not used for death benefit at all. It is only to be used for getting the cash vale high A.S.A.P.
I do not think some understand IBC or they have not read the book. It is very simple to understand. I have no idea how some folks came to the ideas that they have came to. I do not use IBC, but I have read the book and saw Mr. Nelson Nash give his pitch in person. I understand IBC 100%. It is very easy to understand. It will work, but I never have used it, nor do I need to.
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