Looking for properly designed EIUL from NA

[DHK]

Knock yourself out. I wouldn't touch this guy. His risk/reward matrix is all messed up. Put him in something that matches his risk, he'll complain about returns. Put him in something that matches his reward, he'll complain about losses and volatility.

I know it.

I will say this, the vast majority of people who say they are comfortable with higher risk for higher reward are lying. As soon as they have a bad year, they will be blaming you and calling you every name under the sun.

And that's exactly what FINRA confirms with their Financial Capability study every 4 years or so.

Financial Capability Study

Just look at page 18 on people's willingness to take risks:
http://www.usfinancialcapability.org/downloads/NFCS_2015_Report_Natl_Findings.pdf

 

[js44]

I know it.



And that's exactly what FINRA confirms with their Financial Capability study every 4 years or so.

Financial Capability Study

Just look at page 18 on people's willingness to take risks:
http://www.usfinancialcapability.org/downloads/NFCS_2015_Report_Natl_Findings.pdf

A simple comparison between S&P returns and IUL returns from the lost decade would prove which is better. Instead of offering to compare, you guys are talking utter nonsense to cover up IUL pitfalls. Of course, what else can we expect from IUL agents? Have a good day, gentlemen!

 

[VolAgent]

A simple comparison between S&P returns and IUL returns from the lost decade would prove which is better. Instead of offering to compare, you guys are talking utter nonsense to cover up IUL pitfalls. Of course, what else can we expect from IUL agents? Have a good day, gentlemen!

You keep thinking these are equivalents, they aren't.

An IUL is simply an insurance policy designed to have a potential for higher rewards than standard current assumption UL. I would never put S&P money into an IUL. But an IUL would be good for safer money that might have otherwise gone into bonds.

That is what you keep missing. Unfortunately there are agents out there who peddle IULs as a replacement for stocks and mutual funds. It muddies the water and people get a false idea of what an IUL is. Then they get disappointed when the market goes up 20% but their IUL only returns 10 or 14. Of course, they also forget when the market goes down 20% but their IUL stays even or even manages a small gain.

Finally, its still life insurance. So there are costs associated with life insurance that will always be a drag on performance. Yet, it offers money at death that can be vastly more than the cash value. Something stocks and funds will never do.

 

[js44]

You keep thinking these are equivalents, they aren't.

An IUL is simply an insurance policy designed to have a potential for higher rewards than standard current assumption UL. I would never put S&P money into an IUL. But an IUL would be good for safer money that might have otherwise gone into bonds.

Thanks, that's an honest answer. First time, I have heard this from an agent. All others compare IUL to S&P mutual funds.

 

[VolAgent]

Thanks, that's an honest answer. First time, I have heard this from an agent. All others compare IUL to S&P mutual funds.

Then you really should re-read this thread. Unless I missed it, no one tried to say they are the same. We've been trying to tell you they aren't, and they definitely aren't the same as using options.

 

[js44]

Then you really should re-read this thread. Unless I missed it, no one tried to say they are the same. We've been trying to tell you they aren't, and they definitely aren't the same as using options.

I meant, other agents in general, not from this forum.

Anyway, if the insurance company can keep it's promise of life long policy with a shot at S&P gains, then I am for it but I see the risk has been transferred back to the policy holder.

 

[pfg1]

Thanks, that's an honest answer. First time, I have heard this from an agent. All others compare IUL to S&P mutual funds.

I don't think most agents that know much would compare perm life to stock market returns. I've not seen that here or out in the real world. Its the uneducated agents/advisors that might mention that.

As I mentioned on another page...

That is why I use WL alot. When properly designed and funded, it can have a very nice long term IRR, without the worries of no guarantees. In addition to a good investment strategy, you have a non correlated asset that gives a bond like return (or better). I think having BOTH cash value ins and investments is key to a well balanced portfolio, even more so if you are married with a family.

A properly designed perm life policy can give a nice return - but at the end of the day, its an insurance policy NOT an investment. You can design a WL that will have a 4.5% IRR by year 10, not too shabby for an insurance policy. And it would likely be mid 5's long term. Again, its a non (stock market) correlated asset giving bond like returns or better. IUL can potentially return more... lately they have done very well.

Do your investments, do your options, and put some PLI in place also (IUL or WL). They all have their place.

 

[DHK]

I don't think most agents that know much would compare perm life to stock market returns. I've not seen that here or out in the real world. Its the uneducated agents/advisors that might mention that.

I can compare all of that - the question is this: is it being compared on multiple levels and dimensions? There's a LOT of various benefits to owning permanent life insurance that is not available anywhere else.

Actually, the most direct comparison of owning permanent life insurance is owning a home. I created a comparison matrix on 24 different points comparing PLI and home ownership. There is really only one downside against PLI in that comparison and that is non-deductible (interest) payments. The other downside is shared with owning a home, and that is if you quit the plan too soon, you're highly unlikely to get your money back.

 

[pfg1]

I can compare all of that - the question is this: is it being compared on multiple levels and dimensions? There's a LOT of various benefits to owning permanent life insurance that is not available anywhere else.

Actually, the most direct comparison of owning permanent life insurance is owning a home. I created a comparison matrix on 24 different points comparing PLI and home ownership. There is really only one downside against PLI in that comparison and that is non-deductible (interest) payments. The other downside is shared with owning a home, and that is if you quit the plan too soon, you're highly unlikely to get your money back.

Right, but my post was in regard to people that don't know better will sometimes compare PLI returns to the stock market. Especially the new and/or uneducated MLM IUL agents.