Ok, so IUL's have gotten my attention ...
- Thread starter DayTimer
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Not my video, but I did upload it to my channel. 
Rob Lion
Guru
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People like to do this and the infinite banking strategy with whole life policies.
Are you buying one for yourself or thinking of offering them?
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Definitely looking to buy one for myself. I have one carrier with whom I am paid as-earned, and I have a second that I am about to switch to as-earned. I’ve been using the as-earned commissions to fund contributions to my retirement accounts. I’m thinking why not use that as-earned to fully fund and IUL?
I’d also consider offering them. But for now I’m a final expense guy. This looks to be a product for a very different demographic. But when fully funded, if this video is accurate, this product is capable of providing amazing benefits.
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- #6
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I have seen this mentioned also recently in some of the Life Insurance FB groups.
Life insurance? Who knew what magic it is capable of doing and didn’t tell me?
Not my video, but I did upload it to my channel.
Didn’t mean to imply that you hadn’t stolen it. All credit to you, the Master Thief
Don’t worry ... I’m not stealing it from you. I’m just borrowing for a time. It will be right here so you can watch anytime you’d like.
I have a contract with North American that I have never used. I logged in to their agent portal last night and I am starting their IUL course. I also believe there is a continuing education course available on ExamFX that covers or maybe even focuses on IUL’s. I’m in learning mode.
The irony in all this is that I have very good friend who is the President of a large real estate firm in the area. He called me yesterday telling me he wasn’t happy with his returns in spite of the market being up huge the past couple of years and wanted to know if I had any ideas for him. I told him I’d look into it though it wasn’t my area of focus.
I just might have “found” a very good idea for him. Ok ... I might be able to acquire a good idea for him through a bit of thievery. For now, I’m just casing the joint.
Better lay low for a bit ...
My concerns with IUL are the unknowns (like caps and rates, cost of insurance, cost of options, etc), and whether the client funds it properly or not. I believe that as long as its designed properly and over funded it should be fine. However caps are coming down across the board, and we don't know the future. Plus what is outlined in most every IUL sales pitch has never happened. Fund it for 25yrs, then take income out for 30-40yrs. The product hasn't even been out for 25yrs. If everything lines up, it should do well.... but we just don't know.
Not being a negative nancy, just sharing some thoughts. I personally like WL better most of the time because its guaranteed and you can turn it off. Plus if you take an IUL and get 3-4 zeros in each 10yr period, it looks like a WL policy anyhow but with nowhere near the guarantees. I do sell IUL (just not as often as WL). When I have people with extremely fluctuating incomes, its a super fit for those folks due to the extreme flexibility in that regard. Anyone using this type of planning... you have to overfund, imho.
Not being a negative nancy, just sharing some thoughts. I personally like WL better most of the time because its guaranteed and you can turn it off. Plus if you take an IUL and get 3-4 zeros in each 10yr period, it looks like a WL policy anyhow but with nowhere near the guarantees. I do sell IUL (just not as often as WL). When I have people with extremely fluctuating incomes, its a super fit for those folks due to the extreme flexibility in that regard. Anyone using this type of planning... you have to overfund, imho.
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Well I'm learning. I have about a $1000/month contribution I've been making to my brokerage accounts that I'd like to re-direct into an IUL or WL. I ran some illustrations at North American using the Builder IUL and also at KSKJ looking at their underwritten whole life.
Death benefit is important to me, as I have large term policies that will go away in about ten more years. At the same time, I'd like something that will also allow for access to tax free cash value.
The fact that this is of interest to me tells me that it is probably of interest to others as well, as I don't think my situation is all that uncommon.
One thing I will say is I wish I had been advised to do this when I was 31 or even 41 rather than waiting until I was 51/52.
I'm an FE Guy, so out of my depth here for now, but I plan on getting proficient in this end of the pool soon.
Do your homework. Just be sure to not count out WL, its a very strong product that if designed and funded properly is fantastic. Most of the companies are on the IUL bandwagon, its the hot seller and they will guide you towards it -even if they have WL. Keep in mind that many carriers that push IUL - DO NOT offer a quality WL at all. I would stay away from leveraged IUL products... those will be trouble down the road. NA/Midland is a solid carrier with a good IUL product, and there are others. Penn, National Life/LSW, AIG, Allianz, and others.
I believe this type of planning has alot of value, and most folks can benefit from it in some way. I don't believe its a replacement for saving and equities investing, rather a compliment to them.
If you plan to look into, purchase or sell max funded WL, I would only consider a quality dividend paying mutual. Penn, Mass, Guardian, Lafayette, ON, etc.
And I agree, I wish I knew about this when I was 25!
I believe this type of planning has alot of value, and most folks can benefit from it in some way. I don't believe its a replacement for saving and equities investing, rather a compliment to them.
If you plan to look into, purchase or sell max funded WL, I would only consider a quality dividend paying mutual. Penn, Mass, Guardian, Lafayette, ON, etc.
And I agree, I wish I knew about this when I was 25!
I believe that a lot of your concern about IUL non guarantee "levers" so to speak is rolled up into the "dividend" of WL .. The key is to go with a company who's in competition.. Does the company have an incentive to keep their cap rates, par rate etc.. competitive?
The biggest difference between the 2 IMO .. is that IUL allows for faster break even because of the GPT test .. on the upside for WL ... once you get to break even you get guarantee to get a dividend and you know exactly what you're getting.
