The IUL conundrum: big sales and big problems

[Sheryl J Moore]

He specifically said, "THIS IS HOW BILLIONAIRES GET RICH!" I can't hold my breath until the regulators get social media enforcement. Good Lord!

 

[DHK]

He specifically said, "THIS IS HOW BILLIONAIRES GET RICH!" I can't hold my breath until the regulators get social media enforcement. Good Lord!

Geez.

I tell people there are only 3 kinds of financial plans:
1) Safe & Secure
2) Comfortable
3) Plan to be rich.

I always tell people that no financial planner will make anyone rich. We can help preserve wealth, pass it on to the next generation with quality planning, but planners don't make people rich.

Now, if this was about Curtis Ray, he does talk about his investigation by the State of Washington's DOI and using life insurance as a source of collateralized funding for other investment opportunities and putting it all back in the policy... and I think there's some serious risks with that. I think that's more for an accredited or sophisticated investor as defined by the SEC, not the lay person.

This is Caleb Guilliams podcast with Curtis Ray that was just posted yesterday:

 

[Lloyds of Lubbock]

National Life of Vermont grew to a large company on the back of IUL.
Much of it is financed and they were big adcocaters of the "Kaiser" plan.
These illustration were so attractive it was ridiculous.
A client of mine showed one to me and I told him "if I thought this could happen I would buy one.
They were also financing with premiums as low as 50k, while this is a lot of money it is not suitable for financing.

 

[scagnt83]

Life Insurance is how billionaires, and their families, stay rich. Not get rich.

 

[Sheryl J Moore]

National Life of Vermont grew to a large company on the back of IUL.
Much of it is financed and they were big adcocaters of the "Kaiser" plan.
These illustration were so attractive it was ridiculous.
A client of mine showed one to me and I told him "if I thought this could happen I would buy one.
They were also financing with premiums as low as 50k, while this is a lot of money it is not suitable for financing.

Are you referring to "Kaizen?"

 

[Lloyds of Lubbock]

That's the one!

 

[Lloyds of Lubbock]

May be a duplicate response but yes.

 

[Sheryl J Moore]

I think that concept is a specialized type of premium financing, if I recall correctly.

 

[Lloyds of Lubbock]

Specialized in misleading the client into thinking you were getting free insurance.....with distributions!

 

[Sheryl J Moore]

Terrible! We certainly don't need more of THAT in this business! >:(