We all know IULs are a ripoff

[phoenixlord]

Caps are changed, expenses are changed, participation rates are changed.
Admin fees, premium load, other fees, misc fees and wtf fees

Real reason the stock market averages 8% over a 30 year period is even if it lies dormant for a decade, when it surges 400%, you get to keep all 400% and not cap it at 9.5%.

For people who say "but what about when it crashes?" If you see 400% in your 401k and still don't cash it, then you only have yourself to blame for your greed.

How long can you kid yourself that "if designed right" IULs are good? Deep down, we agents know that even if the cash value is the same as the death benefit (forget MEC bull cr*p), insurance companies have ways to bleed the policy and take all your clients money. Question is, when will you take a stand and stop recommending IULs to your clients?

 

[Tahoe Ray]

Caps are changed, expenses are changed, participation rates are changed.
Admin fees, premium load, other fees, misc fees and wtf fees

Real reason the stock market averages 8% over a 30 year period is even if it lies dormant for a decade, when it surges 400%, you get to keep all 400% and not cap it at 9.5%.

For people who say "but what about when it crashes?" If you see 400% in your 401k and still don't cash it, then you only have yourself to blame for your greed.

How long can you kid yourself that "if designed right" IULs are good? Deep down, we agents know that even if the cash value is the same as the death benefit (forget MEC bull cr*p), insurance companies have ways to bleed the policy and take all your clients money. Question is, when will you take a stand and stop recommending IULs to your clients?

If you compare an IUL to the stock market, you're gonna have a bad time.

Compare them to bonds, not to stocks and you'll see historical IRRs are very reasonable.

These companies invest your money in bonds and options...in what world should that performance even come close to an S&P 500 ETF or the like.

It's the "either/or" vs. the "and" mentality that makes it easy to poke holes in IUL. If it's part of a diversified portfolio of assets, they're fine.

As a replacement for equities, not so much.

 

[phoenixlord]

If you compare an IUL to the stock market, you're gonna have a bad time.

Compare them to bonds, not to stocks and you'll see historical IRRs are very reasonable.

These companies invest your money in bonds and options...in what world should that performance even come close to an S&P 500 ETF or the like.

It's the "either/or" vs. the "and" mentality that makes it easy to poke holes in IUL. If it's part of a diversified portfolio of assets, they're fine.

As a replacement for equities, not so much.

and off we go

Not comparing to anything. Just saying IULs are designed to do only one thing which is take your client's money. You will see this 20 years from now, IULs alongside the 80s products.

 

[Markthebroker]

If you compare an IUL to the stock market, you're gonna have a bad time.

 

[Tahoe Ray]

and off we go

Not comparing to anything. Just saying IULs are designed to do only one thing which is take your client's money. You will see this 20 years from now, IULs alongside the 80s products.

Reread your post. Not looking to argue. You have an opinion, as do I.

IULs have already been around for almost 20 years.

I am not a huge fan of IUL, but it has a place.

 

[phoenixlord]

IULs have already been around for almost 20 years.

We didn't talk about 80s products like this in 80s

Yes, buying lottery, going to casino has a place in some people's finances too.

 

[Tahoe Ray]

We didn't talk about 80s products like this in 80s

Yeah. We talked about them in the 2000s...20 years later.

 

[phoenixlord]

Yeah. We talked about them in the 2000s...20 years later.

This talk about the IULs has already started. Agents like you are just not realizing that.

 

[Tahoe Ray]

This talk about the IULs has already started. Agents like you are just not realizing that.

Lol...I'm one of the biggest critics of IUL on this forum.

I'm not sure what your angle is but good luck to whatever you're trying to accomplish.

 

[phoenixlord]

Lol...I'm one of the biggest critics of IUL on this forum.

I'm not sure what your angle is but good luck to whatever you're trying to accomplish.

I have read many posts here about "if designed correctly" and just wanted post something here that even if you design CV = DB which is the ultimate efficient design since there is no COI, they will still get you with the admin fee, other fee, misc fee and wtf fee. AND S&P returning the max cap once in every few years is not enough to negate the costs which are every year. AND if some agent designs it to maximize his commissions with a huge DB, then God help that client. That's all I am sayin.