What is the Catch Here?

Discussion in 'Life Insurance Forum' started by MartinJ, Sep 2, 2017.

  1. MartinJ
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    MartinJ New Member

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    I know that an 9.94% annual ROI is impossible with whole life insurance. So what is the catch here? Is this 9.94% before all of the fees? I can't post links but it's this bankonyourself dot com site.
     
  2. pfg1
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    pfg1 Guru

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    Are you an agent or a client? Do you understand how max funded perm life works, in particular how WL works - and how the "banking" concept works? Yes, 9.94% is not what you actually earn, but its a broken down equivalent you would have to earn in another investment when you factor into taxes, fees, etc.

    A properly structured max funded policy can definitely earn over 5% internal rate of return, sometimes close to 6%. It can be a great thing for the right people... and there are many benefits of using this type of planning as a part of a whole financial plan.
     
  3. jboussea
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    jboussea Guru

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    BOY tend to embellish things and tends to be quite salesy .. so I would continue to post questions here if you are skeptic about what they preach. There are a few agents here who know WL pretty well ...
     
  4. LGilmore
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    LGilmore Guru

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    What fees are you talking about?
     
  5. eersfan
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    eersfan Expert

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    And an even higher ROI can be achieved with a variable contract, over time, especially if the agent is able to get institutional-priced COI, which the majority cannot.
     
  6. pfg1
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    pfg1 Guru

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    The op was asking about BOY and WL. Variable is totally different game, and imo not even close to being suited for BOY type planning.
     
  7. eersfan
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    eersfan Expert

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    This is an integral part of my practice coupled with deferred comp planning.
     
  8. DHK
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    DHK Guru

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    That may be true, but you aren't doing BOY with VUL, right? Completely inappropriate use of VUL. The concept of "banking" is best done with over-funded whole life and IUL policies, not variable policies.

    I agree that the best place for VUL is for deferred compensation plans... but this is on TOP of other life insurance and 401(k) deferrals for executive planning and/or executive compensation plans.
     
  9. eersfan
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    eersfan Expert

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    I don't ever talk about BOY since the individual market is not a priority in my practice. I prefer working the corporate market where 6-figure premium checks are the norm.
     
  10. jboussea
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    jboussea Guru

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    but the thread is about BOY and the individual market
     
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