Which is a Better Option? Buy IUL or Buy Term+annuity?

[csinsurance]

If a client, such as 40 old without mortgage and children (no many liabilities and no need for a big protection), which is a better option?

Buy an IUL or buy a term and then invest the rest of the money into an annuity?

 

[DaKine]

If a client, such as 40 old without mortgage and children (no many liabilities and no need for a big protection), which is a better option? Buy an IUL or buy a term and then invest the rest of the money into an annuity?

You can structure them to be the same. So it becomes an exercise in analyzing benefits and costs each product/company provides and the customers ability to qualify.

 

[rousemark]

You can structure them to be the same. So it becomes an exercise in analyzing benefits and costs each product/company provides and the customers ability to qualify.

You can use policy loans against the cash value of the IUL to create a tax deferred income stream and possibly even tax free if the policy does not lapse prior to the insured's death.

 

[DHK]

http://www.insurance-forums.net/for...fe-forum/buy-iul-buy-term-annuity-t70469.html

I think he should keep better track of the posts/threads he starts before giving advice to others.

 

[Golfnut2112]

Do they have a Roth IRA? Why would you recommend life insurance if they don't need it?

 

[DaKine]

Do they have a Roth IRA? Why would you recommend life insurance if they don't need it?

The question did not mention a Roth.

 

[FEsalesNC]

Who is the resident authority on IUL's here on the forums?

 

[DHK]

scagnt83 and BNTRS are the two that I think of for IUL.

 

[Golfnut2112]

The question did not mention a Roth.

Why not?? He said they have no need for life insurance, so to even think about a life insurance recommendation is crazy.

 

[DaKine]

Why not?? He said they have no need for life insurance, so to even think about a life insurance recommendation is crazy.

The original question mentions term. This indicates there must be a need. There may be better options than term but that depends upon why the insurance is needed.

On the other hand an IUL can be a fantastic alternative for those that don't qualify to fund a Roth IRA or those that want to save additional funds.