Whole Life vs. Index Universal Life

[scottstreet]

Salem, why limit "good candidates" to those maxing out IRA & 401K? With future tax rates in flux an likely to go up and the lack of liquidity in qualified plans combined with the inherent volatility of equities markets, I wouldn't advise maxing out these options before adding an alternative vehicle like CV life insurance.

 

[AIBINS]

Re: Whole Life VS Index Universal Life

With American Amicable, their UL spikes after 15 years ... it is only garunteed for 15 years ... if you don't pay more than the target premium, then you rate increases to an insane amount.

With AmAm, your UL earns a hell of a lot more cash value than their whole life -- but i guess their whole life is only FE and that doesn't seem to earn much cash value.

RNA's is going to be similar ... from what I was told ...

Who is the best company for UL?

Thanks,

jody

PEOPLE, STOP! I have never heard some much bickering and bantering! We are NOT helping people with this method. And NO ONE is going to win this arugment because it comes down to what coolaid you are currently drinking and most important, what the client wants!

First off, if you are selling term to someone 60 and older, you should not be in this business! Term is a "young mans" insurance and is designed to cover you in your younger years in case you die and leave a ton of obligation and need to replace your income.

Whole life is the best for someone who wants "permanant" life insurance, with no lapsation and wants to keep cost to a minimum for a lifetime life product.

IUL (Indexed Universal Life) is the best product to sell to someone who has the ability to "over fund" the policy and would like a life time of tax free income in the end. Buth the HAVE to understand this. It is not for everyone but is a fantastic tool for those who can afford it.

It's that simple!

 

[Tahoe Ray]

Re: Whole Life VS Index Universal Life

PEOPLE, STOP! I have never heard some much bickering and bantering! We are NOT helping people with this method. And NO ONE is going to win this arugment because it comes down to what coolaid you are currently drinking and most important, what the client wants!

First off, if you are selling term to someone 60 and older, you should not be in this business! Term is a "young mans" insurance and is designed to cover you in your younger years in case you die and leave a ton of obligation and need to replace your income.

Whole life is the best for someone who wants "permanant" life insurance, with no lapsation and wants to keep cost to a minimum for a lifetime life product.

IUL (Indexed Universal Life) is the best product to sell to someone who has the ability to "over fund" the policy and would like a life time of tax free income in the end. Buth the HAVE to understand this. It is not for everyone but is a fantastic tool for those who can afford it.

It's that simple!

So my 66 year old cardiologist who just got a new contract with his hospital (and plans on working into his 70s) shouldn't have bought 10 year term to protect that income stream? He should have bought more permanent insurance? Come on, how often to blanket statements apply in our business?

Oh, and the "bickering" part of this thread is 4 years old.

 

[AIBINS]

Re: Whole Life VS Index Universal Life

So my 66 year old cardiologist who just got a new contract with his hospital (and plans on working into his 70s) shouldn't have bought 10 year term to protect that income stream? He should have bought more permanent insurance? Come on, how often to blanket statements apply in our business?

Oh, and the "bickering" part of this thread is 4 years old.

No, and You obviously missed the point!

 

[Tahoe Ray]

No, and You obviously missed the point!

I apologize if I misunderstood. In the context of the thread I missed the sarcasm.

 

[AIBINS]

I apologize if I misunderstood. In the context of the thread I missed the sarcasm.

No problem, have a blessed day!

 

[Larry Tew]

Re: Whole Life VS Index Universal Life

PEOPLE, STOP! I have never heard some much bickering and bantering! We are NOT helping people with this method. And NO ONE is going to win this arugment because it comes down to what coolaid you are currently drinking and most important, what the client wants!

First off, if you are selling term to someone 60 and older, you should not be in this business! Term is a "young mans" insurance and is designed to cover you in your younger years in case you die and leave a ton of obligation and need to replace your income.

Whole life is the best for someone who wants "permanant" life insurance, with no lapsation and wants to keep cost to a minimum for a lifetime life product.

IUL (Indexed Universal Life) is the best product to sell to someone who has the ability to "over fund" the policy and would like a life time of tax free income in the end. Buth the HAVE to understand this. It is not for everyone but is a fantastic tool for those who can afford it.

It's that simple!

No, it's not that simple. You sound as if you've never seen a max-funded WL.

One of my gripes with IUL is that it's the last frontier of current products for IMOs and BGAs to hitch their wagon to, so obviously they promote it as the one great go-to product.

I'm sure IUL has a place, but until IUL proves itself over time like WL, I'll remain cautious. I'm still seeing IMOs and insurance companies using 6-8% interest assumptions, which is unsustainable based on the last 10 years of fixed interest returns.

Show me an IUL that factors real market returns from 2000 to 2013 that looks good, and I'll take a 2nd look. That would include a back to back to back loss (2000, 2001, and 2002) and a 38% loss (2008)

This isn't bickering. I just don't agree with your viewpoint.

 

[Tahoe Ray]

Re: Whole Life VS Index Universal Life

No, it's not that simple. You sound as if you've never seen a max-funded WL.

One of my gripes with IUL is that it's the last frontier of current products for IMOs and BGAs to hitch their wagon to, so obviously they promote it as the one great go-to product.

I'm sure IUL has a place, but until IUL proves itself over time like WL, I'll remain cautious. I'm still seeing IMOs and insurance companies using 6-8% interest assumptions, which is unsustainable based on the last 10 years of fixed interest returns.

Show me an IUL that factors real market returns from 2000 to 2013 that looks good, and I'll take a 2nd look. That would include a back to back to back loss (2000, 2001, and 2002) and a 38% loss (2008)

This isn't bickering. I just don't agree with your viewpoint.

The difference between 6 and 8% can be the nearly double the cash after 30 years...

I would love to see your last point. The -38 wouldn't necessarily kill the policy since you'd have a 0 credit that year and then could recover and cap out in subsequent years. A 2000-2002 scenario when the client is in his 70s, hasn't made a premium payment in years and is taking distributions would be very interesting.

 

[AIBINS]

Re: Whole Life VS Index Universal Life

The difference between 6 and 8% can be the nearly double the cash after 30 years...

I would love to see your last point. The -38 wouldn't necessarily kill the policy since you'd have a 0 credit that year and then could recover and cap out in subsequent years. A 2000-2002 scenario when the client is in his 70s, hasn't made a premium payment in years and is taking distributions would be very interesting.

Boy you really don't understand IUL's do you!! If you did know what you were talking about then you would know that our clients lost 0 in the years when the market lost money. They only participated in the up years and on our policy that was capped at 13% they average 6.85% growth from 1999 - 2011. And that is FACT and is verifiable!

Please don't chime in when you really don't know how something works and for the love of our father in heaven, I AM DONE BEATING THIS POOR HORSE!!!!!!

 

[Tahoe Ray]

Re: Whole Life VS Index Universal Life

Boy you really don't understand IUL's do you!! If you did know what you were talking about then you would know that our clients lost 0 in the years when the market lost money. They only participated in the up years and on our policy that was capped at 13% they average 6.85% growth from 1999 - 2011. And that is FACT and is verifiable!

Please don't chime in when you really don't know how something works and for the love of our father in heaven, I AM DONE BEATING THIS POOR HORSE!!!!!!

Why would you quote me on this? I specifically said that the -38 wouldn't matter due to the fact it would have been zeroed out. I am talking about several years of 0-low credits with high cost of insurance, loan interest and w/ds...