Видео

When choosing a plan, it always is going to depend on goals and risk aversion. Let's compare the two quickly though. Permanent with Cash Value Growth vs Term. In the short term Term Life is cheaper and you could invest. However, what happens if the person gets sick or injured and can no longer continue to invest, has to pull the money out of their investments to cover their costs, or they have Term and when it comes time to renew they are uninsurable. Prudent people wouldn't want to take that risk of there is another way. With an IUL a person would have permanent insurance, with living benefits in case something major happens, and the cash value will outgrow their premiums. This means that on a long enough timeline/over the course of someone's life, they could either pay for Term which 99% don't ever pay out (money down the drain) go with permanent insurance, all the benefits that go along with it, and cash value they can borrow against in a pinch. This or something like it should be a PART of someone's wealth growth strategy. The base of it. The protection part of that pyramid. The investments should take place after a strong foundation is already in place.

@@LHWOasis For many people who are low income, mid income. IULs are not suitable because they would need a more flexible and accessible options. Plus the cost of IULs are much higher compared to term life. Also investment component of IULs can be complex and may not always perform as expected, especially with caps on growth and potential fees. It will be best if the person choosing a plan would go to a reputable financial advisor like a CFP and avoid MLM agents.

@ambientgamesound You are very misinformed. To begin with IULs are not an investment. It is protection. Something investments do not offer. The reason IULs are not an investments and this goes for whole life as well is because there is no risk. The Death Benefit and Living Benefits will always be more than the premium put in. Ultimately that is what they should be used for. Given that Term Life does not pay out most of the time and most people still will need life insurance at their end of life when it gets it's most expensive, Term is not a good option. If someone is going to look for protection for their family or even as a means to pass on wealth from one generation to the next lofe insurance is the way the rich have been doing it for years. Depending on the age and health it isn't that costly either, and eventually the policy will stay active perpetually using the cash value which Term will never do. So, if someone wants to see what their best options are to protect themselves and their families long term, they would do best getting the advice of a licensed and experienced broker that can set them up with protection that fits their needs. Thst would be much more prudent than taking advice from a CFA who's expertise isn't in insurance or a CFAs family member.

I see where you’re coming from about IULs offering lifelong coverage and protection, which is definitely a strong point. However, I think it’s important to keep in mind the higher premiums and the complexity of IULs might not be the best fit for everyone, especially if someone is on a tighter budget (no, low-, mid- incomes). Term life insurance can provide the coverage people need at a much lower cost, leaving them with more flexibility to invest elsewhere. My dad is a CFA who looks at whole picture could help make the best decision. IUL is not for everyone.

@@ambientgamesound I am glad you agree because I have never said on this video or on this channel that an IUL is the best for everyone. I don't believe that, and I do not teach anyone that it is. I also do not teach that insurance is an investment because it is not. It is just a part to any sound financial plan because any well thought out plan can be decimated with a serious illness or with the death of a spouse. As far as the complexity goes it is a moot point if the person is primarily using it for what it is meant to be used for Death Benefit, Living Benefits, Volatility Buffer, and/or Emergency Fund. Term life is almost never a good fit for anyone with long term insurance needs because Death is certain, but the market is not, and it is a much more pragmatic to pay for something permanent to allow wealth to pass tax free while avoiding probate. In general these policies allow someone with limited income to have their money check off more boxes at the same time. Again though it is just ONE part of a larger strategy. The advice I give is also not for everyone. It is geared for those who want to make sure they have a strong foundation BEFORE investing. If things hit the fan which does happen at least they have something to fall back on. Hope that helps and gives a little more clarity. I encourage you to watch some of my other videos I briefly cover these things and will go into more detail in future videos.

@@ianvogelmedia Happy to serve!

Thanks! Always looking to simplify things to help people make better decisions for their family.