Thank you, Bruce and Rachel. This is the first place I've seen in three years of being an owner of an IBC policy (just recently got my second one), that someone has coherently explained why base premium dollars pay higher dividends than PUA dollars. It makes perfect sense - you get way more death benefit per dollar of base than per dollar of PUA. I wonder if there are other variables (aside from total amount of death benefit from base vs. PUA) that factor into the life insurance company's dividend calculation -- like, how long you've had your policy? I think I heard someone say that this was a factor but I don't remember where I heard it. Also, as I'm sure you guys are aware, there are other channels (I won't name them) where they claim that skinny base policies accumulate cash value faster than policies with more substantial bases, and even that a policy that is 90% - 100% base premium can MEC. One channel in particular claims to have in-force illustrations from lots of older policies that show this, not just illustrations projecting this in a hypothetical future. I don't think he's lying at all, as he seems incredibly sincere. Also, I've seen on a couple channels the claim that banks and large corporations that buy whole life policies tend to also buy skinny base policies. I'm trying to reconcile these two conflicting points of view for myself. I realize it is a point of contention in the IBC/cash-value banking community. My question is, what sort of training/education would I need to go through in order to study this on my own? Would I only need to be an insurance agent (I'm not even that, currently) or would I need to become an actuary or underwriter or accountant of some kind? Or something else? Thanks again for this great conversation. I've watched a lot of your videos and you guys do fantastic work helping set people's financial lives in order.
Evander, Thank you for watching! I assure you that the test required to be a licensed agent will not help you with this, neither will most of the training from the insurance carriers themselves. Each carrier is different and each product within the same company is different and designed to do different things. The best way to learn is through experience and having a mentor who really knows what they are talking about. We do not use one premium split for all clients. The range of policy design we utilize is rather large and dependent on the individual we are working with. We do not believe there is only one right way. What makes sense for you might not make sense for another. We find it odd that people keep comparing basically only 2 designs. It really depends on the company, the product, and the client. For instance there is one product we use where we will often have the base premium at 50-60%, however the first year cash value available would be in the 70-80%+ range. The main point being that this is not a one size fits all, and premium splits the way discussed by most do not apply equally to all products. Here are some additional videos you may find helpful: 10/90 Premium Split & Blended Paid Up Additions Rider (PUA) Risks: ruclips.net/video/FtpKs0X1SFs/видео.html Life Insurance Agent Commission and Whole Life Policy Design: ruclips.net/video/I4lq1Ltep2s/видео.html 7702 changes 2021: Whole Life Insurance Dividends Update Part 2: ruclips.net/video/ZvRI9r7cEqk/видео.html Family Banking in-force policy review: ruclips.net/video/ghvEU4tXzw8/видео.html Whole Life Insurance Dividends Demystified: ruclips.net/video/AwW0cKHR-sA/видео.html
Great conversation. Rachel and Bruce make a very effective team to communicate IBC principles and attributes. Thank you for taking the time to put this together!
Bruce you were asked about PUA riders, and you say that PUA's have always been around then you articulate 200 years, 175 years . . . I'd like you to post your primary source that PUAs have been around as long as you say. I'd like to see where these riders have been around even prior to the 1960s. This is for a college paper. Thank you.
I just got a quote for my whole life with a paid up addition of $25,000.. My initial Cash Value amount as of year 1 was given $14,000 and break even based on this quote was at year 11.. Not good considering what this channels considers the standard of how to set it up.. My question is.. how can I get a more favorable setup? or are there some specific companies that are just in this space outside the traditional whole life policy that you could recommend?
Thank you for watching and commenting. The definition of "favorable setup" will differ depending on the person. We do not use one premium split for all clients. We do not believe there is only one right way. The range of policy designs we utilize is rather large and dependent on the individual we are working with. It really depends on the company, the product, and the client. For instance there is one product we use where we will often have the base premium as high as 60%, however the first year cash value available would be in the 70-80%+ range. The main point being that this is not a one size fits all, and premium splits the way discussed by most in videos do not apply equally to all products. We cannot provide individual advice in a RUclips comment. If you would like our help in tailoring a solution to your unique situation, you can book a call with our team here: themoneyadvantage.com/calendar
Great job explaining PUA
Thanks
Glad you liked it!! Thanks for watching!
Thank you, Bruce and Rachel. This is the first place I've seen in three years of being an owner of an IBC policy (just recently got my second one), that someone has coherently explained why base premium dollars pay higher dividends than PUA dollars. It makes perfect sense - you get way more death benefit per dollar of base than per dollar of PUA.
I wonder if there are other variables (aside from total amount of death benefit from base vs. PUA) that factor into the life insurance company's dividend calculation -- like, how long you've had your policy? I think I heard someone say that this was a factor but I don't remember where I heard it.
Also, as I'm sure you guys are aware, there are other channels (I won't name them) where they claim that skinny base policies accumulate cash value faster than policies with more substantial bases, and even that a policy that is 90% - 100% base premium can MEC. One channel in particular claims to have in-force illustrations from lots of older policies that show this, not just illustrations projecting this in a hypothetical future. I don't think he's lying at all, as he seems incredibly sincere. Also, I've seen on a couple channels the claim that banks and large corporations that buy whole life policies tend to also buy skinny base policies.
I'm trying to reconcile these two conflicting points of view for myself. I realize it is a point of contention in the IBC/cash-value banking community.
My question is, what sort of training/education would I need to go through in order to study this on my own? Would I only need to be an insurance agent (I'm not even that, currently) or would I need to become an actuary or underwriter or accountant of some kind? Or something else?
Thanks again for this great conversation. I've watched a lot of your videos and you guys do fantastic work helping set people's financial lives in order.
Evander, Thank you for watching!
I assure you that the test required to be a licensed agent will not help you with this, neither will most of the training from the insurance carriers themselves. Each carrier is different and each product within the same company is different and designed to do different things.
The best way to learn is through experience and having a mentor who really knows what they are talking about.
We do not use one premium split for all clients. The range of policy design we utilize is rather large and dependent on the individual we are working with. We do not believe there is only one right way. What makes sense for you might not make sense for another. We find it odd that people keep comparing basically only 2 designs.
It really depends on the company, the product, and the client. For instance there is one product we use where we will often have the base premium at 50-60%, however the first year cash value available would be in the 70-80%+ range. The main point being that this is not a one size fits all, and premium splits the way discussed by most do not apply equally to all products.
Here are some additional videos you may find helpful:
10/90 Premium Split & Blended Paid Up Additions Rider (PUA) Risks: ruclips.net/video/FtpKs0X1SFs/видео.html
Life Insurance Agent Commission and Whole Life Policy Design: ruclips.net/video/I4lq1Ltep2s/видео.html
7702 changes 2021: Whole Life Insurance Dividends Update Part 2: ruclips.net/video/ZvRI9r7cEqk/видео.html
Family Banking in-force policy review: ruclips.net/video/ghvEU4tXzw8/видео.html
Whole Life Insurance Dividends Demystified: ruclips.net/video/AwW0cKHR-sA/видео.html
Great conversation. Rachel and Bruce make a very effective team to communicate IBC principles and attributes.
Thank you for taking the time to put this together!
Glad you enjoyed it! Our Pleasure!
I am a newly licensed insurance agent, How can I get the training to learn how to properly design a product for IBC?
How can I pay my policy off in 10 or 20yrs?
Bruce you were asked about PUA riders, and you say that PUA's have always been around then you articulate 200 years, 175 years . . . I'd like you to post your primary source that PUAs have been around as long as you say. I'd like to see where these riders have been around even prior to the 1960s. This is for a college paper. Thank you.
Thanks for watching! What timestamp in the video are you referring to?
I just got a quote for my whole life with a paid up addition of $25,000..
My initial Cash Value amount as of year 1 was given $14,000
and break even based on this quote was at year 11..
Not good considering what this channels considers the standard of how to set it up..
My question is.. how can I get a more favorable setup? or are there some specific companies that are just in this space outside the traditional whole life policy that you could recommend?
Thank you for watching and commenting.
The definition of "favorable setup" will differ depending on the person. We do not use one premium split for all clients. We do not believe there is only one right way.
The range of policy designs we utilize is rather large and dependent on the individual we are working with.
It really depends on the company, the product, and the client.
For instance there is one product we use where we will often have the base premium as high as 60%, however the first year cash value available would be in the 70-80%+ range.
The main point being that this is not a one size fits all, and premium splits the way discussed by most in videos do not apply equally to all products.
We cannot provide individual advice in a RUclips comment. If you would like our help in tailoring a solution to your unique situation, you can book a call with our team here: themoneyadvantage.com/calendar
@@TheMoneyAdvantage sounds good and I’ll book with your team
We look forward to serving you!