Indexed Universal Life Insurance - Tax Free Income Using Policy Loans

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  • Опубликовано: 29 окт 2024

Комментарии • 44

  • @CashValueLifeInsuranceReviews
    @CashValueLifeInsuranceReviews  5 лет назад

    To apply for a policy review, visit:
    leveragedwm.com/iul-review

  • @Smalex1991
    @Smalex1991 4 года назад +8

    This is probably one of the most important aspects to understand .. thank you

  • @jcmuhammad3999
    @jcmuhammad3999 4 года назад

    One of the best methods of explaining policy loans that I have ever come across. Kudos.

  • @ashleytaylor994
    @ashleytaylor994 4 года назад +1

    Best explanation on RUclips. Not kidding. You have a gift

  • @aks777777
    @aks777777 4 года назад +2

    Thanks for the video Matt. interesting and helpful.

  • @kelvinprince427
    @kelvinprince427 8 месяцев назад

    I came across your video. Great information. Using your $500k loan example. What is the benefit to start paying back the $500k loan. If loan was taked to say buy a home, should the loan be paid back? At what point once a loan is taken can the owner start paying back the loan?

  • @ugochukwue2925
    @ugochukwue2925 Год назад

    Can you get a loan from the policy value without having a cash surrender value?

  • @mikehinh
    @mikehinh 3 года назад +1

    This was a great explanation! Thank you

  • @mlwebb79
    @mlwebb79 5 лет назад +5

    In the case of a business owner, can the "individual" get an IUL and the business actually funds the IUL and pays the premiums?

  • @matthewjponder
    @matthewjponder 7 месяцев назад

    Great explanation

  • @DerrickWallner
    @DerrickWallner Год назад

    I finally get it. :) Thanks!

  • @ericsomodio2926
    @ericsomodio2926 5 лет назад +3

    Great video! Up to what point can someone withdraw from their policy be considered tax-free? I know that there is a difference between withdrawals and policy loans, but is it true that it remains tax-free as long as it does not exceed your premium basis; once you exceed that amount then it becomes ordinary taxable income?

    • @CashValueLifeInsuranceReviews
      @CashValueLifeInsuranceReviews  5 лет назад +5

      that would not be true. Only taxable if you are withdrawing funds above basis. You should be using a loan of some form to keep it tax free.

  • @ryanlevine5503
    @ryanlevine5503 4 года назад

    So how does a regular wash-loan work? Does the money in the index account not earn interest anymore? If so how and when are they able to earn interest again?

  • @aks777777
    @aks777777 4 года назад

    please make a video on what happens when you stop the policy after 20y. do I get cash value out? is it taxfree?

  • @mattmill7130
    @mattmill7130 4 года назад

    So when you take a loan, they charge 5% on the loan? So in your example you took a loan of $500,000, so would they charge you $25,000?
    Also, what if the index is negative and your policy account earns a 0% then that would mean you lost money right?

  • @3056bigman
    @3056bigman 2 года назад

    Ok at @5:54 , you never mentioned about the 12% compound interest that is in affect when leaving the $500,000 in the IUL. So with the compound interest wouldn’t it be as if I never took out $500,000?

    • @gavink3192
      @gavink3192 2 года назад

      Hi Giovanni. Matt can correct me if I’m wrong but once you take that 500k out you will need to pay it back eventually or just subtract it from the death benefit if you don’t pay it back when you are alive. You may be thinking about the interest you don’t have to pay back. Example: take a loan for 500k and earns 7% and loan rate is 5% you have a net of 10k you made from spread. What he didn’t really talk about was what your policy would look like. You would have 1.07M earning interest and a loan balance of 525k AND the max you can loan out the following year would be 1.07M minus 525k. You wouldn’t want to loan out more than your cash value because then the policy would lapse. I know he made it sound like you can keep on taking loans out for 500k every year but it wouldn’t work like that because you can’t loan more than your cash value. Hope this helps

  • @traefauntleroy2093
    @traefauntleroy2093 3 года назад +1

    Awesome Video.

  • @robmartin217
    @robmartin217 3 года назад +1

    The public needs separate fact from fiction..ie...celebrity...TV hawkers...gurus..pundits....to appreciate the potential, structure of IUL....

  • @bebeesuebsaila988
    @bebeesuebsaila988 4 года назад

    Thank you so much. That’s pretty crystal clear explanation.
    I have a question.
    When talking about loan amount.
    Can a client loan from the accumulation amount or from the death benefit amount?

    • @CashValueLifeInsuranceReviews
      @CashValueLifeInsuranceReviews  4 года назад

      You can take a loan out on the Cash Value of the policy. in regards to paying it back, there are more options.

  • @robmartin217
    @robmartin217 3 года назад

    Great explanation....

  • @otakunbox4150
    @otakunbox4150 2 года назад

    Not sure if you are going to respond.
    But lets say i have a 500k IUL.
    I took a loan out for 50k. It becomes a lien from my life insurance policy....
    Does that mean they make monthly payments through my life insurance policy? Or do they charge me directly? Or do they increase my life insurance mothly premium?
    Trying to find out where the cost is going to.
    Im still a bit young but im interested in this powerful tool.

    • @CashValueLifeInsuranceReviews
      @CashValueLifeInsuranceReviews  2 года назад

      Thanks for watching! Feel free to book some time with us to fully go through your questions: leveragedwm.com/contact-ii/

  • @artkesh7452
    @artkesh7452 4 года назад

    So that $1,000,000 in my policy account (2nd square)is my cash value right?

  • @biga3586
    @biga3586 4 года назад +1

    I swear I can’t believe this I’m still able too get a loan from the policy but I get interest instead of getting a traditional loan from a bank

  • @SantiagoLopezgalicia
    @SantiagoLopezgalicia 4 года назад

    Hello Matt. I have a question. So in your illustration you got someone bowering 500k against their 1m policy, so who sets the length of the repay? If you don’t pay it back how long they keep charging you interest?

    • @CashValueLifeInsuranceReviews
      @CashValueLifeInsuranceReviews  4 года назад +2

      Your policy is kept as collateral and there are no set repayment terms.

    • @pepplesjohnson
      @pepplesjohnson 3 года назад +1

      So if you die before paying off the loan, the company will subtract the balance from the death benefit?

  • @remixsongify
    @remixsongify 5 лет назад

    I’m an agent and when I run my policies (IUL or VUL) with distributions it’s a washed loan. However, on my policies the net cash surrender value and the policy account value change the same. Why is the net cash surrender value and the policy account value stay the same?

    • @CashValueLifeInsuranceReviews
      @CashValueLifeInsuranceReviews  5 лет назад

      Sorry, I don't understand the question.

    • @remixsongify
      @remixsongify 5 лет назад

      Is there a difference between a fixed wash loan and a participating loan? For example, with the illustrations you show, when taking distributions the account value is different than the net cash surrender value.

    • @remixsongify
      @remixsongify 5 лет назад

      When I do illustrations with my policies with distributions, the net cash surrender value and policy account value stay the same.

    • @CashValueLifeInsuranceReviews
      @CashValueLifeInsuranceReviews  5 лет назад

      @@remixsongify then you are using withdrawals or non participating loans

    • @CashValueLifeInsuranceReviews
      @CashValueLifeInsuranceReviews  5 лет назад

      @@remixsongify yes of course there is a difference

  • @glennlewman4186
    @glennlewman4186 Год назад

    You are borrowing your own money, pay interest and have it subtracted from your death benefit. Taxes are the least of your worries

  • @artkesh7452
    @artkesh7452 4 года назад +1

    I love your videos!!

  • @artkesh7452
    @artkesh7452 5 лет назад

    That million Dollars you’re talking about is cash value or the death benefit?
    If it’s death benefit, you can borrow against your death benefit or you can borrow against your cash value?

    • @CashValueLifeInsuranceReviews
      @CashValueLifeInsuranceReviews  5 лет назад +4

      You are borrowing from the insurance company, not your policy. They in turn place a lien on your policy. If you die it comes out of your DB. If you surrender the contract it comes out of cash.

    • @willwheat3
      @willwheat3 2 года назад

      @@CashValueLifeInsuranceReviews Do your Index Universal life insurance need to have a cash value before you can borrow. For example, I have a two million dollar policy and I want to borrow 500,000 from the insurance company using my policy as collateral.