This strategy isn't right for everyone and you must make sure you are working with someone who knows these products inside and out! If properly structured an IUL can be one of the best things you own. If it's done wrong it can be a source of frustration and pain. Make sure you do it right!
Do they have an IUL course? If so I am interested in taking the IUL course. In my view, they mostly train their agents on how to sell, recruit, and get a commission instead of training them on how to structure properly and their policy.
The underlying cost of the insurance goes up every year, and there’s no predictability with the product cost. It never matches the original illustration. It’s absolutely absurd you would reccoment this over whole life.
Matt i have watched 7 of your videos and by far and away you are offering the best content on utube related to this subject. i am 66 and decided to get back into building my insurance broker career . You are considerably reducing my learning curve and convinced me that designing these plans properly is the only way to go. Thank you very much for your training . Steve
I got an IUL for my 16 year old, My 4 year old daughter, My husband is term (can't afford because he's getting older, and iul for me. If I have the money, I would love to get more. Great thing is, buy early when you are young and have a newborn baby.
outstanding!! thanks for this training, although you mention that its a strategy for high earners, there are many carriers that have tweeked their policies to make this investment available to the middle class!! so ALL those people making under 100 K with IRA's NEED this!!!
Awesome video. I'm just wondering why you don't recommend for lower middle class? I'm new to being a life Insurance Agent and people I am mostly in contact with make between 30k and 80k. So this strategy seems to perform well so why is it your advice against them getting it? I'm just curious to learn.
The workaround for income limit for Roth IRA -- Backdoor Conversion to Roth IRA. Max contribution for IRA: $6K Max contribution for 401k: $19K + matching/profit sharing/Mega backdoor up to $56K. For 50 years old individuals, there is the catch ups: $1K (for IRA) and $6K (for 401k). If 401k does not provide Roth, one always can rollover to IRA and then convert to Roth IRA. So for high income individuals, with the right 401k plans, they can put up to $6K + $56K = $62K (or $69K for 50 years old). Those who has business, may open solo-401k and SEP and put even more money. If a family contributes around $50K each for 10 years, they will have $1M in contributions and conversions, which could be withdrawal (with 5 years delay) tax and penalty free.
I wonder what a comparison of each of those plans would look like if you used actual market returns. In other words re-create history and see which plan “wins”
would depend on which years I used. I could cherry pick. Would depend on when retirement occurred in relation to 2000-2002 and 2008. Its impossible to know what the first 10 years of retirement will look like from a market standpoint. Using real returns misses the whole point. It's all about timing and sequence of returns. I'm not in favor of this strategy completely replacing all market linked accounts. You need a variety of options.
@@CashValueLifeInsuranceReviews I decided to build a model to compare. Here is a summary of my results. An IUL does not compare until you have a fairly conservative portfolio. www.reddit.com/r/personalfinance/comments/dvsj6r/which_retirement_machine_yielded_the_most/
@@zolly84606 Nice job. It's fair to say that people's situations are unique. From the numbers I've ran if you can't stand a lot of market exposure for 20 or more years then iul becomes attractive. Wait too long and you may not qualify for it anyway.
Great presentation and explanations on cash value life insurance. My biggest concern is how somebody can lose on them. Outside of not paying your premiums, what are some of the ways, real or myth, that people can lose or think they can lose their investment or the illustrations presented don't turn out as explained (or not explained in some agents' case)? Can you discuss or make a video on some options for people who may have gotten a badly structured policy. Are there options to get out of it or trade it in for a better structured policy either with the same company or a different one without penalties or losing their investment? Thanks for taking the time to make and share these videos. I'm a new agent (a second career) and your channel does a great job of explaining the different products. Feel free to direct me specifically to other videos for your answers. I haven't watched, and re-watched, them all but am slowly working my way through the list. Thank you again.
Thanks for another organized, informative video. I'd love to see you tackle just why the cost of term insurance shouldn't be a worry in the later years (80s / 90s). I own a properly structured IUL but with all the warnings and doomsayers out there, now I'm nervous. I'm about 5 yrs in of overfunding (but not maximum funding) and in upcoming yrs may switch to basic premium payment. Is my policy still protected from blowing up in a few decades? What if there is little upside in the index over that time? I look forward to your take on this subject. Keep up the great work! It's such important info.
Newly learning insurance here. Why does a person want a lower rate of return when retired? I heard something about risk, not really understanding. I was just thinking if an IUL has a 0%-.25% floor then why would you want a smaller rate of return rather than a bigger one?
guaranteed floor? I'd say no, not the ones designed for cash accumulation. That adds too much expense to the policy. They do have decent fixed accounts through. 4-5%
@@rustysmith8963 you can get a floor, of course. But will it cover expenses? I'd guess no. Either way, mathematically, a floor isn't worth it. Only comes into play 20% of the time, and the trade-off is usually lower caps or higher fees. Some will do floors of 2.5% but only credit the guarantee every 8 years....so not a true floor. Penn can build in a floor, but not enough to cover fees.
You don't want a floor...it will take away from your upside. Just use the fixed account, not bad at 4+%. But in down years when the fixed account would benefit, that is the time to reallocate to index strategies to catch the "pop" or recovery in the market...like right now....down 15 %. Good time to start.
How does the surrender values work with IUL? Is there a specific reason to to be able to surrender the policy? And would there be a tax penalty when surrendering?
No tax penalties, and you don't need a specific reason. You always have access to your cash surrender value, but that is different than your accumulation value. Keep in mind surrender charges.
@@CashValueLifeInsuranceReviews i own an IUL Policy but yess the surrender charges are very High!! 😒 im pretty sure my policy was designed the wroNg way.. i waNt to caNcel but then i get confused again... caN u help me with that???
How does these policy earn 6% if they are not investing my money in the bonds/equity? what happens if inflation goes high, would 6% increase with the inflation? Out of my monthly 3000 how much is going towards life insurance and how much is actually going towards my equity? Also, basic point of tax deferred account is you will be in lower tax bracket because your income will be low when you are 70+. Amount in each tax bracket will keep increasing every year as per inflation.
@@CashValueLifeInsuranceReviews if one is in 24% federal tax bracket in their late thirties, when they retire say at 65/67, before RMDs start, social security would be the only sure income other than salary. you also get a sweet spot of 5 years, 65-70 where you can convert traditional to ROTH IRA. if in today's dollar you are in 24% bracket, if salary and brackets increase same as inflation you will be in same bracket when you retire. if no salary income, you will be sure in the lower bracket. at greater than 72, most people will not have salary income.
So the agent shouldn’t make a commission? Why would they sell the IUL? If no one sells IUL’s then how can you buy one? The agent’s commission is based on a percentage of the first year’s premiums. If the premiums are higher, the commission will be higher, the cash value will accumulate more quickly, the death benefit will be higher, and your money in retirement will be higher. If the premium is lower, then it will be the exact opposite. There is no other way to structure it. When you smear agents as dishonest and greedy, you erode confidence in the insurance industry as a whole.
Christopher, its comical to me that you are proving one of my main points about this industry. I would say that most agents are undereducated on the products that they are selling. This comment shows that you don't really know what you are talking about.
@@CashValueLifeInsuranceReviews you’re a typical salesman doing the old “don’t trust other salesman, only trust me” act. It’s boring, it’s old, and it’s tired. Time to come up with a new schtick.
Not really important but HSA’s were not included in tax-free bucket. “Tax Free” is sort of a misrepresentation. You pay the taxes on contributions, the only “tax free” portion is the growth. You have to consider that you are putting less money into the “tax free” money because you are paying the taxes now(typically average 30%). Where tax deferred will be a bigger “bucket” because you don’t pay taxes before you go in. Example: Roth & CVLI You have $1,000 you pay 30% in taxes $300 and put $700 into your Roth or CVLI 401(k) and IRA You have $1,000 if you would pay 30% that would have been $300 but since it’s tax deferred you don’t pay the taxes so $1,000 goes into the account. In the the Roth $700 is invested. In a traditional $1,000 is invested. So if you are a high income earner you will be paying more in taxes now so it would be better to defer the taxes and invest in your 401(k).
@@CashValueLifeInsuranceReviews i try to tell my sister to stop fund her 401k ira roth ira and to fund new IUL with living benefits ==our VUL is growing cash value - i think i should change my VUL to IUL
@@CashValueLifeInsuranceReviews typically yes your tax bracket is lower because of your social security is not typically taxed because of the step bracket taxing. If you are insinuating that you think tax rates will be higher it’s tough to say. Plus I would argue that Social security brackets have not been adjusted for inflation since the 90’s so it is entirely possible they could go up. Also, you have to consider the fees on the IUL or VUL. Plus with interest rates at all time lows IUL caps are so low that once fees are taken into consideration you would need to max the cap to make 2.0% or less which wouldn’t even keep up with inflation. Can you make a video breaking down fees? That would extremely transparent of you.
If someone already has a plan like this for more than a few years but not structured properly can they make changes to the existing policy or do they need to get another policy?
How can a policy guarantee 6.64% return in the current interest rate environment. Guaranteed returns can only come from the fixed portion of the policy.
You will pay taxes on the withdrawal, but if you are over 59 1/2, you will not pay penalties for early withdrawal. You will want to discuss the impact of taxes & funding strategy with a professional - if you don't have one, we'd be happy to chat - book time with our team: www.leveragedwm.com/bookmeeting
You need to do an individual-based assessment of the client; meaning are they looking for protection/death benefits: then you give them that without lapsing the policy-it is imperative to show the client how their cash value will perform in the policy (the illustration will show you), 2nd is the IUL for cash accumulation for tax free retirement then you give them that and keep the death benefit as displayed, also emphasize on the yearly MEC if they have a lumpsum to invest into their policy which will skyrocket their cash accumulation, 3rd is the IUL for college funding, do they want to stop paying at retirement age ect... Personal assessment of the client is imperative. I do what's best for my clients, and I do it with my heart, I am not concerned about getting a high commission because I want to help my client and I would want the same to be done for me. I always get blessed from above for being honest.
@@abespalko I do the exact same thing with several years in the industry. I specialize in IUL. Would be glad to assist you if you didn’t hear back from them.
Hey man don’t mean any disrespect, but what’s your IUL AP for 2019. I like what you’re saying and doing but this is very complicated. Is this how you make a living selling it or is it different in front of a client?
I can sit here and bust this illustration on the non-guaranteed nature which is also state in the illustration which you conveniently forgot to mention on top of the fees that you also forgot to mention. Why limit to 0.25%? There are funds that have 0 expense now.
At 10 basis points you run out of money at age 95. the life policy still has 169k in cash. This of course assumes that you manage to earn 8% every year and avoid market losses altogether.
So this channel is only for high earners? The training is great but for those agents that deal with lower earners (for now) it would be nice to see some lower earners scenario. Thanks for the videos
These plans work perfectly if the person dies in his or her 70s. If this person lives in his/her 80s the cost for the insurance will suck this policy dry. After listening to this video I see you are 95% life insurance salesman. The 5% is probably helping clients grow their wealth. The reason high earners buy CVLI is because they were SOLD by a slick salesperson. Most rich people in their 60s, 70s, 80s, etc. care less about risk as you put it. I know many rich people who have 80% plus of their portfolio exposed to the stock market. They have enough passive income coming in to pay the bills, etc.
Raj Beekie you are right about poorly designed products not working well in later years. In fact, this is a topic I discuss ad nauseum. When properly designed as a minimum commissioned sale these problems don't manifest. And no...I am not 95% life insurance...This channel is 95% life insurance, that's the idea... It's in the name. Thanks for the comment!
if i may add, two types of life insurance agents exist - 1 ones that are property casualty people who sell it to cover risk or banking agents that just use it to cover the risk. 2 professional career agents that look to help the client with risk and finance. the number 2 person actually has to diagnose the client and understand and get a lot of information to advise. option 1 people just quote and usually just want to make a sale and they only understand permanent policies have larger commissions so not many career guys exist anymore because its a long term solution and a long term business model. very few want to wait for 10-15 yrs to create a strong business model or plan
my 31 yrs has proven otherwise! my point permanent cv life insurance "if sold and coached correctly" pays "the day" if a death occurs. it now allows for option 2 (yes I know a cost exist for it). index allows for a better chance of returns (if funded correctly and client understands the principles). living benefits are amazing, ask any client that's received them. flexibility, maybe on the target end when starting but a well trained agent works every yr to explain to client that he should indeed increase to keep up with at least inflation. a true relationship exist to combine the family, CPA, 401K, and attorney. to name a few! I do not know of many who go this far in depth, hell most financial guys just want a fee based deal to be worth "x" amount of dollars so they can feed off 1% ( that adds up to be a lot). old fat hog life insurance policys and renewals are mostly gone. life insurance along with that taxation understanding goes a long ways to be a "part" of ones overall planning! nobody wants to discuss life insurance and that's why its the most difficult field vs selling rollovers and ignoring the whole qualified discussions ( I personally know 4 guys that just do investments that never want to discuss life insurance because they say that's way to much work to get into all that stuff! true that!
my mom has one such policy, she is 65. Almost 30% of her premium goes towards life insurance(that is 33% tax bracket right there). this increases as she grows old. 2-4% goes towards fees every year(just like expense ratios). you are stuck for the policy term. if you want to break the policy in between, there is surrender value almost same as total premiums paid. This is useless for most people in my view. no need to mix life insurance and investment. you don't need life insurance if you have no liabilities. house paid, all children settled in their life, social security, decent savings and that's it. I would rather pay for my children's education compare to leaving them life insurance money. if one is young(20-50) and has liabilities, get a cheap term insurance.
my sister bought a 500K VUL on my mother policy = still paying 70 yrs old VUL cash value still grow we can't change her VUL to IUL she's 70 yrs old= by 5-10 yrs her VUL grows more cash value and me and my sister will have some income.
I think people need life insurance and investments= my parents and sister know to invest in stocks = if no liabilities i still will buy life insurance = you need more than 1 type of investments to fund your house - heard you can buy life insurance that have cash value to fund your children's education.
What are you talking about...disparaging agents? I would be very happy with commission generated with $36,000 annual premiums....that is properly structured....so, I really don’t know why you are painting the agent pool as so greedy and incompetent.
@@CashValueLifeInsuranceReviews it’s a real product, it’s his spin in IULs. Whether it’s good or not I’m not sure. Ben researching it for the last 4 months, wanted to know your take on it. Another one is Doug Andrews Laser fund (another take on IUL).
This strategy isn't right for everyone and you must make sure you are working with someone who knows these products inside and out! If properly structured an IUL can be one of the best things you own. If it's done wrong it can be a source of frustration and pain. Make sure you do it right!
It's a Roth on Steroids. Love this !!!
Do they have an IUL course? If so I am interested in taking the IUL course. In my view, they mostly train their agents on how to sell, recruit, and get a commission instead of training them on how to structure properly and their policy.
can you pls show illustration which also show collage saving?
SangTin Lian send me yr email?
The underlying cost of the insurance goes up every year, and there’s no predictability with the product cost. It never matches the original illustration.
It’s absolutely absurd you would reccoment this over whole life.
Matt i have watched 7 of your videos and by far and away you are offering the best content on utube related to this subject. i am 66 and decided to get back into building my insurance broker career . You are considerably reducing my learning curve and convinced me that designing these plans properly is the only way to go. Thank you very much for your training . Steve
i ve been using these strategies for 25 yrs. i ve never heard anyone explain it like me - wow!
I got an IUL for my 16 year old, My 4 year old daughter, My husband is term (can't afford because he's getting older, and iul for me.
If I have the money, I would love to get more. Great thing is, buy early when you are young and have a newborn baby.
Thanks for watching!
U r a gifted teacher! Enjoying the playlists! 🤓👍
outstanding!! thanks for this training, although you mention that its a strategy for high earners, there are many carriers that have tweeked their policies to make this investment available to the middle class!! so ALL those people making under 100 K with IRA's NEED this!!!
Maybe...you also have to balance early liquidity needs.
@@CashValueLifeInsuranceReviews what do you mean by that statement?
@@richcascio If you need early liquidity, the IUL may not be the best fit. These contracts are typically geared for longer timelines.
THANK YOU! HEARD THIS ON ANOTHER VIDEO, BUT YOU REALLY WENT IN DEPTH AND EXPLAINED IT SO WELL.
Awesome video. I'm just wondering why you don't recommend for lower middle class? I'm new to being a life Insurance Agent and people I am mostly in contact with make between 30k and 80k. So this strategy seems to perform well so why is it your advice against them getting it? I'm just curious to learn.
The workaround for income limit for Roth IRA -- Backdoor Conversion to Roth IRA.
Max contribution for IRA: $6K
Max contribution for 401k: $19K + matching/profit sharing/Mega backdoor up to $56K.
For 50 years old individuals, there is the catch ups: $1K (for IRA) and $6K (for 401k).
If 401k does not provide Roth, one always can rollover to IRA and then convert to Roth IRA.
So for high income individuals, with the right 401k plans, they can put up to $6K + $56K = $62K (or $69K for 50 years old).
Those who has business, may open solo-401k and SEP and put even more money.
If a family contributes around $50K each for 10 years, they will have $1M in contributions and conversions, which could be withdrawal (with 5 years delay) tax and penalty free.
Min 25:15 want to hear the reasons! How come the money ran out?! And how did your IUL not run out??
I wonder what a comparison of each of those plans would look like if you used actual market returns. In other words re-create history and see which plan “wins”
would depend on which years I used. I could cherry pick. Would depend on when retirement occurred in relation to 2000-2002 and 2008. Its impossible to know what the first 10 years of retirement will look like from a market standpoint. Using real returns misses the whole point. It's all about timing and sequence of returns. I'm not in favor of this strategy completely replacing all market linked accounts. You need a variety of options.
@@CashValueLifeInsuranceReviews I decided to build a model to compare. Here is a summary of my results. An IUL does not compare until you have a fairly conservative portfolio.
www.reddit.com/r/personalfinance/comments/dvsj6r/which_retirement_machine_yielded_the_most/
@@zolly84606 Nice job. It's fair to say that people's situations are unique. From the numbers I've ran if you can't stand a lot of market exposure for 20 or more years then iul becomes attractive. Wait too long and you may not qualify for it anyway.
Just LOVE Matt’s videos!
I see a ton a videos on IUL but not one showing a policy that performed as designed during the loan years.
Great presentation. Thank you very much.
Glad it was helpful!
Great presentation and explanations on cash value life insurance. My biggest concern is how somebody can lose on them. Outside of not paying your premiums, what are some of the ways, real or myth, that people can lose or think they can lose their investment or the illustrations presented don't turn out as explained (or not explained in some agents' case)? Can you discuss or make a video on some options for people who may have gotten a badly structured policy. Are there options to get out of it or trade it in for a better structured policy either with the same company or a different one without penalties or losing their investment? Thanks for taking the time to make and share these videos. I'm a new agent (a second career) and your channel does a great job of explaining the different products. Feel free to direct me specifically to other videos for your answers. I haven't watched, and re-watched, them all but am slowly working my way through the list. Thank you again.
CVLI video section was great and useful for me!!
How can we get that awesome tool? Thanks
Thanks for watching!
If the face amount it’s 100 k. And the cash value it’s 10,000 if I die . Will the beneficiary receive. The face amount plus the cash value ?
Depends on the DB type you chose! Thanks for watching.
Thanks for another organized, informative video. I'd love to see you tackle just why the cost of term insurance shouldn't be a worry in the later years (80s / 90s). I own a properly structured IUL but with all the warnings and doomsayers out there, now I'm nervous. I'm about 5 yrs in of overfunding (but not maximum funding) and in upcoming yrs may switch to basic premium payment. Is my policy still protected from blowing up in a few decades? What if there is little upside in the index over that time? I look forward to your take on this subject. Keep up the great work! It's such important info.
Last years returns probably helped quite a bit. Depends on how it's set up though.
Also look at how much insurance u bought with your premiums.
Id like to book an appt to speak with you.
Great video. Thank you. Do you have any take on Curtis Ray MPI?
Newly learning insurance here. Why does a person want a lower rate of return when retired? I heard something about risk, not really understanding. I was just thinking if an IUL has a 0%-.25% floor then why would you want a smaller rate of return rather than a bigger one?
Do any of these policies have a decent guaranteed floor that will provide minimal returns and cover fees yearly?
guaranteed floor? I'd say no, not the ones designed for cash accumulation. That adds too much expense to the policy. They do have decent fixed accounts through. 4-5%
I believe there is a few that do. For Ex. TransAmerica (TA) has a guaranteed floor of 0.75%
@@rustysmith8963 you can get a floor, of course. But will it cover expenses? I'd guess no. Either way, mathematically, a floor isn't worth it. Only comes into play 20% of the time, and the trade-off is usually lower caps or higher fees. Some will do floors of 2.5% but only credit the guarantee every 8 years....so not a true floor. Penn can build in a floor, but not enough to cover fees.
You don't want a floor...it will take away from your upside. Just use the fixed account, not bad at 4+%. But in down years when the fixed account would benefit, that is the time to reallocate to index strategies to catch the "pop" or recovery in the market...like right now....down 15 %. Good time to start.
I am 65 years old, is it too late to start CVLI policy since the cost will be higher for elder?
Possibly. What is your time horizon like? What are your goals?
How does the surrender values work with IUL? Is there a specific reason to to be able to surrender the policy? And would there be a tax penalty when surrendering?
No tax penalties, and you don't need a specific reason. You always have access to your cash surrender value, but that is different than your accumulation value. Keep in mind surrender charges.
@@CashValueLifeInsuranceReviews i own an IUL Policy but yess the surrender charges are very High!! 😒 im pretty sure my policy was designed the wroNg way.. i waNt to caNcel but then i get confused again... caN u help me with that???
@@grissmendoza831 Yes I can!
Head over to my website to get a policy review for free!
leveragedwm.com/iul-review
Matt I am surprised that you dont mention the IRMAA bracket "tax" for high income earners in retirement.
What are the things we should be doing before getting into this strategy?
Booking a call with us!
How does these policy earn 6% if they are not investing my money in the bonds/equity? what happens if inflation goes high, would 6% increase with the inflation? Out of my monthly 3000 how much is going towards life insurance and how much is actually going towards my equity? Also, basic point of tax deferred account is you will be in lower tax bracket because your income will be low when you are 70+. Amount in each tax bracket will keep increasing every year as per inflation.
Will you be in a lower tax bracket? That’s not a given.
@@CashValueLifeInsuranceReviews if one is in 24% federal tax bracket in their late thirties, when they retire say at 65/67, before RMDs start, social security would be the only sure income other than salary. you also get a sweet spot of 5 years, 65-70 where you can convert traditional to ROTH IRA. if in today's dollar you are in 24% bracket, if salary and brackets increase same as inflation you will be in same bracket when you retire. if no salary income, you will be sure in the lower bracket. at greater than 72, most people will not have salary income.
So the agent shouldn’t make a commission? Why would they sell the IUL? If no one sells IUL’s then how can you buy one? The agent’s commission is based on a percentage of the first year’s premiums. If the premiums are higher, the commission will be higher, the cash value will accumulate more quickly, the death benefit will be higher, and your money in retirement will be higher. If the premium is lower, then it will be the exact opposite. There is no other way to structure it. When you smear agents as dishonest and greedy, you erode confidence in the insurance industry as a whole.
Christopher, its comical to me that you are proving one of my main points about this industry. I would say that most agents are undereducated on the products that they are selling. This comment shows that you don't really know what you are talking about.
@@CashValueLifeInsuranceReviews you’re a typical salesman doing the old “don’t trust other salesman, only trust me” act. It’s boring, it’s old, and it’s tired. Time to come up with a new schtick.
Not really important but HSA’s were not included in tax-free bucket. “Tax Free” is sort of a misrepresentation. You pay the taxes on contributions, the only “tax free” portion is the growth. You have to consider that you are putting less money into the “tax free” money because you are paying the taxes now(typically average 30%). Where tax deferred will be a bigger “bucket” because you don’t pay taxes before you go in.
Example:
Roth & CVLI
You have $1,000 you pay 30% in taxes $300 and put $700 into your Roth or CVLI
401(k) and IRA
You have $1,000 if you would pay 30% that would have been $300 but since it’s tax deferred you don’t pay the taxes so $1,000 goes into the account.
In the the Roth $700 is invested.
In a traditional $1,000 is invested.
So if you are a high income earner you will be paying more in taxes now so it would be better to defer the taxes and invest in your 401(k).
All of this is not taking into account your future tax status. Do you think taxes are going to just stay the same when you get to retirement age?
@@CashValueLifeInsuranceReviews i try to tell my sister to stop fund her 401k ira roth ira and to fund new IUL with living benefits ==our VUL is growing cash value - i think i should change my VUL to IUL
@@CashValueLifeInsuranceReviews typically yes your tax bracket is lower because of your social security is not typically taxed because of the step bracket taxing. If you are insinuating that you think tax rates will be higher it’s tough to say. Plus I would argue that Social security brackets have not been adjusted for inflation since the 90’s so it is entirely possible they could go up. Also, you have to consider the fees on the IUL or VUL. Plus with interest rates at all time lows IUL caps are so low that once fees are taken into consideration you would need to max the cap to make 2.0% or less which wouldn’t even keep up with inflation. Can you make a video breaking down fees? That would extremely transparent of you.
Most of your social security is not taxed*
@@danielowens4013 if govt owes trillions - i dont know if will be able to get social security
Excellent!
Thank you for the information
What is the tool used to compare IUL to other options?
It's called insmark. Does all kinds of comparisons.
How do you access the cash value totally tax-free?......
Life Insurance is deemed a tax-free vehicle by the IRS.
I recently purchased IUL and need your opinion. What would be best way to reach you, if you can help please.
matt at leveragedwm dot com
@@CashValueLifeInsuranceReviews
Is this IUL cash value is absolutely tax free if I withdraw portion of cash from the account before age 591\2??
@@roselyhualngo2069 withdrawal? Maybe. You will need to switch to loans at some point. But there is no 59 1/2 penalty.
If someone already has a plan like this for more than a few years but not structured properly can they make changes to the existing policy or do they need to get another policy?
It really depends.
If you are looking for a free review of your policy, we are happy to help!
calendly.com/leveragedwealth/lwm-yt
The "tax free" term needs more clarification. Is it just the death benefits or even the capital gains that you make are tax free?
uday bedampeta income tax free
@@CashValueLifeInsuranceReviews www.currincompliance.com/life-insurance-law-blog/2016/12/1/fact-or-fiction-iuls-can-be-a-tax-free-source-of-retirement-income
Looks like there is lot of grey area on what is tax free and what is not
uday bedampeta it’s not grey at all. The rules are clear. Very easy to navigate them.
How can a policy guarantee 6.64% return in the current interest rate environment. Guaranteed returns can only come from the fixed portion of the policy.
Very simply - no policy guarantees this return.
@@CashValueLifeInsuranceReviews In that case, how can I use that number of 6.64% to make a fair comparison between Roth IRA and IUL?
@@MyDuurbin Is the ROTH guaranteed?
Can I use My 401 k money to buy IUL _i am 60 years old
You will pay taxes on the withdrawal, but if you are over 59 1/2, you will not pay penalties for early withdrawal. You will want to discuss the impact of taxes & funding strategy with a professional - if you don't have one, we'd be happy to chat - book time with our team: www.leveragedwm.com/bookmeeting
As a relatively new agent to IUL's and CV life insurance, how can I ensure I structure the IUL properly?
You need to do an individual-based assessment of the client; meaning are they looking for protection/death benefits: then you give them that without lapsing the policy-it is imperative to show the client how their cash value will perform in the policy (the illustration will show you), 2nd is the IUL for cash accumulation for tax free retirement then you give them that and keep the death benefit as displayed, also emphasize on the yearly MEC if they have a lumpsum to invest into their policy which will skyrocket their cash accumulation, 3rd is the IUL for college funding, do they want to stop paying at retirement age ect...
Personal assessment of the client is imperative. I do what's best for my clients, and I do it with my heart, I am not concerned about getting a high commission because I want to help my client and I would want the same to be done for me. I always get blessed from above for being honest.
@@anicharlouis394 I would like to talk with you about my iul life insurance. What’s the best way to contact you?
@@abespalko I do the exact same thing with several years in the industry. I specialize in IUL. Would be glad to assist you if you didn’t hear back from them.
Hey man don’t mean any disrespect, but what’s your IUL AP for 2019. I like what you’re saying and doing but this is very complicated. Is this how you make a living selling it or is it different in front of a client?
Is this just meant to be educational? Because I’m definitely learning a lot but I’ve heard simpler ways to explain it
IUL is one service my firm offers. Is that what you are asking?
@@medicarehowto It's educational and I also fix broken plans. Most IUL plans sent to me are flawed.
Cash Value Life Insurance Reviews no what I’m asking is how much IUL do you actually sell.
@@medicarehowto A good amount when appropriate.
Do you need a medical exam for an IUL? I have moderately high blood pressure.
most companies require an exam, yes
I would like to start compounding and pain myself Ursula 10% of my income
Thanks for watching!
Management fees reflected in columns (2b) & (3b) IRA = 1.50%Roth IRA = 1.50%. Nice try.
Have you looked at management fees recently? I have clients coming to me paying close to 3%.
I can take the management fee all the way down to .25%, project an 8% return for life, and still run out of money at age 92. nice try ;)
I pay less than 0.14% and that includes the employer plans.
I can sit here and bust this illustration on the non-guaranteed nature which is also state in the illustration which you conveniently forgot to mention on top of the fees that you also forgot to mention. Why limit to 0.25%? There are funds that have 0 expense now.
At 10 basis points you run out of money at age 95. the life policy still has 169k in cash. This of course assumes that you manage to earn 8% every year and avoid market losses altogether.
Hagan ilustraciones para aquellos que no ganan tanto ,lo entiendan mucho mejor con numeros mas en linea con lo que ganen.
I'll do what I think is best on my channel. Thanks for the feedback.
So this channel is only for high earners? The training is great but for those agents that deal with lower earners (for now) it would be nice to see some lower earners scenario. Thanks for the videos
These plans work perfectly if the person dies in his or her 70s. If this person lives in his/her 80s the cost for the insurance will suck this policy dry.
After listening to this video I see you are 95% life insurance salesman. The 5% is probably helping clients grow their wealth.
The reason high earners buy CVLI is because they were SOLD by a slick salesperson.
Most rich people in their 60s, 70s, 80s, etc. care less about risk as you put it. I know many rich people who have 80% plus of their portfolio exposed to the stock market. They have enough passive income coming in to pay the bills, etc.
Raj Beekie you are right about poorly designed products not working well in later years. In fact, this is a topic I discuss ad nauseum.
When properly designed as a minimum commissioned sale these problems don't manifest.
And no...I am not 95% life insurance...This channel is 95% life insurance, that's the idea... It's in the name.
Thanks for the comment!
if i may add, two types of life insurance agents exist - 1 ones that are property casualty people who sell it to cover risk or banking agents that just use it to cover the risk. 2 professional career agents that look to help the client with risk and finance. the number 2 person actually has to diagnose the client and understand and get a lot of information to advise. option 1 people just quote and usually just want to make a sale and they only understand permanent policies have larger commissions so not many career guys exist anymore because its a long term solution and a long term business model. very few want to wait for 10-15 yrs to create a strong business model or plan
My experience tells me that most insurance only agents are poorly educated.
my 31 yrs has proven otherwise! my point permanent cv life insurance "if sold and coached correctly" pays "the day" if a death occurs. it now allows for option 2 (yes I know a cost exist for it). index allows for a better chance of returns (if funded correctly and client understands the principles). living benefits are amazing, ask any client that's received them. flexibility, maybe on the target end when starting but a well trained agent works every yr to explain to client that he should indeed increase to keep up with at least inflation. a true relationship exist to combine the family, CPA, 401K, and attorney. to name a few! I do not know of many who go this far in depth, hell most financial guys just want a fee based deal to be worth "x" amount of dollars so they can feed off 1% ( that adds up to be a lot). old fat hog life insurance policys and renewals are mostly gone. life insurance along with that taxation understanding goes a long ways to be a "part" of ones overall planning! nobody wants to discuss life insurance and that's why its the most difficult field vs selling rollovers and ignoring the whole qualified discussions ( I personally know 4 guys that just do investments that never want to discuss life insurance because they say that's way to much work to get into all that stuff! true that!
I think we are saying the same thing. I wasn't saying YOU were uneducated. Only the majority of agents i see.
is it good idea to max out 401-k?
kunal amin certainly could be!
my mom has one such policy, she is 65. Almost 30% of her premium goes towards life insurance(that is 33% tax bracket right there). this increases as she grows old. 2-4% goes towards fees every year(just like expense ratios). you are stuck for the policy term. if you want to break the policy in between, there is surrender value almost same as total premiums paid. This is useless for most people in my view. no need to mix life insurance and investment. you don't need life insurance if you have no liabilities. house paid, all children settled in their life, social security, decent savings and that's it. I would rather pay for my children's education compare to leaving them life insurance money. if one is young(20-50) and has liabilities, get a cheap term insurance.
Why is she still paying premium at age 65. That’s the first red flag.
@@CashValueLifeInsuranceReviews policy was taken when she was 59, 10y paying term.
my sister bought a 500K VUL on my mother policy = still paying 70 yrs old VUL cash value still grow we can't change her VUL to IUL she's 70 yrs old= by 5-10 yrs her VUL grows more cash value and me and my sister will have some income.
I think people need life insurance and investments= my parents and sister know to invest in stocks = if no liabilities i still will buy life insurance = you need more than 1 type of investments to fund your house - heard you can buy life insurance that have cash value to fund your children's education.
@@audreyl704 VUL....how is it doing?...market down 7000 points....big time ripoff...
9:00
What are you talking about...disparaging agents? I would be very happy with commission generated with $36,000 annual premiums....that is properly structured....so, I really don’t know why you are painting the agent pool as so greedy and incompetent.
The majority is greedy and incompetent.
Most agent's poorly trained and dumb as a rock.....
IULs are garbage with their high fees/commissions and capped gains. Don't use an insurance company to invest in the stock market.
O
Oh dear lol
L
You don’t need to bad mouth of your own profession people ..........grow up !!!
I think bad agents should be exposed.
Great video. Thank you. Do you have any take on Curtis Ray MPI?
MPI is a marketing term, its not a real product.
@@CashValueLifeInsuranceReviews it’s a real product, it’s his spin in IULs. Whether it’s good or not I’m not sure. Ben researching it for the last 4 months, wanted to know your take on it. Another one is Doug Andrews Laser fund (another take on IUL).
@@Jose-Guerrero-1754 MPI is not an actual product, its a marketing term. He is still using IUL's or Whole life products.
@@Jose-Guerrero-1754 Doug Andrew expert....40+years....