Typically 10 business days. With that said, it does not always make sense to take loans in the early years. - ruclips.net/video/Ti6SLhhFXtA/видео.html - ruclips.net/video/gSPr0lpqsZY/видео.html
I filled the form and talked to Scott and I saved his number so am not sure whether he called using a different number or what… he was to call back and tell me my simulations and options
Love these nuts and bolts that really show the performance and draw backs. Would you mind making a video that goes in depth on how to actually calculate IRR? I some companies will NOT include it. I think it’s the most honest approach and would like to start looking into the IRR on some of the IUL policies in recent I’ve written. I am like you, I want full transparency and want to relay everything to my clients including some of the concerns in the industry.
I will definitely will call in for a WL plan and would appreciate if I could talk to you for few minutes. I definitely enjoyed this clip and would say it was a pleasure to see you again. Thank you.
I would expect those variable interest rates on policy loans to start to creep up... thats the only drawback to (anything other than short term) borrowing.
Hi Lynn, thank you for the comment. Good question. VUL policies work similar to Whole Life in terms of taxation and loans. I'm not as well-versed in VUL policies and don't want to misrepresent the product.
I just got my $200k policy whole life with AAA. I understand I have to make payments to my life insurance policy and only 70% of my payment goes towards the actual cash value but what I don’t understand is for how many months do I have to Pay to get back 100k? how much money do I have to put in towards payments, to be able to leverage say $100,000? Is there any particular life insurance company and policy in which this method would benefit the most ?
Thanks for the comment and questions! - I would review an illustration (Guaranteed & Non-Guaranteed Values) and track your total payments vs. total cash value. - In order to leverage $100,000 you would need to have at least $100,000 in cash value. - This is possible with most cash value life insurance policies. However, we recommend the 4 Major Mutual companies as we have seen them deliver strong cash values to policyholders. - ruclips.net/video/-vzpCdVDrX4/видео.html
Good question. It can work well to pay off debt. A policy would first need to be funded (Cash value built up). You can then take a loan against the cash value to pay off your high-interest debt. In a case like this, we like to review what the policy looks like if you use the policy to pay off debt vs. using cash to pay off debt. I've included a video that provides more information on policy loans. - ruclips.net/video/Vwh5HIQCcLs/видео.html
Can you do an example covering Northwestern Mutual? I have a few policies and don't understand how the dividend can be higher than the loan rate. Is it just my policies or NW Mutual that can't do this? The best my NW advisor could do is 5% on both dividends and loan. Not adjusted for IRR. I do have an much older policy from 10 years ago that has an interest of 8%. Was this a bad policy from a different advisor? Thanks for the videos. I think transparency really helps. Otherwise you get other influencers that say "Something was hidden here so bad product".
Thanks for the comment Karla! Good questions. See below. Can you do an example covering Northwestern Mutual? *** We are rather limited on the details of Northwestern Mutual products. NWM is one of the few companies that exclusively works with career agents (Not brokers). I have a few policies and don't understand how the dividend can be higher than the loan rate. Is it just my policies or NW Mutual that can't do this? *** Northwestern's Dividend rate is presently 5.00% on all policies. It is possible that the dividend rate increases in the future and you have a higher dividend rate than loan interest rate. The best my NW advisor could do is 5% on both dividends and loan. Not adjusted for IRR. I do have an much older policy from 10 years ago that has an interest of 8%. Was this a bad policy from a different advisor? *** The older policy with an 8% loan rate is a good product. Northwestern will typically raise the dividend rate to 7% when loans are taken during years 1-20. Begining year 21 of the policy, they will apply a dividend rate of 7.75% on loaned dollars. Northwestern had done this for policies with a fixed 8% loan rate. I am not certain if they still practice this, but my guess is that they do. Thanks for the videos. I think transparency really helps. Otherwise you get other influencers that say "Something was hidden here so bad product". *** Thank you!
In the UK cash value whole life insurance is non existent, any ideas on how someone can utilise the leverage benefits of a cash value whole life policy when in the UK? Maybe a policy that allows overseas policyholders! I would greatly appreciate your help…
Good question. I've included a video that provides information on what is required to obtain a policy in the U.S. - ruclips.net/video/tEaNiffJUZ4/видео.html
I totally understand this concept, but I can't get past having a loan from the insurance company that should be paid back. As a lower income person that is a concern. Also, that cash value isn't paid to my beneficiaries so basically the company gets all that back and take the outstanding loan from the death benefit lowering the payout after I die.
You don't have to pay it back, the dividends will more or less wash out the loan interest. With regard to your last statement, sounds like the "you get cash value or death benefit, but not both" claim. This is a misunderstanding that thinks of cash value and death benefit as two different things, as opposed to cash value being a part of the death benefit. Cash value is basically the amount of cash you can use while alive. Your death benefit will grow as your cash value grows, it does not remain stuck at initial death benefit amount, thus the concern doesn't make sense.
Thank you for the comment. In a case like this, we would look at models displaying what your policy looks like if loans are taken and not repaid. I've included a video below. - ruclips.net/video/uNhPmqAeLo8/видео.html
Get Our 3-step Guide to Using a Whole Life Insurance Policy to Buy Real Estate here ➡ hubs.li/Q02PmV5H0
3:00 4:00 appreciate 7:00 loan 12:55 div rate 17:00 drawbacks 19:15 lost of liquid 21:00
how long do you have to wait to borrow on that policy though?
Typically 10 business days. With that said, it does not always make sense to take loans in the early years.
- ruclips.net/video/Ti6SLhhFXtA/видео.html
- ruclips.net/video/gSPr0lpqsZY/видео.html
Thank you for sharing your wealth of knowledge and experience with us. and masterful style of presentation.
Thank you! :)
I filled the form and talked to Scott and I saved his number so am not sure whether he called using a different number or what… he was to call back and tell me my simulations and options
Thank you for letting us know. Can you email us at info@ibcglobalinc.com? I (Steve) review that inbox regularly and will review our contact records.
Love these nuts and bolts that really show the performance and draw backs. Would you mind making a video that goes in depth on how to actually calculate IRR? I some companies will NOT include it. I think it’s the most honest approach and would like to start looking into the IRR on some of the IUL policies in recent I’ve written. I am like you, I want full transparency and want to relay everything to my clients including some of the concerns in the industry.
Sure. We pull from the insurance carrier software and also have our own formulas for annual and average IRR.
I will definitely will call in for a WL plan and would appreciate if I could talk to you for few minutes. I definitely enjoyed this clip and would say it was a pleasure to see you again. Thank you.
Thank you for the comment and kind words! Steve can be contacted directly at steve.parisi@ibcglobalinc.com
I would expect those variable interest rates on policy loans to start to creep up... thats the only drawback to (anything other than short term) borrowing.
Agreed.
I have VUL from prudential. So is it the same as whole life ins if I take out a loan from cash value?Can you do an in depth video for VUL?
Hi Lynn, thank you for the comment. Good question. VUL policies work similar to Whole Life in terms of taxation and loans.
I'm not as well-versed in VUL policies and don't want to misrepresent the product.
I just got my $200k policy whole life with AAA. I understand I have to make payments to my life insurance policy and only 70% of my payment goes towards the actual cash value but what I don’t understand is for how many months do I have to Pay to get back 100k?
how much money do I have to put in towards payments, to be able to leverage say $100,000?
Is there any particular life insurance company and policy in which this method would benefit the most ?
Thanks for the comment and questions!
- I would review an illustration (Guaranteed & Non-Guaranteed Values) and track your total payments vs. total cash value.
- In order to leverage $100,000 you would need to have at least $100,000 in cash value.
- This is possible with most cash value life insurance policies. However, we recommend the 4 Major Mutual companies as we have seen them deliver strong cash values to policyholders.
- ruclips.net/video/-vzpCdVDrX4/видео.html
How can this be used to pay off a high-interest (11%) debt?
Good question. It can work well to pay off debt. A policy would first need to be funded (Cash value built up). You can then take a loan against the cash value to pay off your high-interest debt. In a case like this, we like to review what the policy looks like if you use the policy to pay off debt vs. using cash to pay off debt.
I've included a video that provides more information on policy loans.
- ruclips.net/video/Vwh5HIQCcLs/видео.html
Can you do an example covering Northwestern Mutual? I have a few policies and don't understand how the dividend can be higher than the loan rate. Is it just my policies or NW Mutual that can't do this? The best my NW advisor could do is 5% on both dividends and loan. Not adjusted for IRR. I do have an much older policy from 10 years ago that has an interest of 8%. Was this a bad policy from a different advisor?
Thanks for the videos. I think transparency really helps. Otherwise you get other influencers that say "Something was hidden here so bad product".
Thanks for the comment Karla! Good questions. See below.
Can you do an example covering Northwestern Mutual?
*** We are rather limited on the details of Northwestern Mutual products. NWM is one of the few companies that exclusively works with career agents (Not brokers).
I have a few policies and don't understand how the dividend can be higher than the loan rate. Is it just my policies or NW Mutual that can't do this?
*** Northwestern's Dividend rate is presently 5.00% on all policies. It is possible that the dividend rate increases in the future and you have a higher dividend rate than loan interest rate.
The best my NW advisor could do is 5% on both dividends and loan. Not adjusted for IRR. I do have an much older policy from 10 years ago that has an interest of 8%. Was this a bad policy from a different advisor?
*** The older policy with an 8% loan rate is a good product. Northwestern will typically raise the dividend rate to 7% when loans are taken during years 1-20. Begining year 21 of the policy, they will apply a dividend rate of 7.75% on loaned dollars. Northwestern had done this for policies with a fixed 8% loan rate. I am not certain if they still practice this, but my guess is that they do.
Thanks for the videos. I think transparency really helps. Otherwise you get other influencers that say "Something was hidden here so bad product".
*** Thank you!
@@IBCGlobalInc Thank you so much. This helps A LOT. I don't plan on taking a loan soon but want to be prepared for when I do.
In the UK cash value whole life insurance is non existent, any ideas on how someone can utilise the leverage benefits of a cash value whole life policy when in the UK? Maybe a policy that allows overseas policyholders! I would greatly appreciate your help…
Good question. I've included a video that provides information on what is required to obtain a policy in the U.S.
- ruclips.net/video/tEaNiffJUZ4/видео.html
I totally understand this concept, but I can't get past having a loan from the insurance company that should be paid back. As a lower income person that is a concern. Also, that cash value isn't paid to my beneficiaries so basically the company gets all that back and take the outstanding loan from the death benefit lowering the payout after I die.
You don't have to pay it back, the dividends will more or less wash out the loan interest.
With regard to your last statement, sounds like the "you get cash value or death benefit, but not both" claim. This is a misunderstanding that thinks of cash value and death benefit as two different things, as opposed to cash value being a part of the death benefit. Cash value is basically the amount of cash you can use while alive. Your death benefit will grow as your cash value grows, it does not remain stuck at initial death benefit amount, thus the concern doesn't make sense.
Thank you for the comment. In a case like this, we would look at models displaying what your policy looks like if loans are taken and not repaid. I've included a video below.
- ruclips.net/video/uNhPmqAeLo8/видео.html