Common sense should tell you that Buying Term insurance at only roughly 8% of the cost of IUL life insurance is better. Take the other 92% and invest it yourself in an IRA.
Red Chevy If common sense includes knowing when you die, I'd agree. Otherwise, you're wrong. I'm personally getting a participating whole life insurance policy with a mutual company, and I know a couple people who are happy with the results of the exact same policy I'm getting.
Knowing when you die has nothing to do with this equation. I have bought one of those scam cash value policies before and they simply do not perform well. I had ZERO cash value at the end of the term. POS policies are ripoffs. If you like getting a negative return on your investment, then yes...buy a ripoff cash value policy.
Red Chevy You say you bought a cash value policy, then you say it had no cash value at the end of the term. That's contradictory considering term polices do not have cash value included. Unless your agent told you it did. Which I can say it is just as much his fault for misleading you, as it is yours for not doing your homework.
Exactly. Just like CASH and VALUE are contradictory the term Cash Value Life Insurance. As you just mention, there is little cash or value to purchasing these scam policies. If anyone fails to believe me, all they need to do is purchase a $100K policy of BOTH Term and Cash Value and check out the difference 5 years later.
Red Chevy You're misunderstanding. You say you bought a cash value policy and by the time the term was done, there was no cash value. That's because it's a term policy, which means it's not a cash value policy. Term doesn't include cash value. Whole life insurance includes cash value, and whole life has no end term. Which indicates either you're lying about having bought a whole life (cash value) policy, or for some reason you thought you did. After the 1st year of my policy, I will be able to take out 50% of premium I put in, after year 7-8 I will be able to take out equal to or slightly more than the amount of premium I put in. After 40+ years the cash value will substantially exceed the amount of premium put in through the 40 years. If I die with a loan outstanding, the death benefit will payoff the loan. For example let's say I put in $400k of premium over 40 years, the cash value will be 1 million, the death benefit is 3.5 million. I decide to take out 500k of the 1 million available to me in cash value and die without paying it back in my life time (living benefits) and between the time I took out the loan to the time I died the interest was an extra 50k. So the outstanding loan payment is 550k. The death benefit going to my beneficiaries would be 2.95 million. I got to use my policy in my lifetime and my beneficiaries still received 2.95 million income tax free.
I don't like IUL or WL for all the reason shown in this video. But this truly is a fair explanation of IUL.
Great video.
Can someone explain this in simpler ways
Clear as mud, terrible overview of an IUL
Blue sky said "insurance is a money loser".....that is the old way of saying it will never happen to me.....plain unrealistic stupid thought process..
Common sense should tell you that Buying Term insurance at only roughly 8% of the cost of IUL life insurance is better. Take the other 92% and invest it yourself in an IRA.
Red Chevy
If common sense includes knowing when you die, I'd agree. Otherwise, you're wrong. I'm personally getting a participating whole life insurance policy with a mutual company, and I know a couple people who are happy with the results of the exact same policy I'm getting.
Knowing when you die has nothing to do with this equation. I have bought one of those scam cash value policies before and they simply do not perform well. I had ZERO cash value at the end of the term. POS policies are ripoffs. If you like getting a negative return on your investment, then yes...buy a ripoff cash value policy.
Red Chevy
You say you bought a cash value policy, then you say it had no cash value at the end of the term. That's contradictory considering term polices do not have cash value included. Unless your agent told you it did. Which I can say it is just as much his fault for misleading you, as it is yours for not doing your homework.
Exactly. Just like CASH and VALUE are contradictory the term Cash Value Life Insurance. As you just mention, there is little cash or value to purchasing these scam policies. If anyone fails to believe me, all they need to do is purchase a $100K policy of BOTH Term and Cash Value and check out the difference 5 years later.
Red Chevy
You're misunderstanding. You say you bought a cash value policy and by the time the term was done, there was no cash value. That's because it's a term policy, which means it's not a cash value policy. Term doesn't include cash value. Whole life insurance includes cash value, and whole life has no end term. Which indicates either you're lying about having bought a whole life (cash value) policy, or for some reason you thought you did. After the 1st year of my policy, I will be able to take out 50% of premium I put in, after year 7-8 I will be able to take out equal to or slightly more than the amount of premium I put in. After 40+ years the cash value will substantially exceed the amount of premium put in through the 40 years. If I die with a loan outstanding, the death benefit will payoff the loan. For example let's say I put in $400k of premium over 40 years, the cash value will be 1 million, the death benefit is 3.5 million. I decide to take out 500k of the 1 million available to me in cash value and die without paying it back in my life time (living benefits) and between the time I took out the loan to the time I died the interest was an extra 50k. So the outstanding loan payment is 550k. The death benefit going to my beneficiaries would be 2.95 million. I got to use my policy in my lifetime and my beneficiaries still received 2.95 million income tax free.