@@WealthProtectionLady Hello I just came across your channel I'm loving your content & honesty...with that being said will you be willing to do a video on infinite banking & how to properly structure it ....for example which policy specific makes it work & which ones doesn't...Thank you & keep up the fabulous work!
100% in agreement. I am so grateful that as an agent, I was only trained to properly structure the product for maximum Cash Accumulation. 👏🏽👏🏽👏🏽 Thank you for sharing!
FINALLY AN IUL VIDEO ON HOW TO STRUCTURE IT PROPERLY! And yes it is criminal that agents sell these as investments products to the uninformed… and criminal the agent only cares about his/her commission!
I found your channel a few days ago and it is truly the only one where I get real information and education about insurance. The vast majority of content out there is basically fluff. Thank you for your dedication.
Simply amazing ma’am! You’ve put the facts out as transparently as possible - no other RUclips video broke it down with so much granularity as you have. A single slide explained it all and the most important aspect “if structured correctly” now totally makes sense!
Thank you for explaining clearly ,, my agent actully did that to me more comission for her by giving me big death benefit, i found out when i got my license, but i also learned that i can change it in 3 year, reducing death benefit.
Thank you so much. You are unbelievable. You are the only one being truthful. Most agents hang up on me because they can't get rich off of me because I don't let them know what I know. I filled out the application. I'm looking forward to doing a lot of business with you. Please call me when you can. You rock.
Hi, Roy! You are a "baby" lol. I'm 63 and I am not too old for an IUL. Depending on the amount of premium, you may not have to have a paramedical exam.
Simple and easy I love the way you explain things! You make it so easy to understand, so thank you! For us close to retirement, it helps. some of the agents have just confused IULs
Carriers I work with pay off your target premium not your annual premium. The goal is to have about 80% of the premium going to cash. Not making as much commission, but I’m using the product in the correct way. I show the fee breakdowns in an IUL to clients and explain my commission. Nothing to hide. So many agents don’t understand this complex product or just don’t care. Makes the whole industry look bad.
The video and presentation are very good and informative. I just have a couple of comments, if the objective is cash value (not always the case), then the wisest would be 7 years max. Second, not all people would like their benefitiaries to be protected for one million instead of 1.5.
Bruce, if you are interested in an IUL, I would recommend watching my "IUL on Steroids".ruclips.net/video/zB5f0XsClR4/видео.html&ab_channel=WealthProtectionLady. If this is something you are interested in, there is a link below that video to schedule a time to talk.
I know you explained it, but can you tell me how can I increase the cash value it does it depends on the certain type of insurance what does the agent have to do to make sure that my cash value is increasing?
It's the increasing death benefit which is what you want while you are contributing a premium. The increasing death benefit option is the cash value plus the initial death benefit. The agent chooses increasing vs level in the illustration software
Always appreciate your straightforward and un-hyped delivery! I know that some people start with a level death benefit for first 5-7 years and then stop funding completely. I was wondering why they would do this instead of starting with an increasing death benefit, and then switch to level in year 8?
Starting a policy with a level death benefit makes the death benefit really high. The fees and charges on an IUL are based on the death benefit. The higher it is, the more expensive your IUL will be. We use an increasing death benefit while premiums are being made and switch to level after that.
Great video, although I would say that some clients truly just care about the death benefit and like the idea of potentially qualifying for an IUL because it's going to give them more coverage for a better price rather than stacking a bunch of whole life policies to achieve that same desired face amount. At the end of the end in my opinion you gotta just see what their trying to do. Build tax-free wealth or protect their family for as much as possible for a reasonable premium if their health allow them to qualify.
I totally agree! For people who only care about the death benefit, an IUL is NOT for them. IULs are totally about maximizing cash accumulation within a life insurance vehicle where you want all the benefits of IRS code 7702 but with the absolute lowest death benefit you can get away with, which is the lowest the IRS will accept. If my clients want more life insurance, I quote them term.
So higher cash value and lower commission. But overall we traded 1.5 million death benefit + 500k cash value (2 million total) for 800k cash value and 500k death benefit (1.3 million total) for the same investment. Although I suppose the argument is we got a tax advantage with the cash value that isn't considered income, so the benefit would depend on your tax bracket. In terms of estate, the estate tax exemption is 12 million (set to cut in half by 2026) and life insurance paid to beneficiaries due to death isn't usually taxable so I wouldn't see this as setting your heirs up for success. Would be curious to see how this stacks up versus a term policy with passive index investing in a Roth since life insurance premiums are after tax and are not tax deductible
An IUL is not about the death benefit. If we didn't have to have it, we wouldn't, but it's the only way to get all the cool benefits you get from a life insurance policy that you cannot get from an investment account. We want the LOWEST death benefit the IRS will allow. So, the idea is to put money into it and then start taking an income from it where you are buying down the surrender value and the death benefit. If you want life insurance, buy term.
Very good info. My death benefit is 421.55k that i started at 25. I always wondered how much my agent made on it. It felt impolite to ask. I feel bad for those people who lost 300k on the cash value
This is a high death benefit. Chances are your agent made a big commission. If you want to lower your fees, call the carrier and ask to lower the initial death benefit.
Very nicely done! Started with New York Life in 1989. Which companies, in your opinion, offer the best IUL’S? I really believe it’s a great tool that will supplement retirement and meet an individual’s insurance needs but I’ve always had one concern. The flexibility of the premium is a plus but I’ve always thought about not having any guarantees on the cost of insurance. The way the contract is written gives the Insurance Company the right to change the COI throughout the life of the contract. Am I correct in that interpretation? I have a program where the IUL or UL is a perfect match. Just want to get your thoughts about the COI not having any guarantees down the line. Would love to share this concept with you if you’re open to a zoom or phone call. Thanks for making the video. I’ll bet this helped so many people understand their options and opportunities. Thanks, Joe
I watched your other videos. You answered my question about the best IUL Company! Wow! That’s amazing and your videos and sincerity are equally amazing. I really want to speak with you about the concept I’m using IUL’S and UL’S to fund the need. The Insurance industry would benefit and completely change its perception by having people like yourself EDUCATE AGENTS before turning them loose. 2 thumbs up. Knowledge Really is power!
I really like the way you illustrated the different types of policies. Very cool. Are premiums stable in an IUL? Is the $20,000 a year: a cap, a fixed amount, an assumption? My concern is that I get a health problem out of nowhere and my premiums skyrocket.
Thank you, Jon! Premiums are stable in an IUL and if you were to become ill at any point after starting one, it will not affect your premium. The IUL I sell is uncapped with a 115% participation rate and a 190% bonus multiplier. You are also guaranteed no less than 2% interest rate in the worst case scenario.
Very helpful to understand how the policy works. But if we look at the end of 21 yrs in the 3 scenarios 1.5M death benefit has total of 2.1M+ , 1M+ death benefit has 1.6M+ and 400K+ death benefit has 1.2M+ total value. As age grows all 3 scenarios grow right. Can you help me understand if I’m missing something here. Appreciate your input.
I would have to re-watch the video (it's been a few years) in order to answer your question. The gist of the video is that you want the lowest death benefit the IRS will allow and increasing to level death benefit options.
Easy to say that Agents dont stucture them right, but most of them dont get the proper training from their own companies and IMOs. They teach you the basics and then your left trying to figure it out on your own.
Hi, Nancy! The best thing to do is to complete the questionnaire from the following link and we will get back to you. I would recommend you watch IUL on Steroids, if you haven’t already. application.wealthprotectionlady.com/
If you want me to properly structure an IUL for you, please complete the questionnaire from the following link and I will get back to you: application.wealthprotectionlady.com/
nice info.. Thanks Do u mind showing/sharing annual statements of IUL atleast 10yr old? (mask personal info). Would like to know how costs/fees impacted real returns (not hypothetical illustration #s).
I don't have any annual statements because those are confidential to the client, but I can run an illustration for you so you can see what the fees are. Watch my video on the specific IUL at ruclips.net/video/zB5f0XsClR4/видео.html&ab_channel=WealthProtectionLady Here is the application for me to run an illustration for your 10 year-old: form.typeform.com/to/SNfW1IBA
@@WealthProtectionLady we have seen enough of illustrations. Those wont give clear picture of really how policy worked. Sharing annual statements with masked info is fine.
As an agent, one of the main goals is to make sure the client is properly insured based on their need. What do you think about that? Also, with increasing death benefit, since the death benefit is increasing, is there a possibility that the premium might need to go up to sustain the policy? Thank you! 😁
The goal is always to make sure your client is properly insured based on their need. As far as increasing death benefit, that is the initial death benefit plus the cash value of the policy, so the premium does not go up.
Watch my video on evaluating IUL illustrations. It will help you to distinguish is your IUL is structured properly: ruclips.net/video/QVAD79cdP5I/видео.html&ab_channel=WealthProtectionLady
Hi, Bridgette! Let your agent know that you want the lowest death benefit the IRS will allow and that you want an increasing death benefit option while you are contributing a premium and then switch to level after that.
Hopefully, the Powerball winner would have chosen the annuity option, but you can put a lump sum into an IUL. It would go into the Premium Deposit Account (PDA) and it would need to be broken up into between 3-11 years. The first year's premium would be paid and the rest of that money would sit in the PDA earning around 4% interest. I tell people that I bet they can find a better place to put their money where it earns more than 4% interest like real estate.
So it seems similar to Whole Life in a sense that you're increasing the death benefit as the policy goes on, except in WL, we just use PUAs to do it. How do you keep the policy from imploding as it gets older? I'm of the understanding that the COI increases as you age and this could raise your premiums?
The increasing death benefit is simply the initial death benefit plus the cash value. The cost of insurance is annual renewable term and does increase as you age but I think you are confusing a premium (which is your contribution) with fees.
The policy would no longer be considered life insurance and would be taxable. as ordinary income; however, this is why we use the cash value accumulation and or guideline premium tests to ensure the policy doesn't MEC.
Curious, say if you pay off your policy within 20 years, then doesn't maintaining your policy till your die would cost a lot of fees? Or you think the rate of return would justify the fees? My understanding is that the fee to maintain will increase as you get older.
IUL fees are front loaded for the first 10 years. The cost of insurance is annual renewable term, so it starts off lower and increases over time. This is usually a big concern because the cost of insurance with some carriers can get really out of control. The IUL I sell, begins reimbursing you for your expenses starting in year 11, so the rising cost of insurance is a non issue. The average annual return on that policy is 17.04% but it is the lowest cost IUL in the industry. Some carriers are very expensive, so you have to be careful.
Make sure to watch my videos Life Insurance Loans and IUL on Steroids. Then, complete this questionnaire and then we can set up a time to talk about your needs. application.wealthprotectionlady.com/
I want to add an iul to my investment portfolio and I was thinking of going with prudential. Because there well known and one of the top rated companies. What is your opinion on this?
Not all IULs are created equal. Watch my video on Evaluating IUL Illustrations. An indexed product is ALL about the index -- how it performs, what it guarantees and the loan provisions it offers. I only offer Securian's BGAII with the S&P PRISM index. It is official now that the S&P PRISM index is the #1 Best Performing Index in the industry with an average annual return since its inception in 2018 of 17.04%. It has two participation rates (115% + 320%) and both are guaranteed at 100%. Securian guarantees you 2% interest in the worst-case scenario and offers fixed, and participating indexed and variable loans.
You are serious so helpful I appreciate you so much! I know your channel will grow in no time! I do have a question I am 25 years old if I did sign up for a ULI would I pay less in my situation, because I am young and in good health? Would you recommend me to start young or down the road? I feel overall a ULI have more benefits than a Roth.
Thank you, Sienna! life insurance products are all based on risk, so the older you are the more you will pay in insurance costs, so the younger the better. Roths are great for getting a tax free income in retirement, but they are subject to stock market downturns. If you would like me to structure an IUL for you, complete this application and then you can decide if this is something you would want to move forward with. IUL ILLUSTRATION APPLICATION: form.typeform.com/to/SNfW1IBA
So you’re saying put more cash in then the actual death benefit?? Explain the steps while setting it up, how to do it because of the agent is doing it for us. How do we know if we’re gonna do it the proper way? I’m not the traditional way the traditional way.
Watch my video on Evaluating IUL Illustrations. That should help you understand ruclips.net/video/QVAD79cdP5I/видео.html&ab_channel=WealthProtectionLady
There is no law that says a life insurance agent needs to structure IULs properly, but my personal opinion is that anything less than the lowest death benefit the IRS will allow is theft because an IUL is not about the death benefit. It's about maximizing your cash accumulation and by structuring an IUL for a big commission for the agent, you are doing the opposite of maximizing the client's cash accumulation and that client's fees will likely eat up most of the gains.
The death benefit would be greater than the cash value and yes, this is an investment account within a life insurance policy. The idea is that you want the lowest death benefit the IRS will allow because an IUL is not about the death benefit. It's about maximizing your cash accumulation.
There are some things you can do after the policy has issued. You can call the carrier and ask them to lower your initial death benefit as much as they can, which is usually 25% per year. You can switch indexes to one that is volatility controlled without a cap and high participation rate.
Ok but the total of (death benefit + cash value) just decreases. What is the effective way to convince your customer of the benefit if they are doing so at the expense of their beneficiaries?
IULs are not about the death benefit. If we didn't have to have the death benefit, we wouldn't. If your customers need life insurance, quote them term but make the IUL have the lowest death benefit the IRS will allow.
@@WealthProtectionLady If you didn't have the death benefit, why even have the product? One seems like they would benefit greater by putting that exact same money into a 401k/IRA/or just a straight up stock account with margin abilities for the loaning portion. Tons of brokerages offer stupid low rates, you don't sell your equities, and I'm not paying you between 7k and 30k in commissions from your examples above. I mean if you took the death benefit out of it, your only saving grace left is "well an IUL doesn't 'lose money' when the market loses money because gains are locked in" yes, but you also are capped at ridiculously low gains of something like 6-8% meaning that the death benefit is the ONLY attractive reason for a life insurance policy over an equities account at a brokerage. Correct me if I am wrong here?
My IUL is running into the 8th year now. While I didn’t lower the DB, I max funding it or t least trying to. After I paid off my debts for the first 4 years, I put in more money since. Isn’t it that eventually you are just the risk for that gap between your DB & your CV? And so that when your CV exceeds DB, then you are really owning the policy totally & that fees are all minimized? Please correct me if wrong.
The net amount at risk is the difference between the death benefit and the cash value. It is highest in the early years and decreases as the insured increases in age.
I have an illustration for an IUL for each of my 3 children from Mutual of Omaha. Is there anyway I can have you review 1 of them to make sure it's structured properly?
Could I possibly email you an illustration of my IUL and see if it’s right? I’m 25 and trying to do the right thing for my retirement but I’m getting a funny feeling I may not have done proper research before jumping in! If so let me know it would be a HUGE help!
i appreciate all this information. I've only just discovered these and would like to set up 3 of them... one for each of my kids and 1 for myself. not sure how to do it correctly. any advice would be helpful. thank you.
I am trying to learn about IUL structure. My only exposure is to whole LI illustrations in which the CV is always a (growing over time) subset of the policy’s death benefit. Would you explain how this works for IUL, and how it differs from WL? In one of the bucket decompositions you showed here, I saw a CV higher than the DB. Is that because the bucket was showing the initial DB, not the full DB (which would be CV + initial DB)? Thanks for your eduction objective here; even with your patient explanations, I still have questions about the particulars of the structure.
With a properly structured IUL, you want the death benefit to be the lowest possible. That was the initial death benefit plus the cash value which is the increasing death benefit option.
@@WealthProtectionLady Is this analogous to WL in which PUAs are used to purchase more and more total DB over the years? I have seen WL illustrations where the split between base premium and PUA in the payment plan is 9:91 or even 8:92.
ALL IUL's are increasing term policies with a cash value account attached to them... the increasing premiums go up year over year & eventually eat the cash value because you keep paying a fixed amount every year & it's not enough to cover the cost of insurance inside the policy, so they take the amount you're paying & additionally pull from the cash value to help pay for the monthly premiums & then after 25-30 years the policy implodes, leaving the client high & dry with $0.00 & NO INSURANCE. It's a bell curve... #SCAM
That is not the case with the Securian Minnesota Life BGAII because beginning in year 11, they begin reimbursing you for your expenses not just for that year, but it eventually reimburses you for the first 10 years of expenses.
@Wealth Protection Lady not a chance. All IUL's are pure junk. What you're saying is in effect, only buy the Red Corvette's, no other color is good. Now let me tell you about this Red Corvette. This one is special, it's different... etc etc.
Can you please share an actual example of a 3 year point to point crediting strategy vs 1 year point to point, taking into account level premiums for the first 5 years? I'm confused on how the crediting actually works, along with look back periods.
You are credited interest once every 3 years but all 3 years of premiums are credited interest as if all funds were in the policy day one. The 3-year has two participation rates (115% and 190%) and the 1-year participation rates are 105% and 125%. Watch my video IUL on Steroids to understand.
Thank you so much for the video. I'm learning the different LI options and and the question I have is per your example, if the 45 year old were to surrender his policy at 65 then wouldn't the best plan be the first one? (6 minute chart)? Or do you not get everything once you surrender? I was quoted an IUL policy in which I could take everything out except the initial net death benefit which is 100k. and it never changes so if at 65, my cash value is 400k then my death benefit is 500k and if I surrender, I would get 400k. so is this not the same so he's losing a lot more than he is gaining in cash value? Thanks!
The surrender value is what you would receive if you surrendered the policy; however, if you made a withdrawal of your surrender value and closed your policy, you would pay taxes on any gains. The only way you will not pay taxes is to take a loan.
The non-MEC limit is set from the beginning and will change once interest is credited. It's a number to keep in mind but if you accidentally contribute too much, the carrier will reject your payment.
Hello, I'm Interested in Setting up a IUL in Nevada. A Max Fund IUL for business and Another one for Personal.. Can you refer me to someone that is Trustworthy Here..?? Thanks in advance 😊
Hi, Randall! I am licensed in Nevada. Complete this questionnaire and we can find a time to talk. At the end of the questionnaire, mention that you contacted me through RUclips. application.wealthprotectionlady.com/
An IUL is NOT about the death benefit. If we didn't have to have that, we wouldn't, but it's the only way to get things like participation rates and being able to make money on the money we loaned ourselves. So, the way the IUL is designed is very important. If the IUL is not designed with the lowest death benefit the IRS will allow and an increasing death benefit option while you're putting in a premium, the agent is basically stealing from their client.
Finally, someone that knows what they’re doing and explain everything in a way that is simple to understand! Amazing!
Finally someone speaks clearly about IULs. This is so refreshing. No fear, just information! Bravo!
Thank you, Michael!
@@WealthProtectionLady Hello I just came across your channel I'm loving your content & honesty...with that being said will you be willing to do a video on infinite banking & how to properly structure it ....for example which policy specific makes it work & which ones doesn't...Thank you & keep up the fabulous work!
100% in agreement. I am so grateful that as an agent, I was only trained to properly structure the product for maximum Cash Accumulation. 👏🏽👏🏽👏🏽 Thank you for sharing!
Finally someone speaking informatively without drama and showmanship, thank you
Omg right
I have watched this several times, lots of good stuff. I just passed my insurance exam, thanks for sharing.
FINALLY AN IUL VIDEO ON HOW TO STRUCTURE IT PROPERLY!
And yes it is criminal that agents sell these as investments products to the uninformed… and criminal the agent only cares about his/her commission!
I found your channel a few days ago and it is truly the only one where I get real information and education about insurance. The vast majority of content out there is basically fluff. Thank you for your dedication.
Love the information thanks
Simply amazing ma’am! You’ve put the facts out as transparently as possible - no other RUclips video broke it down with so much granularity as you have. A single slide explained it all and the most important aspect “if structured correctly” now totally makes sense!
I'm so glad it was helpful to you, Koustubh!
I love IUL as a retirement risk advisor. Thank you for your teachings.
How do you use the IUL in retirement?
Thank you for explaining clearly ,, my agent actully did that to me more comission for her by giving me big death benefit, i found out when i got my license, but i also learned that i can change it in 3 year, reducing death benefit.
Absolutely correct 👍 thanks for producing this video clip. Many people have no clue🤔
Thx! This was so helpful. How do you find out the lowest death benefit the IRS will allow?
you are the first ethical agent who sells IULS correctly i have seen on youtube!
Thank you!
Learned something new today, thank you for your sharing 🙏
This is so great ! Learning more!
I am obtaining my insurance license and I appreciate the transparency and information
I love the way you explain things! You make it very easy to understand, so thank you!
Thank you, Betty!
I’m so glad I have found you! This video is very informative. Thank you so much for your explanation
in full support of your channel !!!
NC , Broker , 45+ Carriers
Thank you so much. You are unbelievable. You are the only one being truthful. Most agents hang up on me because they can't get rich off of me because I don't let them know what I know. I filled out the application. I'm looking forward to doing a lot of business with you. Please call me when you can. You rock.
Hi, Roy! You are a "baby" lol. I'm 63 and I am not too old for an IUL. Depending on the amount of premium, you may not have to have a paramedical exam.
Love the way you explain this topic, could you help me getting am IUL.
Sure. Complete the questionnaire from the following link and I'll get back to you: www.wealthprotectionlady.com/applications
I am a licensed insurance agent myself and I would really like to learn this IUL to help my clients. Nice job!
Good luck!
Simple and easy I love the way you explain things! You make it so easy to understand, so thank you! For us close to retirement, it helps. some of the agents have just confused IULs
You are so welcome!
Yes I would like a policy set up by you
If you complete the questionnaire in the following link, I'll get back to you: application.wealthprotectionlady.com/
Carriers I work with pay off your target premium not your annual premium. The goal is to have about 80% of the premium going to cash. Not making as much commission, but I’m using the product in the correct way. I show the fee breakdowns in an IUL to clients and explain my commission. Nothing to hide. So many agents don’t understand this complex product or just don’t care. Makes the whole industry look bad.
The video and presentation are very good and informative. I just have a couple of comments, if the objective is cash value (not always the case), then the wisest would be 7 years max. Second, not all people would like their benefitiaries to be protected for one million instead of 1.5.
Best video I ever seen, loved this video. Yes I need help on this I’m all in 👍🏽
Bruce, if you are interested in an IUL, I would recommend watching my "IUL on Steroids".ruclips.net/video/zB5f0XsClR4/видео.html&ab_channel=WealthProtectionLady. If this is something you are interested in, there is a link below that video to schedule a time to talk.
I know you explained it, but can you tell me how can I increase the cash value it does it depends on the certain type of insurance what does the agent have to do to make sure that my cash value is increasing?
It's the increasing death benefit which is what you want while you are contributing a premium. The increasing death benefit option is the cash value plus the initial death benefit. The agent chooses increasing vs level in the illustration software
Thank you for the clarity :)
I was not familiar with IUL. Thank you for sharing
Gaah TYSM, you've simplified so much and saved me soo much time and grown my understanding. Im eternally grateful! much love 👾💙👾
I love your content. Thank you for sharing.
You are so welcome!
Lady brings the 🔥🔥🔥
Thank you!
Very well explained...thank you
You are welcome, Laurin!
Oh my gosh thank you so much I love the straight forward .. can you make one how to rebalance or review every year
Always appreciate your straightforward and un-hyped delivery! I know that some people start with a level death benefit for first 5-7 years and then stop funding completely. I was wondering why they would do this instead of starting with an increasing death benefit, and then switch to level in year 8?
Starting a policy with a level death benefit makes the death benefit really high. The fees and charges on an IUL are based on the death benefit. The higher it is, the more expensive your IUL will be. We use an increasing death benefit while premiums are being made and switch to level after that.
@@WealthProtectionLadyhow do I get in contact with you
Nice
Great video, although I would say that some clients truly just care about the death benefit and like the idea of potentially qualifying for an IUL because it's going to give them more coverage for a better price rather than stacking a bunch of whole life policies to achieve that same desired face amount. At the end of the end in my opinion you gotta just see what their trying to do. Build tax-free wealth or protect their family for as much as possible for a reasonable premium if their health allow them to qualify.
I totally agree! For people who only care about the death benefit, an IUL is NOT for them. IULs are totally about maximizing cash accumulation within a life insurance vehicle where you want all the benefits of IRS code 7702 but with the absolute lowest death benefit you can get away with, which is the lowest the IRS will accept. If my clients want more life insurance, I quote them term.
It’s so important your Chanel that I’m going to share it with my colleagues.
Thank you for all of this info explained clearly.
Glad it was helpful!, Ricky!
thx for sharing this important information
I don't think anyone in the industry, but a few structure it best for the policy holder.
I think you're right.
So higher cash value and lower commission. But overall we traded 1.5 million death benefit + 500k cash value (2 million total) for 800k cash value and 500k death benefit (1.3 million total) for the same investment. Although I suppose the argument is we got a tax advantage with the cash value that isn't considered income, so the benefit would depend on your tax bracket. In terms of estate, the estate tax exemption is 12 million (set to cut in half by 2026) and life insurance paid to beneficiaries due to death isn't usually taxable so I wouldn't see this as setting your heirs up for success. Would be curious to see how this stacks up versus a term policy with passive index investing in a Roth since life insurance premiums are after tax and are not tax deductible
An IUL is not about the death benefit. If we didn't have to have it, we wouldn't, but it's the only way to get all the cool benefits you get from a life insurance policy that you cannot get from an investment account. We want the LOWEST death benefit the IRS will allow. So, the idea is to put money into it and then start taking an income from it where you are buying down the surrender value and the death benefit. If you want life insurance, buy term.
or perhaps add a term rider to the iul with min face amountn
Very good info. My death benefit is 421.55k that i started at 25. I always wondered how much my agent made on it. It felt impolite to ask. I feel bad for those people who lost 300k on the cash value
This is a high death benefit. Chances are your agent made a big commission. If you want to lower your fees, call the carrier and ask to lower the initial death benefit.
@@WealthProtectionLady Is 250k low? for a 1 year old?
Great job!
Good explanation. Is there a calculator to check the value?
I don't know of any calculator.
@@WealthProtectionLady Is there a way you can review existing IUL policy and make suggestions ?
Very nicely done! Started with New York Life in 1989. Which companies, in your opinion, offer the best IUL’S? I really believe it’s a great tool that will supplement retirement and meet an individual’s insurance needs but I’ve always had one concern. The flexibility of the premium is a plus but I’ve always thought about not having any guarantees on the cost of insurance. The way the contract is written gives the Insurance Company the right to change the COI throughout the life of the contract. Am I correct in that interpretation? I have a program where the IUL or UL is a perfect match. Just want to get your thoughts about the COI not having any guarantees down the line. Would love to share this concept with you if you’re open to a zoom or phone call. Thanks for making the video. I’ll bet this helped so many people understand their options and opportunities. Thanks, Joe
I watched your other videos. You answered my question about the best IUL Company! Wow! That’s amazing and your videos and sincerity are equally amazing. I really want to speak with you about the concept I’m using IUL’S and UL’S to fund the need. The Insurance industry would benefit and completely change its perception by having people like yourself EDUCATE AGENTS before turning them loose. 2 thumbs up. Knowledge Really is power!
I really like the way you illustrated the different types of policies. Very cool. Are premiums stable in an IUL? Is the $20,000 a year: a cap, a fixed amount, an assumption? My concern is that I get a health problem out of nowhere and my premiums skyrocket.
Thank you, Jon! Premiums are stable in an IUL and if you were to become ill at any point after starting one, it will not affect your premium. The IUL I sell is uncapped with a 115% participation rate and a 190% bonus multiplier. You are also guaranteed no less than 2% interest rate in the worst case scenario.
@@WealthProtectionLady which products do you offer? Since it's guaranteed 2%. It's there a fee?
Very helpful to understand how the policy works. But if we look at the end of 21 yrs in the 3 scenarios 1.5M death benefit has total of 2.1M+ , 1M+ death benefit has 1.6M+ and 400K+ death benefit has 1.2M+ total value. As age grows all 3 scenarios grow right. Can you help me understand if I’m missing something here. Appreciate your input.
I would have to re-watch the video (it's been a few years) in order to answer your question. The gist of the video is that you want the lowest death benefit the IRS will allow and increasing to level death benefit options.
Easy to say that Agents dont stucture them right, but most of them dont get the proper training from their own companies and IMOs. They teach you the basics and then your left trying to figure it out on your own.
We'd like to obtain an estimate for a properly structured IUL as you've described. How can we obtain this?
Hi, Nancy! The best thing to do is to complete the questionnaire from the following link and we will get back to you. I would recommend you watch IUL on Steroids, if you haven’t already. application.wealthprotectionlady.com/
How do we find someone that can structure iul's like that
If you want me to properly structure an IUL for you, please complete the questionnaire from the following link and I will get back to you: application.wealthprotectionlady.com/
Where to find someone that knows what they are doing.
If you want me to structure an IUL for you, fill out this questionnaire and I'll get back to you: application.wealthprotectionlady.com/
Great video! Thank you for sharing, new sub here so glad to be connected. Looking forward to more.
Thank you Debra. I just subscribed to YOUR channel.
@@WealthProtectionLady Thank you so much for your support.
nice info.. Thanks
Do u mind showing/sharing annual statements of IUL atleast 10yr old? (mask personal info). Would like to know how costs/fees impacted real returns (not hypothetical illustration #s).
I don't have any annual statements because those are confidential to the client, but I can run an illustration for you so you can see what the fees are. Watch my video on the specific IUL at ruclips.net/video/zB5f0XsClR4/видео.html&ab_channel=WealthProtectionLady
Here is the application for me to run an illustration for your 10 year-old: form.typeform.com/to/SNfW1IBA
@@WealthProtectionLady we have seen enough of illustrations. Those wont give clear picture of really how policy worked. Sharing annual statements with masked info is fine.
As an agent, one of the main goals is to make sure the client is properly insured based on their need. What do you think about that? Also, with increasing death benefit, since the death benefit is increasing, is there a possibility that the premium might need to go up to sustain the policy? Thank you! 😁
The goal is always to make sure your client is properly insured based on their need. As far as increasing death benefit, that is the initial death benefit plus the cash value of the policy, so the premium does not go up.
How do you know if an IUL is structured correctly? Ate there any particular documents we should ask for when someone is trying to sell you one? Thanks
Watch my video on evaluating IUL illustrations. It will help you to distinguish is your IUL is structured properly: ruclips.net/video/QVAD79cdP5I/видео.html&ab_channel=WealthProtectionLady
So what do you ask for ? So they do it right?..just tell them cash max?..
Hi, Bridgette! Let your agent know that you want the lowest death benefit the IRS will allow and that you want an increasing death benefit option while you are contributing a premium and then switch to level after that.
If someone wins the Powerball how would you structure that on iul
Hopefully, the Powerball winner would have chosen the annuity option, but you can put a lump sum into an IUL. It would go into the Premium Deposit Account (PDA) and it would need to be broken up into between 3-11 years. The first year's premium would be paid and the rest of that money would sit in the PDA earning around 4% interest. I tell people that I bet they can find a better place to put their money where it earns more than 4% interest like real estate.
So it seems similar to Whole Life in a sense that you're increasing the death benefit as the policy goes on, except in WL, we just use PUAs to do it. How do you keep the policy from imploding as it gets older? I'm of the understanding that the COI increases as you age and this could raise your premiums?
The increasing death benefit is simply the initial death benefit plus the cash value. The cost of insurance is annual renewable term and does increase as you age but I think you are confusing a premium (which is your contribution) with fees.
Can I know what happens if accumulated cash value exceeds the Death Benefit? Can it be structured to always be higher than the accumulated cash value?
The policy would no longer be considered life insurance and would be taxable.
as ordinary income; however, this is why we use the cash value accumulation and or guideline premium tests to ensure the policy doesn't MEC.
Curious, say if you pay off your policy within 20 years, then doesn't maintaining your policy till your die would cost a lot of fees? Or you think the rate of return would justify the fees? My understanding is that the fee to maintain will increase as you get older.
IUL fees are front loaded for the first 10 years. The cost of insurance is annual renewable term, so it starts off lower and increases over time. This is usually a big concern because the cost of insurance with some carriers can get really out of control. The IUL I sell, begins reimbursing you for your expenses starting in year 11, so the rising cost of insurance is a non issue. The average annual return on that policy is 17.04% but it is the lowest cost IUL in the industry. Some carriers are very expensive, so you have to be careful.
Thanks for all your videos great information.
Thank you, Erick!
I would love to hear more about this…
Joey, watch my videos Life Insurance Loans and IUL on Steroids
Interesting. Can foreigners not resident in America buy IUL?
You have reside in the U.S.
I am interested
The best thing to do is to complete this questionnaire and then we can find a time to talk about your needs. application.wealthprotectionlady.com/
You’re literally the result I expect when I google where can I get a iul and what is it.
Make sure to watch my videos Life Insurance Loans and IUL on Steroids. Then, complete this questionnaire and then we can set up a time to talk about your needs. application.wealthprotectionlady.com/
I want to add an iul to my investment portfolio and I was thinking of going with prudential. Because there well known and one of the top rated companies. What is your opinion on this?
Not all IULs are created equal. Watch my video on Evaluating IUL Illustrations. An indexed product is ALL about the index -- how it performs, what it guarantees and the loan provisions it offers. I only offer Securian's BGAII with the S&P PRISM index. It is official now that the S&P PRISM index is the #1 Best Performing Index in the industry with an average annual return since its inception in 2018 of 17.04%. It has two participation rates (115% + 320%) and both are guaranteed at 100%. Securian guarantees you 2% interest in the worst-case scenario and offers fixed, and participating indexed and variable loans.
You are serious so helpful I appreciate you so much! I know your channel will grow in no time! I do have a question I am 25 years old if I did sign up for a ULI would I pay less in my situation, because I am young and in good health? Would you recommend me to start young or down the road? I feel overall a ULI have more benefits than a Roth.
Thank you, Sienna! life insurance products are all based on risk, so the older you are the more you will pay in insurance costs, so the younger the better. Roths are great for getting a tax free income in retirement, but they are subject to stock market downturns. If you would like me to structure an IUL for you, complete this application and then you can decide if this is something you would want to move forward with. IUL ILLUSTRATION APPLICATION: form.typeform.com/to/SNfW1IBA
So you’re saying put more cash in then the actual death benefit?? Explain the steps while setting it up, how to do it because of the agent is doing it for us. How do we know if we’re gonna do it the proper way? I’m not the traditional way the traditional way.
Watch my video on Evaluating IUL Illustrations. That should help you understand ruclips.net/video/QVAD79cdP5I/видео.html&ab_channel=WealthProtectionLady
What laws do you believe they violate with the traditional IUL?
There is no law that says a life insurance agent needs to structure IULs properly, but my personal opinion is that anything less than the lowest death benefit the IRS will allow is theft because an IUL is not about the death benefit. It's about maximizing your cash accumulation and by structuring an IUL for a big commission for the agent, you are doing the opposite of maximizing the client's cash accumulation and that client's fees will likely eat up most of the gains.
Should be criminal for agents to put their own best interest ahead of their clients
I totally agree!
Isn't the Net death benefit should be greater than the Net cash value or surrender value? If so, isn't it like an investment?
The death benefit would be greater than the cash value and yes, this is an investment account within a life insurance policy. The idea is that you want the lowest death benefit the IRS will allow because an IUL is not about the death benefit. It's about maximizing your cash accumulation.
Thank you for the info .
Can I ask you who are your top 3 iul carriers?
For IUL it would be Securian and Nationwide.
what exactly do you mean by " step it up every year" and why is important to have more money in the cash value? Thank you so much.
An increasing death benefit option is a combination of the cash value plus the initial death benefit and that is how it grows.
can a restructure be done after the policy is already in place?
There are some things you can do after the policy has issued. You can call the carrier and ask them to lower your initial death benefit as much as they can, which is usually 25% per year. You can switch indexes to one that is volatility controlled without a cap and high participation rate.
Great video
Thank you, Akeel!
Are you able to review my existing policy and see if it’s structured correctly? Thanks Paul
Hi, Paul! So sorry to take so long to get to you. Email me at sue@wealthprotectionlady.com and I'll be happy to review it.
Best iul company?
Securian's BGAII with the S&P PRISM 3-year index
Can you structure IUL for my grandchildren in NV
Sure! Complete the following questionnaire and we can make that happen. application.wealthprotectionlady.com/
Ok but the total of (death benefit + cash value) just decreases. What is the effective way to convince your customer of the benefit if they are doing so at the expense of their beneficiaries?
IULs are not about the death benefit. If we didn't have to have the death benefit, we wouldn't. If your customers need life insurance, quote them term but make the IUL have the lowest death benefit the IRS will allow.
@@WealthProtectionLady If you didn't have the death benefit, why even have the product? One seems like they would benefit greater by putting that exact same money into a 401k/IRA/or just a straight up stock account with margin abilities for the loaning portion. Tons of brokerages offer stupid low rates, you don't sell your equities, and I'm not paying you between 7k and 30k in commissions from your examples above. I mean if you took the death benefit out of it, your only saving grace left is "well an IUL doesn't 'lose money' when the market loses money because gains are locked in" yes, but you also are capped at ridiculously low gains of something like 6-8% meaning that the death benefit is the ONLY attractive reason for a life insurance policy over an equities account at a brokerage. Correct me if I am wrong here?
Thank you so much
You're most welcome
Thank you for your help and support. Please may I request your link for a proposal IUL application. Thank you again
Hi, Craig! Complete the following application and we can find a time to talk. application.wealthprotectionlady.com/
My IUL is running into the 8th year now. While I didn’t lower the DB, I max funding it or t least trying to. After I paid off my debts for the first 4 years, I put in more money since. Isn’t it that eventually you are just the risk for that gap between your DB & your CV? And so that when your CV exceeds DB, then you are really owning the policy totally & that fees are all minimized? Please correct me if wrong.
The net amount at risk is the difference between the death benefit and the cash value. It is highest in the early years and decreases as the insured increases in age.
How do you structure it so that cash value and death benefit is passed on to beneficiaries?
Beneficiaries will always receive the remaining death benefit and cash or surrender values remaining in the policy.
Hello Sue. If decided to become your client, how would that work? Please explain, since no number is listed. Thank you.
Complete this questionnaire and we can find a time to talk.
application.wealthprotectionlady.com/
I have an illustration for an IUL for each of my 3 children from Mutual of Omaha. Is there anyway I can have you review 1 of them to make sure it's structured properly?
Sure. Just email them to me at sue@wealthprotectionlady.com
I'm interested in joining
The best thing to do is to complete this questionnaire and then we can find a time to talk about your needs. application.wealthprotectionlady.com/
Could I possibly email you an illustration of my IUL and see if it’s right? I’m 25 and trying to do the right thing for my retirement but I’m getting a funny feeling I may not have done proper research before jumping in! If so let me know it would be a HUGE help!
Sure! Email me at sue@wealthprotectionlady.com
i appreciate all this information. I've only just discovered these and would like to set up 3 of them... one for each of my kids and 1 for myself. not sure how to do it correctly. any advice would be helpful. thank you.
Hi, John! Fill out this application and I will properly structure an IUL for you and your kids. application.wealthprotectionlady.com/
I am trying to learn about IUL structure. My only exposure is to whole LI illustrations in which the CV is always a (growing over time) subset of the policy’s death benefit. Would you explain how this works for IUL, and how it differs from WL? In one of the bucket decompositions you showed here, I saw a CV higher than the DB. Is that because the bucket was showing the initial DB, not the full DB (which would be CV + initial DB)? Thanks for your eduction objective here; even with your patient explanations, I still have questions about the particulars of the structure.
With a properly structured IUL, you want the death benefit to be the lowest possible. That was the initial death benefit plus the cash value which is the increasing death benefit option.
@@WealthProtectionLady Is this analogous to WL in which PUAs are used to purchase more and more total DB over the years? I have seen WL illustrations where the split between base premium and PUA in the payment plan is 9:91 or even 8:92.
ALL IUL's are increasing term policies with a cash value account attached to them... the increasing premiums go up year over year & eventually eat the cash value because you keep paying a fixed amount every year & it's not enough to cover the cost of insurance inside the policy, so they take the amount you're paying & additionally pull from the cash value to help pay for the monthly premiums & then after 25-30 years the policy implodes, leaving the client high & dry with $0.00 & NO INSURANCE. It's a bell curve... #SCAM
That is not the case with the Securian Minnesota Life BGAII because beginning in year 11, they begin reimbursing you for your expenses not just for that year, but it eventually reimburses you for the first 10 years of expenses.
@Wealth Protection Lady not a chance. All IUL's are pure junk. What you're saying is in effect, only buy the Red Corvette's, no other color is good. Now let me tell you about this Red Corvette. This one is special, it's different... etc etc.
Can you please share an actual example of a 3 year point to point crediting strategy vs 1 year point to point, taking into account level premiums for the first 5 years? I'm confused on how the crediting actually works, along with look back periods.
You are credited interest once every 3 years but all 3 years of premiums are credited interest as if all funds were in the policy day one. The 3-year has two participation rates (115% and 190%) and the 1-year participation rates are 105% and 125%. Watch my video IUL on Steroids to understand.
Do you still doing it please let me know I want ti set up one
I am. Complete this application and we can find a time to talk: application.wealthprotectionlady.com/
Thank you so much for the video. I'm learning the different LI options and and the question I have is per your example, if the 45 year old were to surrender his policy at 65 then wouldn't the best plan be the first one? (6 minute chart)? Or do you not get everything once you surrender? I was quoted an IUL policy in which I could take everything out except the initial net death benefit which is 100k. and it never changes so if at 65, my cash value is 400k then my death benefit is 500k and if I surrender, I would get 400k. so is this not the same so he's losing a lot more than he is gaining in cash value? Thanks!
The surrender value is what you would receive if you surrendered the policy; however, if you made a withdrawal of your surrender value and closed your policy, you would pay taxes on any gains. The only way you will not pay taxes is to take a loan.
Just need an agent who has good software that will automatically warn of the an blooming amounts being MEC level!
The non-MEC limit is set from the beginning and will change once interest is credited. It's a number to keep in mind but if you accidentally contribute too much, the carrier will reject your payment.
Hello, I'm Interested in Setting up a IUL in Nevada. A Max Fund IUL for business and Another one for Personal..
Can you refer me to someone that is Trustworthy Here..??
Thanks in advance 😊
Hi, Randall! I am licensed in Nevada. Complete this questionnaire and we can find a time to talk. At the end of the questionnaire, mention that you contacted me through RUclips. application.wealthprotectionlady.com/
But the client gains 140k but his family loses 500k? Why would that make sense
An IUL is NOT about the death benefit. If we didn't have to have that, we wouldn't, but it's the only way to get things like participation rates and being able to make money on the money we loaned ourselves. So, the way the IUL is designed is very important. If the IUL is not designed with the lowest death benefit the IRS will allow and an increasing death benefit option while you're putting in a premium, the agent is basically stealing from their client.