Thank you. I have been around the block a few times now, but I am the first one to admit that I still do not know what I do not know. I will continue to learn and share till the day I die.
So you do not have to pay back the loan you take when borrowing from your life insurance policy. So I get that part, but this is where I'm confused on. If you never pay back the policy loan during your lifetime, is the amount deducted from the death benefit when you pass away and from your beneficiaries to repay the loan? Or are you saying the cash value compounds pay back the loan?
Great question Chue - when you take a loan, the company earmarks the money in your policy to eventually pay off that loan (the money you would have taken as a withdrawal anyway). When the insured passes away, the loan is paid off, but meanwhile the insurance company allows that earmarked money to stay in your policy and earn interest based on your indexing choices!
There are five parties to a policy, many of which are usually the same person but does not have to be: 1. The policy owner (They own and control the policy including all tax benefits) 2. The insured (The person whom the death benefit is based on) (Does not have to be the same as the owner) 3. The beneficiary (the people or entity that received the death benefit upon the death of the insured) 4. The payor (the person(s) or entity that pays the premiums) 5. The applicant (the person or entity applying for the policy) So if someone cannot get insured, they can use their spouse, and then perhaps their children or a business partner.
How do the loans work? Can you make contributions without paying the loan? And say you have a 10k loan but you’re account has 90k and something happens you haven’t paid the previous loan back. Can you take out another loan? And if so what are the stipulations?
Doug Thank You, In a "grandfathered" IUL, if the owner took out loans worth 1-2 million, then down the road put in like you stated here another 2 million how is he putting this amount of money in unless it's a "rollout" as you stated in a prior video? TY
this only applies to you if you had an Indexed Universal Life Policy before TAMRA, TEFRA, AND DEFRA were put into Law. That is the only way you can be grandfatherd in. So for most of us seeing this now we are SOL. For those of us who are new these laws do apply to us. TAMRA, TEFRA, AND DEFRA
My mind is blown by this concept. Thank you this knowledge.
You're welcome!
It would be easy for us to understand if you could use displaying board or PowerPoint with numbers.
Interesting Information
You know this stuff bro!
Thank you. I have been around the block a few times now, but I am the first one to admit that I still do not know what I do not know. I will continue to learn and share till the day I die.
So you do not have to pay back the loan you take when borrowing from your life insurance policy. So I get that part, but this is where I'm confused on. If you never pay back the policy loan during your lifetime, is the amount deducted from the death benefit when you pass away and from your beneficiaries to repay the loan? Or are you saying the cash value compounds pay back the loan?
Great question Chue - when you take a loan, the company earmarks the money in your policy to eventually pay off that loan (the money you would have taken as a withdrawal anyway). When the insured passes away, the loan is paid off, but meanwhile the insurance company allows that earmarked money to stay in your policy and earn interest based on your indexing choices!
Not all do qualify for that IUL right? What if a client is not in good health and older? HOw can they buld their wealth with this IUL then?
There are five parties to a policy, many of which are usually the same person but does not have to be:
1. The policy owner (They own and control the policy including all tax benefits)
2. The insured (The person whom the death benefit is based on) (Does not have to be the same as the owner)
3. The beneficiary (the people or entity that received the death benefit upon the death of the insured)
4. The payor (the person(s) or entity that pays the premiums)
5. The applicant (the person or entity applying for the policy)
So if someone cannot get insured, they can use their spouse, and then perhaps their children or a business partner.
@@missedfortune Thank you Doug! Learning a lot.
How do the loans work? Can you make contributions without paying the loan? And say you have a 10k loan but you’re account has 90k and something happens you haven’t paid the previous loan back. Can you take out another loan? And if so what are the stipulations?
same question
Is there a way to contact you? I’ve got questions not covered by your videos.
Hey there, you can setup a time to speak directly to an IUL Professional we work with here: www.3dimensionalwealth.com/getstarted
Doug Thank You, In a "grandfathered" IUL, if the owner took out loans worth 1-2 million, then down the road put in like you stated here another 2 million how is he putting this amount of money in unless it's a "rollout" as you stated in a prior video? TY
He is basically just paying that original loan of 1 or 2 million.
You are able to pay back any policy loans at any time.
Beautiful! But I don't have 2 million
Then make it
The big question is what happens if the account stops compounding due to a market recession.
That is why in an IUL you have the strategy of "lock in and reset" If you understand this strategy, it will transform you financial future!
@@missedfortune what do you mean lock in and reset ?
this only applies to you if you had an Indexed Universal Life Policy before TAMRA, TEFRA, AND DEFRA were put into Law. That is the only way you can be grandfatherd in. So for most of us seeing this now we are SOL. For those of us who are new these laws do apply to us. TAMRA, TEFRA, AND DEFRA
Please respond to this!
So like we can't do the IUL loan anymore?
Thanks Doug
You are welcome!
If the lender is 3rd party...no tax benefits for paying the loan...sorry.