Thank you so much for this valuable info. We are working on this as we start up an LLC you explanation was flawless and easy to understand. We wish you continued success!
Thank you so much, Steve for not only recognizing but actually saying that regular people want the same thing that corporations get! I will definitely be in contact with you to set my LLC up the right way! Excellent information and perfect explanation!! 🤩
great video, very good explanation. I see less than 80 to 90% even though i told the broker wanted the most in cash value. its obvious something is not right. is their a way to adjust and maybe even switch companies to a more trust worthy company.
11:55 as a sales narrative/point, I was hoping you could hold forth on your use of the word “aggressive” to characterize disparate premium/PUA payment plan splits. I have heard it from other agents, so I have to imagine that it’s common and industry-wide to use this description of 10/90. So…what exactly is aggressive about it? Are there risks in play that are not present with “passive” payments plan splits? Is 100% base premium / 0% PUA the least aggressive? If “aggressive” as used in the LI sector is meant to trigger fear, for me it’s the opposite (maybe it triggers a little greed), in that I >want< to be an aggressive accumulator of CV at lowest cost to me. And of course, I want to take an objective look at risks, if there are additional risks that accompany this aggression in policy structure. Thanks as always for your efforts to educate your clients and prospects!
Thank you for the comment and great questions. - Regarding a low premium design (10/90 split) being aggressive, I'm not sure why someone would refer to it this way. Corporations use this strategy. - It does require additional steps for the agent, such as adding a term rider and MEC-testing the policy with lower dividend assumptions. Still, I wouldn't consider it aggressive or risky. - A MEC risk does occur anytime PUA's are added to a policy consistently. With that said, we've seen more clients run into MEC issues with 40/60 designs than 10/90 designs. However, it usually has to do with term riders being prematurely removed or dividends decreasing. I've included two videos below. - ruclips.net/video/VV12eEbKJao/видео.html - 10/90 split. Will it MEC? - ruclips.net/video/4fDdQSASb0A/видео.html - 10/90 split. How Dividends Really Work? Let me know if this helps and if you have any other questions. Thank you for your comments and support!
Sure. Northwestern does not work with brokers (Only career agents). While we cannot use them, since we choose to remain independent, they have a solid track record of delivering strong performance.
When talking about break even point, do you mean all premium paid into the policy potentially maybe available in cash value or just the annual premium for that year has now started to be available at that point?
Great question. All payments over time. Example: - Annual Payment: $10,000 - Year 5: Total Payments: $50,000. If my cash value is $50,000, that is my "break-even" point.
Hello. Thanks for the very informative topic. Very clear. Q: I was told That upon death of the insured the cash value goes to the company and the beneficiary only gets the actual face Amt less loans. Please educate me more on this. Thanks again
Thank you! I've included a video that describes how the death benefit works and what happens to it when we die. - ruclips.net/video/NaUVV5g9mmw/видео.html Regarding the loans, you are correct. Example below. - $1,000,000 death benefit. - Policy loan of $200,000 taken against Cash Value. - Death Benefit: $800,000 is paid out if we die with the $200,000 loan outstanding.
Good question. I am not sure. If one has U.S. citizenship and spends time in the U.S., it may be possible to obtain a policy with a U.S. insurance company.
We have not heard much about them from any of our customers. If a Whole Life Insurance policy is your preference, I would recommending reviewing options with the some of the Major Mutuals (MassMutual, Guardian, NYL, & Guardian). Thanks for the comment and supporting our channel! :)
When you talk about the policies “break even” point at 4-5 years I still don’t understand. Does that mean the policy is self perpetuating without the need for new money?
Good question! The break-even represents when the cash value is equal to our total payments. Example: - 20k/yr for 5 years = 100k total. - Cash Value = 100k by year 5. - Break-even - Year 5.
Good question! We don't use them as we have not received proof of performance from them. Specifically, whole life policies that have delivered an actual IRR of 4% or greater.
Good question. They are not a "bad" company by any means and we have seen a lot of people express satisfaction who have used them. We don't use them as we have not seen a track record of historical performance, but that does not mean it doesn't exist.
Thanks for the comment! New videos are in the works :) Premiums typically cannot be deducted. However, it is possible to position life insurance policies in a qualified plan creating a tax deduction. If a policy is held in a qualified plan, access to the cash value will be restricted.
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Want to know if your policy is set up for MAXIMUM cash value? Let us show you ➡ bit.ly/LIPolicyCashValue
The answer begins at 4:25
Good, concise explanation.
This and your other videos are so helpful! You've really broken this information down into absorbable pieces! Thank u!
hi Steve, I am in Canada. Do you know a Canadian channel as good as yours please?
Thank you so much for this valuable info. We are working on this as we start up an LLC you explanation was flawless and easy to understand. We wish you continued success!
Thank you! Glad it was helpful!
Thank you so much, Steve for not only recognizing but actually saying that regular people want the same thing that corporations get! I will definitely be in contact with you to set my LLC up the right way! Excellent information and perfect explanation!! 🤩
Thank you! Really apprecaite the kind words! :)
Really clear and concise content @SP, thanks for all the education you continue to give us
great video, very good explanation. I see less than 80 to 90% even though i told the broker wanted the most in cash value. its obvious something is not right. is their a way to adjust and maybe even switch companies to a more trust worthy company.
Thank you Steve! Concise, clear and to the point. I’m a new agent and was blessed to come across your channel.
Can you loan against the policy?
What happens when an insurer has a health condition and WL and term insurance premiums are sky high??
Excellent presentation! Your illustrations makes it easy to follow. Thank you!!
Thank you!
11:55 as a sales narrative/point, I was hoping you could hold forth on your use of the word “aggressive” to characterize disparate premium/PUA payment plan splits. I have heard it from other agents, so I have to imagine that it’s common and industry-wide to use this description of 10/90. So…what exactly is aggressive about it? Are there risks in play that are not present with “passive” payments plan splits? Is 100% base premium / 0% PUA the least aggressive? If “aggressive” as used in the LI sector is meant to trigger fear, for me it’s the opposite (maybe it triggers a little greed), in that I >want< to be an aggressive accumulator of CV at lowest cost to me. And of course, I want to take an objective look at risks, if there are additional risks that accompany this aggression in policy structure. Thanks as always for your efforts to educate your clients and prospects!
Thank you for the comment and great questions.
- Regarding a low premium design (10/90 split) being aggressive, I'm not sure why someone would refer to it this way. Corporations use this strategy.
- It does require additional steps for the agent, such as adding a term rider and MEC-testing the policy with lower dividend assumptions. Still, I wouldn't consider it aggressive or risky.
- A MEC risk does occur anytime PUA's are added to a policy consistently. With that said, we've seen more clients run into MEC issues with 40/60 designs than 10/90 designs. However, it usually has to do with term riders being prematurely removed or dividends decreasing.
I've included two videos below.
- ruclips.net/video/VV12eEbKJao/видео.html - 10/90 split. Will it MEC?
- ruclips.net/video/4fDdQSASb0A/видео.html - 10/90 split. How Dividends Really Work?
Let me know if this helps and if you have any other questions. Thank you for your comments and support!
Did you mention you work with an attorney who can set up TRUST POLICIES??
6:45 why no Northwestern Mutual from your firm?
Sure. Northwestern does not work with brokers (Only career agents). While we cannot use them, since we choose to remain independent, they have a solid track record of delivering strong performance.
Outstanding, and very informative video. Thank you for sharing this priceless information.
When talking about break even point, do you mean all premium paid into the policy potentially maybe available in cash value or just the annual premium for that year has now started to be available at that point?
Great question. All payments over time. Example:
- Annual Payment: $10,000
- Year 5: Total Payments: $50,000. If my cash value is $50,000, that is my "break-even" point.
Thank you! Does anyone know if break even means including dividend? Or just guaranteed rate?
Thank you Steve
Hello. Thanks for the very informative topic. Very clear. Q: I was told
That upon death of the insured the cash value goes to the company and the beneficiary only gets the actual face Amt less loans. Please educate me more on this. Thanks again
Thank you! I've included a video that describes how the death benefit works and what happens to it when we die.
- ruclips.net/video/NaUVV5g9mmw/видео.html
Regarding the loans, you are correct. Example below.
- $1,000,000 death benefit.
- Policy loan of $200,000 taken against Cash Value.
- Death Benefit: $800,000 is paid out if we die with the $200,000 loan outstanding.
Not if you have a cash value rider on your policy
Hi, do you know if it´s possible to get an insurance if i live in Uruguay (SouthAmerica)? Thanks!
Good question. I am not sure. If one has U.S. citizenship and spends time in the U.S., it may be possible to obtain a policy with a U.S. insurance company.
Thank you for the video, very informative.
Any good reviews about
AIG DIRECT/Corebridge Financial
We have not heard much about them from any of our customers. If a Whole Life Insurance policy is your preference, I would recommending reviewing options with the some of the Major Mutuals (MassMutual, Guardian, NYL, & Guardian).
Thanks for the comment and supporting our channel! :)
Master presentation!
Thank you! :)
Do you have a link to the performance study?
Hi Seb, we have this available in our client user package for clients that work with us. Feel free to email us at info@ibcglobalinc.com
When you talk about the policies “break even” point at 4-5 years I still don’t understand. Does that mean the policy is self perpetuating without the need for new money?
Good question! The break-even represents when the cash value is equal to our total payments. Example:
- 20k/yr for 5 years = 100k total.
- Cash Value = 100k by year 5.
- Break-even - Year 5.
Thanks for this
What about Lafayette and F&G??
Good question! We don't use them as we have not received proof of performance from them. Specifically, whole life policies that have delivered an actual IRR of 4% or greater.
Are there any drawbacks worth mentioning for Ohio National as a life insurance company?
Good question. They are not a "bad" company by any means and we have seen a lot of people express satisfaction who have used them. We don't use them as we have not seen a track record of historical performance, but that does not mean it doesn't exist.
Are you familiar with Ameritas? I can convert my term policy to a whole life policy there.
Yes, we are familiar with them.
Hey IBC Global we need new videos. 2022 other things we can do new with a Whole Life Cash Value & Can you deduct your premiums at tax time?
Thanks for the comment! New videos are in the works :)
Premiums typically cannot be deducted. However, it is possible to position life insurance policies in a qualified plan creating a tax deduction. If a policy is held in a qualified plan, access to the cash value will be restricted.
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