You can absolutely take out a loan from your IUL policy and pay it back plus interest and it will not lapse your policy. Depending on how the IUL is structured, the CV amount and the Loan size....etc.
One of the things that David McKnight seems to bring up repeatedly is that IUL can be an effective plan to deal with Long Term Care. I'd be interested to hear your take on that one. Coincidentally, I have a UA-cam video premiering tomorrow on my channel on the Long Term Care issue.
IF you don't use the cash value for retirement income, it can work....not without risk, but it can work. However, once you tap into it for retirement income, the LTC benefit element of the policy is SIGNIFICANTLY reduced
@@LIFE180 That's good to note, because WFG really pushes that IUL's are great ways to get retirement income AND LTC benefits simultaneously with the LTC rider, but they never once in my experience with them mentioned that using the cash value can reduce the LTC benefit.
Your right! IBC isn’t about positive arbitrage. Instead it’s about taking back the banking function in your life. The reason WL works and IUL does not is because WL GUARANTEES that your CV will increase at an increasing rate against a fixed premium payment model. IUL fails to guarantee CV growth AND it fails to guarantee fixed costs! Even if your CV starts out LESS than premium outlay, it will ALWAYS increase with WL!
Thanks Chris. What would you suggest for a baby… if I was to fund 1. with premiums and 2. With lump sum, what would be the alternative way to fund something for my grandchildren of 2 & 3 years old?
There are lots of flexibilities for children policies. That said, there is a wide gap company to company. Regardless, children policies can take lump sums, but typically not as much because you can't add a term rider on them since they are under 18 years old. Reach out to Chris@life180.com and we can talk through everything
Once again....who cares what they do for 1 year.....I'm always talking more long term movements.....isn't that why you buy the policy? For long term solutions? Give it time.
@@LIFE180man we gonna be 30 years down the road and you still gonna be saying give it time. If IUL was so bad for the IUL you sold to your customer why aren’t they suing you for a product that supposedly was to blow up on them?? Why have their policies not blown up. Surely you have old customers who have been in their policies for over 10 years.!
@@TheOpinionSports I 1035'd all but 2 of my customers when I made the transition. Those 2 were no longer insurable and they kept the policy in place. They have underperformed, but also pivoted the use case to more of an estate play....they don't need to use the CV while alive
Also in a normal economy the market as far as assets would not necessarily go down. The reason why people expected the market and asset prices to go down is because of all the debt in the system. Interest rates in the 80s were much higher than they are today but the market didn’t necessarily crash because of it. IUL should still be the place to put some of the money because when the market does go down you won’t lose in the IUL.
@@Seccheus you don’t lose anything when you are contributing to the policy and that is the point of the statement “ you don’t lose” as far as those no longer contributing the cost of insurance is minute compared to what someone losing 20% in a 401k. A 0% year if you have upwards of 500k- 1 million cash value is not gonna kill you cause your cost of insurance at best prob won’t even be 5,000 for the year.
@@TheOpinionSports your CV goes down on a zero year and if your policy is not design the BEST way possible it will greatly affect the CV growth over all.
@@Seccheus not if you are in your contributions years your CV won’t go down in a zero percent year. The only way that will happen is if your cost of insurance exceeds your contributions in which your policy is not designed properly.
Because whole life is not going to get an 11% in a segment like you can from time to time like IUL. Plus there are some IUL’s beating the illustration. Can’t say the same for whole life in the last 10 years. There is upside potential in whole life… Low upside potential.
This was very excellent. I appreciate you for sharing the good, the bad and the ugly.
You can absolutely take out a loan from your IUL policy and pay it back plus interest and it will not lapse your policy.
Depending on how the IUL is structured, the CV amount and the Loan size....etc.
I didn't say you couldn't....
@@LIFE180 so as long as you responsibly take out loans and pay them back plus interest what is the problem?!
How long have you been selling IULs?
@@maxpruger837 I am an educated client I am not an agent.
@@Seccheusor you don’t have to pay it back because the interest you earn on the accumulated value can pay it back for you.
Why did you give up your lic. in the first place?
What are the alternatives to using an IUL as a permanent term ?
You could use GUL. There are many options. Depends on what your goals and objectives are. I would need more specific context.
One of the things that David McKnight seems to bring up repeatedly is that IUL can be an effective plan to deal with Long Term Care. I'd be interested to hear your take on that one. Coincidentally, I have a UA-cam video premiering tomorrow on my channel on the Long Term Care issue.
IF you don't use the cash value for retirement income, it can work....not without risk, but it can work. However, once you tap into it for retirement income, the LTC benefit element of the policy is SIGNIFICANTLY reduced
@@LIFE180 of LTC works the the LIBR works....
@@LIFE180 That's good to note, because WFG really pushes that IUL's are great ways to get retirement income AND LTC benefits simultaneously with the LTC rider, but they never once in my experience with them mentioned that using the cash value can reduce the LTC benefit.
Your right! IBC isn’t about positive arbitrage. Instead it’s about taking back the banking function in your life. The reason WL works and IUL does not is because WL GUARANTEES that your CV will increase at an increasing rate against a fixed premium payment model. IUL fails to guarantee CV growth AND it fails to guarantee fixed costs! Even if your CV starts out LESS than premium outlay, it will ALWAYS increase with WL!
Thanks Chris. What would you suggest for a baby… if I was to fund 1. with premiums and 2. With lump sum, what would be the alternative way to fund something for my grandchildren of 2 & 3 years old?
There are lots of flexibilities for children policies. That said, there is a wide gap company to company. Regardless, children policies can take lump sums, but typically not as much because you can't add a term rider on them since they are under 18 years old.
Reach out to Chris@life180.com and we can talk through everything
I was the one who said cap rates would go up last year when you all said they would not. I called it… should have just listened to me.
Once again....who cares what they do for 1 year.....I'm always talking more long term movements.....isn't that why you buy the policy? For long term solutions?
Give it time.
@@LIFE180man we gonna be 30 years down the road and you still gonna be saying give it time. If IUL was so bad for the IUL you sold to your customer why aren’t they suing you for a product that supposedly was to blow up on them?? Why have their policies not blown up. Surely you have old customers who have been in their policies for over 10 years.!
@@TheOpinionSports I 1035'd all but 2 of my customers when I made the transition. Those 2 were no longer insurable and they kept the policy in place. They have underperformed, but also pivoted the use case to more of an estate play....they don't need to use the CV while alive
Also in a normal economy the market as far as assets would not necessarily go down. The reason why people expected the market and asset prices to go down is because of all the debt in the system. Interest rates in the 80s were much higher than they are today but the market didn’t necessarily crash because of it.
IUL should still be the place to put some of the money because when the market does go down you won’t lose in the IUL.
You lose the cost of insurance, expenses and fees.
@@Seccheus you don’t lose anything when you are contributing to the policy and that is the point of the statement “ you don’t lose” as far as those no longer contributing the cost of insurance is minute compared to what someone losing 20% in a 401k. A 0% year if you have upwards of 500k- 1 million cash value is not gonna kill you cause your cost of insurance at best prob won’t even be 5,000 for the year.
@@TheOpinionSports your CV goes down on a zero year and if your policy is not design the BEST way possible it will greatly affect the CV growth over all.
Depending on the design and year you could lose the policy or have to pay more premium. Especially if you have loans out.
@@Seccheus not if you are in your contributions years your CV won’t go down in a zero percent year. The only way that will happen is if your cost of insurance exceeds your contributions in which your policy is not designed properly.
Whole Life dividends, lowest in 80 years…plenty of upside potential
IULs tailing market performanc while it’s peaking not much upside…
🏆🏆. That's what I am talking about. I don't know why it is so hard for these IUL agents to see it?
Because whole life is not going to get an 11% in a segment like you can from time to time like IUL. Plus there are some IUL’s beating the illustration. Can’t say the same for whole life in the last 10 years. There is upside potential in whole life… Low upside potential.