The problem is that agents sometimes rambles and don’t explain it right. She explained it thoroughly w less minimum words.. I’m working on getting my license soon. Good stuff
Out of all the IUL videos explaining these types of policies, this is by far the most elaborate and easy to understand. I was a property amd casualty agent and trust me when I say she is a real agent you can trust. I think that even if you don't make the 100k if you take a policy and use her example you can take a loan out against the policy amd invest the money on an ETF or brik amd mortar then repeat the process and within 2 years you will make 100k plus and apply for the zen policy she talks about and repeat the process once again. UIL or IUL is the way to go.
One of the most orderly and simplest videos to explain IUL’s. I could never have figured out the words to explain to my spouse. You made it easier for both of us to understand!
As an insurance agent, I shy away from IUL's because my knowledge was not that strong. I feel I am a little more knowledgeable after watching this video.
One of the best and yet simplest video on IUL. You have covered everything one would want to and should know about an IUL product with such an ease. Greta job. I have always liked IUL but I am even more confident about recommending IUL to my clients after watching this video. Thank you so much.
So glad I found this video. My husband was thinking about switching from an IUL to an IRA because it didn't seem to be beneficial to us. It was not explained properly to us and a lot of videos bad-mouth IULs instead of explaining how they can work for you. Thanks for your clear explanation!
Thank you for breaking it down. I'm getting ready to write an IUL for a client and will use this method to get the best rate for my client. I'm good with the lower commission. So glad I came across your video.
@@WealthProtectionLady How do I find someone like Carla in my area that is willing to take a lower commission and structure a policy the is best for me?
@@WealthProtectionLady it's not fair. opened one up 13 years ago and they've decreased my cap so I haven't been getting the projections from the original sheet.
@@WealthProtectionLady if you take a loan on your money @ 4-5% and the market is down and you hit the 0% floor for 2 yrs like in 2008 aren’t you losing money at that point for the interest being paid on the loan and the index being @ 0% and depending on how much was borrowed couldn’t that possibly lapse the policy ?
I just want to thank you for the great job you accomplished in presenting this subject in a very simple way. I can say I now know what I want to know. Many agents won’t let you know about their commission part. Thanks again
I have just gotten financially able to start an IUL but have no idea the best companies to use for help? You made it simple when you explained and THANK YOU
Hi, Patricia! If you would like an illustration, complete the form from the following link and we'll get back to you: application.wealthprotectionlady.com/
This video has been by far the best video for explaining the living benefits out of a life insurance policy. I have came across multiple videos from self-called “gurus” on this industry and none of them have explained better than you. Thank you❤
I love how your graph shows the $100K of growth as if 100% of the premium goes to the investment... SIN of omission... also folks... she claims that you must keep this funding up for 12 plus years to see the benefit of cash value growth. I believe the average person cancels or cashes in their policies in that 10 -15 year time frame... plus as usual... if you die while this policy is in-force... the insurance company keeps your cash value... only the face amount less policy loans go to your beneficiaries... her illustration at the 8 minute mark is total fabrication because her poor smuck of a client is paying high premiums to keep this policy in-force... and those policy loans at age 65 and moving forward will cannibalize his policy in a compounded rate of reduction... a ticking time bomb...
WOW!! You are incredible! My husband has been talking to me about this and has been trying to get me on board. I have been a Dave Ramsey follower, but now, i think I'm a Wealth Protection Lady follower. My question is what is my next step? In your video you say "If you know what you're doing".... I don't. Help!!
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 definitely want to watch my video IUL on Steroids.
I was introduced to this several years ago and was not interested and didn’t understood much,,,, put it aside it ,,, someone reached out to me and I decided to give it a go and joined got insured since I have nothing close to this product. I don’t understand the rest of the process but I’m glad I ran into your channel,.,
The problem with IUL the illustration on the reurns are not what agent think they are and the people who put money into them. Most agents use 6.4% and typically returns are half that and surrender charges are very long
The 6.4% you refer to is the maximum illustrated rate which varies by carrier and index. Not all IUL's are created equal. An IUL is all about the index, how it performs, what it guarantees and the loan provisions offered. The index I use (the 3-year 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%. The combined participation rate is 335% and guaranteed at 100%. It is also the lowest cost IUL in the industry. At the end of the day, even a properly structured IUL in an expensive product which could be up to 10 times more expensive than the IUL I offer, will never make money. The problem is that most agents don't want you to know how much it's going to cost you, so they don't attach the charges.
I the last 3 examples the Traditional pays out much more at 2.07mil, 2nd was 1.75 mil, and 3rd plan only paid out 1.29 mil, so I don't understand the logic even though the agent fees is greater....
I’m not an agent, and I like the IUL, however, I wouldn’t use the word “ criminal “ when describing traditional; because depending on the client, they may want the additional $500000 for their heirs, as apposed to an extra $130000 for themselves. Just a thought. Nevertheless, good job 👍🏼 on the video.
This is a great video. I am a new agent would you please make a video showing how to structure an IUL properly. For example do a video of a TransAmerica FFIUL illustration using the myTransware.
Thank you for explaining the iul to me, because I don't know anything about it and I want to put my money into an insurance that will help cover. Let me and my kids when I pass away and give me money. At the same time, when I need it. Thank you for explaining that if you can, please help me. I would gladly appreciate it.
One of the main reasons to get a life insurance policy is to be able to take care of loved ones you leave behind. If this is the goal, doesn't the first option with the highest commision to the agent yield the greatest amount left to your loved ones (cash value + death benefit)? I can see how the 3rd option is the best if your goal is to establish the highest cash value for income at retirement. Since this channel focuses on wealth, I can understand the argument. Am I seeing this correctly?
Hi, Yia! If you want life insurance, buy term. It's cheaper. An IUL is not about the life insurance. It's about maximizing your cash value so you want the lowest death benefit the IRS will allow. This way, you're not paying for expensive life insurance within an IUL.
Thats where a term policy is added. Covers 10X your income incase of an early passing. This IUL structure is solely for retirement. It allows you to create wealth in later years and leave something behind when gone.
I love how your graph shows the $100K of growth as if 100% of the premium goes to the investment... SIN of omission... also folks... she claims that you must keep this funding up for 12 plus years to see the benefit of cash value growth. I believe the average person cancels or cashes in their policies in that 10 -15 year time frame... plus as usual... if you die while this policy is in-force... the insurance company keeps your cash value... only the face amount less policy loans go to your beneficiaries... her illustration at the 8 minute mark is total fabrication because her poor smuck of a client is paying high premiums to keep this policy in-force... and those policy loans at age 65 and moving forward will cannibalize his policy in a compounded rate of reduction... a ticking time bomb...
I should probably redo this video because I wouldn't say that today. An indexed product is all about the index and when I made that video, I did not have access to the S&P PRISM index. Now, I do and because this index is the #1 Best Performing Index in the industry with an average annual return of 22.07% (including par rates), you can build a reasonable cash value in as little as 3 years.
This video was very informative. Thank you 😊. My thoughts are why would an insurance company structure the policy to benefit the customer/client rather than themselves. Most companies are about greed and their bottom line which is their profit margin being greater than anything else. We see that today in every facet, companies are deferring all major cost to the customer/client.
Hi Wealth Protection Lady! Your video was the most stripped down, factual, informative, honest and helpful video on IULs I have found!! I am 31 and my brother is 28. My Mom wants us all to start IULs but we have zero knowledge over this subject and the few brokers I spoke with could not explain to me exactly how these worked. At the end of your video you said that if you wanted a custom IUL illustration then fill out an application - but I cannot find the application page, could you help me with this? Thank you so much! Cole
This is a great video! I’ve been seeing a lot of people bashing on IULs and I understand there may be some issues of concern (just like everything there’s a risk) but how can people pass on these types of benefits. I’d rather have my money grow even just the bare minimum instead of sitting in the bank, getting taxed on it while gaining only a few cents every month.
It depends on if the premium is paid monthly, quarterly, annually, etc.... If the policy hold pays annually, the commission is paid annually. If the premium is paid monthly, the commission is paid monthly.
Do you have examples of how to be careful? What are some red flags we are looking for in an agent? How do we know if the are more for themselves than they are for ourselves?
Very nicely done video, I enjoyed the presentation, and how easily understandable you explained IUL's. You asked what line people would like to invest in, and I would be in the S&P. Looking at the climbs and falls, there is opportunity in those times. IUL line graph is a bit more level, but, it is also partially based on the S&P. It looses some of it's upward momentum because there are a few times where markets didn't show return, so upward options seem to have been useless. Many people don't like the idea of markets loosing money, but, it is in those opportunities that money is made. At the end of your graph, The IUL policy made about half of what the S&P did, for a few years. Looking straight at the numbers, IUL policy posted a higher number. The S&P is more financial power behind it's volatility.
The chart she presents seems fake. If you just look at a chart like VOO you don't see drastic dips like she presented. Life insurance products aren't bought but sold. Investing in good companies is like being part owner of companies. Good companies will continue to distribute profits back to shareholders in either price appreciation or dividends. Having a diversified portfolio will minimize risk. Speculation is assuming price will go up not based on fundamental analysis. If you invest in strong companies with good financials, free cash flow, price/earnings-to-growth ratio, and price-to-book ratio then you could make a prediction that the price will increase. The historical average yearly return of the S&P 500 is 10.05% over the last 20 years, as of the end of April 2023. This assumes dividends are reinvested. Adjusted for inflation, the 20-year average stock market return (including dividends) is 7.335%. Your profit will be taxed at the long-term capital gain rate, which is either 0%, 15% or 20%, depending on your income. Compared to recent returns of 2021 28.71%, 2020 18.40%, or 2019 31.49%, IUL has a lower return rate. Life insurance companies know this and that's how they can suggest safe returns because they give you a lower average and keep the difference. They just want to scare people that investing is scary and you can lose money. If you are unsure and need a plan then talk to a financial advisor instead of life insurance agent.
@@mickleTpickle There's a stragey called dollar cost averaging. You can't really time the tops or the bottoms but if you invest consistently then you will improved returns. There's a saying, it's time in the market not timing the market. In addition if you set up your investments on DRIP,dividend reinvestment plan, you automatically invest when prices are cheaper or higher but in the end it averages out.
@13:00 So the only way to maximize cash accumulation value is to decrease the death benefit? What if the person wants both a higher DB and cash accumulation? To me, it sounds like you can either minimize DB so you maximize cash accumulation or vice versa. If you take the former, then why not just get term life and put the cash into an index fund?
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 benefits that seem too good to be true. It's the difference between what you can do with a life insurance policy that you cannot do with an investment account. So, we want the death benefit to be as low as possible because you pay fees on that. If you want more life insurance, purchase term insurance.
@@WealthProtectionLady makes sense, thank you! If I'm 10 years into my IUL, is it even worth decreasing my $1M level DB to maximize cash accumulation anymore?
Somethings I see that aren’t addressed: cost of insurance as you get older. The client has to plan to pay more in premium as he goes along or it comes out of his cash value. The other thing is risk. This is using insurance as an investment and the risk moves from the insurance company to the client. As along as someone knows these facts about IUL at least he can’t say he wasn’t warned.
IULs can look really good on paper, but it's all about the index and the performance of that index and what it guarantees. The fees on some policies can eat you alive, So many people don't even know what index/es they are invested in.
You can find TP in your illustration. It might be in small print at the bottom of a page, but that is the Target Premium and the agent will get a percentage of that. If you watch my video "Evaluating IUL Illustrations," you will see approximately what the lowest death benefit is for different annual premiums.
Do you sell insurance? what company do you work for? I’m thinking about joining a brokerage that sells for national life insurance group living life benefit.
Hi, Aukai! Yes, I do sell life insurance. I am an independent agent and have access to practically any life insurance carrier out there. If you are a new agent, I would recommend you start out with a company that can train you. I am not a fan of captive agencies, but eventually, you can go out on your own. Good luck!
You want the lowest death benefit the IRS will allow and the increasing death benefit option while you are contributing and switching to the level death benefit option when you stop contributing.
Thank you for the videos they're informative and you give alot of options to fund your retirement. Would you suggest the IUL for someone who's over 50yrs old or who started investing later in life?
Thank you, Kathryn! It takes about 15 years for an IUL to really start to take off because IUL fees are front loaded for the first 10 years. What I tell my clients who are older (I'm 61) is to consider a flexible premium deferred index annuity that is uncapped and has a 120% participation rate, which means...your account would be credited with 120% of the index gain. One of the biggest differences with an annuity is not getting a tax-free income. If you are interested in seeing an illustration for either the IUL or an annuity, just complete this application and we can go from there. form.typeform.com/to/SNfW1IBA
@@WealthProtectionLady your videos are so informative! This question is really for my mom who is retired already and has both a pension and SS, it would be very difficult for me to translate all of this into lol, is there someone you may know or recommend that speaks Spanish to explain about this topic of discussion? I believe she has no kind of life insurance and this worries me. Thanks!!
This is, hands down, the easist to understand, concise and to the point video that i have seen on IUL's that explains it well. Others say the same thing: "that is has to be structured properly", but we, the layperson, don't know what exactly that means. This video shows that that means and illustrations are great. Thank you for this !!!
Hi I have bought three policies and they are not indexed Will you help me to find if they are structured properly. The agent did not lock them even though i asked for 20 yrs I am not sure who to consult
In your 401K Vs IUL income comparison section, Client B with an IUL receives over $3 million in total withdrawals by age 100, and his family receives death benefit of over $3 million as well. I thought that client's withdrawals go to reduce the death benefit so that the beneficiary only receives the net death benefit (minus withdrawals + policy loans, ...) at the end. Are you suggesting that client B and his family (beneficiary) received both the policy's death benefit as well as the account value combined at age 100? If so, why and what death benefit option would you use to structure the policy to achieve this outcome? Your response is appreciated.
You want to have the increasing death benefit option while you are contributing a premium, even though it is a little bit more expensive than the level death benefit option, but the level db option limits how much of your premium can go into the index. While you are on the increasing db option, the beneficiary would receive the death benefit (which is the initial db plus the cash value). When you are on the level db option, the beneficiary receives the death benefit plus the surrender value.
Because it is a life insurance contract, the insurance premium increases annually? and the premium expands as the account grows (in order to remain compliant with IRS rules)? The premium increases as the insured ages? the death benefit may grow, but isn't that because your "savings" grows? It doesn't seem to be as straightforward as this explains it.
The premium is what you are contributing to the policy. The premium is going to earn interest in the selected index which will then grown your cash accumulation. The premium doesn't increase as you age. You may be thinking about the cost of insurance which is annual renewable term and does increase as you age. With the increasing death benefit option, the death benefit grows because the death benefit is your initial death benefit plus your cash value.
Great video!! I really enjoy how you explain things. How is he getting 97,000 for a lifetime?? is that assuming that the interest rate received on his retirement savings (Or cash value) remains the same each year which is about 12% (Which would be almost impossible)?... maybe I'm wrong, could you explain, please?
I'm sorry. I would have to go back and watch my video to know what you are talking about. In any event, I input the information into a software program on the carrier's website and whatever algorithm it uses, I do not know.
Maybe no real reply as she is also providing her own service. But very good point. This is almost always way better than the average 401k, as money the worst that can happen is earn 0% yearly return
So if the IUL is structured to have a larger cash value than the death benefit how does that affect the death benefit payout if I take out a loan larger than the death benefit???
It's not structured for the cash value to be larger than the death benefit per se. At the end of the day, an IUL is not about the death benefit. It's about maximizing your cash accumulation, so we always want the LOWEST death benefit the IRS will allow.
I love how your graph shows the $100K of growth as if 100% of the premium goes to the investment... SIN of omission... also folks... she claims that you must keep this funding up for 12 plus years to see the benefit of cash value growth. I believe the average person cancels or cashes in their policies in that 10 -15 year time frame... plus as usual... if you die while this policy is in-force... the insurance company keeps your cash value... only the face amount less policy loans go to your beneficiaries... her illustration at the 8 minute mark is total fabrication because her poor smuck of a client is paying high premiums to keep this policy in-force... and those policy loans at age 65 and moving forward will cannibalize his policy in a compounded rate of reduction... a ticking time bomb...
Hi! Do you have any videos explaining how an agent can structure an IUL to maximize the cash value for clients? I'm a daughter of a retiree and would love to help others have a stress-free retirement.
I do not, but it is very simple. When you are in the illustration software, just choose Minimum Face (lowest death benefit) and the Increasing Death Benefit option while they are contributing to the IUL and then switch to level. That's it!
Good stuff here and I'm looking into the Kai-Zen financing. I believed in the IUL concept and sold a few of these to clients in their 50's , and some younger, starting @ 9 years ago. For safety, I linked the index to the S&P as an annual Point-to-point, got them good carriers with all 3 ADB's and used an increasing DB on all. I suppose they haven't been in them long enuf since right now the cash-value isn't something to write home about. Disappointing because the market was doing great for a stretch. I'm thinking, going forward, if I can get them to max-fund it would work better short term. Any views on that?
Like your video. I do have a question, next year my daughter turns 18, she gets a lead poisoning settlement at 18, $20.000, and $892.00 a month for 10 years. Right now we live below poverty, I don't want that for my daughter. How can I utilize her $ cash, I don't want 20 grand sitting in a bank account, letting the bank make money. With her getting her own money, we now can afford our own IUL's. I need honest direction, and you sound honest & sincere.
Hi, Kaw! Please fill out this questionnaire and we can find a time to talk. Please mention that we communicated already in the notes at the end. application.wealthprotectionlady.com/
Thanks so much for video! It's great to know that I structured my IUL to give me the most cash, although my increasing death benefit also shows a higher amount at the end compared to the regular structure.
Yes, you can purchase an IUL with a Green Card and you can take a loan to fund your business; however, the only loan available in year one is the fixed loan and you don't want to take that loan because when you do, that loan amount comes out of your policy altogether. In year two, you can take a variable loan (if it is offered by the carrier) and then that loan amount never leaves your policy. It continues to earn interest.
@@WealthProtectionLady Can an IUL be customized with variable floor and cap rates? Example: Set even higher than 2% floor rate at the sacrifice of a lower cap rate?
@@WealthProtectionLady how often do these zero years even happen? And wouldn't the loss be just the administrative costs on a zero year? From what I understand, the CV seems to be largely unaffected by said costs, unless there's something else I'm missing?
You want the lowest death benefit the IRS will allow and the increasing death benefit option while you are contributing and switching to the level death benefit option when you stop contributing.
World Financial Group is a life insurance multi-level marketing organization and Kai-Zen is an IUL product with leverage or premium finance that WFG might have access to sell. I typically do not recommend Kai-Zen because unlike a "regular" IUL, you do not have access to your money until all premium loans are paid and that takes 15 years.
If the IUL is properly structured, you would have access to a percentage of the cash value immediately; however, typically, the only loan available in year one is the fixed or wash loan where that loan amount comes out of your policy altogether. You would want to wait until your 1-year policy anniversary to take a loan where that loan amount would remain in your policy earning interest.
This is only showing one option for permanent insurance and doesn't take into account the history of Cap rate changes and the participation rates for policy
The death benefit will go up and down in relation to your cash value. If you paid premiums above the non-MEC limit, the carrier would reject your payment.
First, make sure to do a lot of research. Before coming to me, people have gone down the IUL rabbit hole for a few months. When you think you are ready to pull the trigger, complete the following questionnaire and we can find a time to talk. application.wealthprotectionlady.com/
Thanks for the video, appreciated. But what I don’t get is that if your money is not based on the index, then why is your return based on the movement of the index? And your Guarantee is not as guaranteed as the agent illustrated in the illustration performance.
You are credited interest based on the performance of the index and there are many many indexes with different participation rates. Some carrier's guarantee the 0% floor and others guarantee up to 2% interest on your money. I always use a volatility control index that is rebalanced at the end of every business and it performs well even if the stock market crashes. There are a lot of variables.
Hi, Alisca! Email me with your annual premium and your initial death benefirt and I will tell you if it is structured properly. sue@wealthprotectionlady.com
You want the lowest death benefit the IRS will allow and the increasing death benefit option while you are contributing and switching to the level death benefit option when you stop contributing.
Congratulations on getting your license! When you are in the software for running illustrations, you want to choose Minimum Face (lowest death benefit) and the Increasing Death Benefit option while they are contributing. That's it!
I got licensed in January and have had many people explain this to me and this is the 1st video I understood. Thank you!!!!
I agree
The problem is that agents sometimes rambles and don’t explain it right. She explained it thoroughly w less minimum words.. I’m working on getting my license soon. Good stuff
You need a license to have this account?
you need a life insurance license to sell these accounts to clients. You do not need a license to have an account
How did you get a license if you didn’t understand what you need a license to sell
Out of all the IUL videos explaining these types of policies, this is by far the most elaborate and easy to understand. I was a property amd casualty agent and trust me when I say she is a real agent you can trust. I think that even if you don't make the 100k if you take a policy and use her example you can take a loan out against the policy amd invest the money on an ETF or brik amd mortar then repeat the process and within 2 years you will make 100k plus and apply for the zen policy she talks about and repeat the process once again. UIL or IUL is the way to go.
Great relieve to know that there is people that teaches well and give hope to the working families ! Thx !!
One of the most orderly and simplest videos to explain IUL’s. I could never have figured out the words to explain to my spouse. You made it easier for both of us to understand!
You're very welcome!
I agree this was the best explanation of IUL iI have seen. I will play this for my wife who has the look of disbelief in her eye.
Where is the best place to start a iul?
@@WealthProtectionLady I'm 54, will this work for me or am I too late
@@fost2uhi. I can be able to help that. I can introduce you to one of my best trainers. :)
As an insurance agent, I shy away from IUL's because my knowledge was not that strong. I feel I am a little more knowledgeable after watching this video.
Thank you for mentioning why Dave Ramsey says what he says about IUL’s.
One of the best and yet simplest video on IUL. You have covered everything one would want to and should know about an IUL product with such an ease. Greta job. I have always liked IUL but I am even more confident about recommending IUL to my clients after watching this video. Thank you so much.
Glad it was helpful!
I came here to say the same thing! I’m excited and more confident about sharing this with my clients now because of this video 😊
So glad I found this video. My husband was thinking about switching from an IUL to an IRA because it didn't seem to be beneficial to us. It was not explained properly to us and a lot of videos bad-mouth IULs instead of explaining how they can work for you. Thanks for your clear explanation!
You explained this perfectly and quickly. No wasted words or graphics
Thank you for breaking it down. I'm getting ready to write an IUL for a client and will use this method to get the best rate for my client. I'm good with the lower commission. So glad I came across your video.
Yay!!! Good for you! You are doing the right thing, Carla!
@@WealthProtectionLady How do I find someone like Carla in my area that is willing to take a lower commission and structure a policy the is best for me?
I can’t believe how much ground you cover in just 15 minutes. Well done!
Thank you, Paul!
@@WealthProtectionLady it's not fair. opened one up 13 years ago and they've decreased my cap so I haven't been getting the projections from the original sheet.
@@WealthProtectionLady if you take a loan on your money @ 4-5% and the market is down and you hit the 0% floor for 2 yrs like in 2008 aren’t you losing money at that point for the interest being paid on the loan and the index being @ 0% and depending on how much was borrowed couldn’t that possibly lapse the policy ?
23 here trying to figure out my Life together. Thank you !!! you explaining make everything so much better into perspective.
I just want to thank you for the great job you accomplished in presenting this subject in a very simple way. I can say I now know what I want to know. Many agents won’t let you know about their commission part. Thanks again
I have just gotten financially able to start an IUL but have no idea the best companies to use for help?
You made it simple when you explained and THANK YOU
Hi, Patricia! If you would like an illustration, complete the form from the following link and we'll get back to you: application.wealthprotectionlady.com/
This video has been by far the best video for explaining the living benefits out of a life insurance policy. I have came across multiple videos from self-called “gurus” on this industry and none of them have explained better than you. Thank you❤
16:38 I am so grateful for this video. It was explained with great examples! A video I needed 20 years ago!
Where did you purchase your IUL from?
@@jennifer3ai Meaning I would have purchased this product if I had known about 20 years ago. I am age 61 now. I shared it with my children.
Grateful to have found your channel at age 27. Thank you for teaching about IULs and making life insurance easy to understand!
I love how your graph shows the $100K of growth as if 100% of the premium goes to the investment... SIN of omission... also folks... she claims that you must keep this funding up for 12 plus years to see the benefit of cash value growth. I believe the average person cancels or cashes in their policies in that 10 -15 year time frame... plus as usual... if you die while this policy is in-force... the insurance company keeps your cash value... only the face amount less policy loans go to your beneficiaries... her illustration at the 8 minute mark is total fabrication because her poor smuck of a client is paying high premiums to keep this policy in-force... and those policy loans at age 65 and moving forward will cannibalize his policy in a compounded rate of reduction... a ticking time bomb...
Sean, you have no idea what you are talking about! My guess is that you were screwed by a bad agent in a bad IUL. Everything in your post is false.
@@WealthProtectionLadyWhat was false in the comment above? What are some sources we can use to verify the assertions are false?
Found your channel and love it! If anyone is wanting more information please seek this lady, she gives good thorough info!
Oh thank you!
WOW!! You are incredible! My husband has been talking to me about this and has been trying to get me on board. I have been a Dave Ramsey follower, but now, i think I'm a Wealth Protection Lady follower. My question is what is my next step? In your video you say "If you know what you're doing".... I don't. Help!!
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 definitely want to watch my video IUL on Steroids.
Simple, concise, clear, and easily understandable. Thank you.
Holy crap, I have been scouring UA-cam for a simple explanation of this. You did a great job, thanks for the info!!!
I was introduced to this several years ago and was not interested and didn’t understood much,,,, put it aside it ,,, someone reached out to me and I decided to give it a go and joined got insured since I have nothing close to this product. I don’t understand the rest of the process but I’m glad I ran into your channel,.,
The problem with IUL the illustration on the reurns are not what agent think they are and the people who put money into them. Most agents use 6.4% and typically returns are half that and surrender charges are very long
The 6.4% you refer to is the maximum illustrated rate which varies by carrier and index. Not all IUL's are created equal. An IUL is all about the index, how it performs, what it guarantees and the loan provisions offered. The index I use (the 3-year 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%. The combined participation rate is 335% and guaranteed at 100%. It is also the lowest cost IUL in the industry. At the end of the day, even a properly structured IUL in an expensive product which could be up to 10 times more expensive than the IUL I offer, will never make money. The problem is that most agents don't want you to know how much it's going to cost you, so they don't attach the charges.
I the last 3 examples the Traditional pays out much more at 2.07mil, 2nd was 1.75 mil, and 3rd plan only paid out 1.29 mil, so I don't understand the logic even though the agent fees is greater....
Maximizing for CASH VALUE, not death benefit.
I’m not an agent, and I like the IUL, however, I wouldn’t use the word “ criminal “ when describing traditional; because depending on the client, they may want the additional $500000 for their heirs, as apposed to an extra $130000 for themselves. Just a thought. Nevertheless, good job 👍🏼 on the video.
What happens if you borrow from cash value and it is way more than the death benefit amount yet never repaid? Is there no death benefit then?
Great Job explaining! As someone who started in the financial services industry 1996, I really enjoyed the amount of info you covered.
I've personally been working with IUL's since the late 90's. Nice job!
Share your experience with us please
@@dolgov84 Are you a consumer OR a licensed professional?
I'm a consumer, can you shed some light on this retirement strategy
Thank you for making IUL crystal clear👍
Just learned about IULs yesterday and had a lot of questions. Your video was incredibly helpful, thank you!
The content of your presentation was great, but in particular, I liked the clarity and the illustrations during the presentation. Thank you.
This is a great video. I am a new agent would you please make a video showing how to structure an IUL properly. For example do a video of a TransAmerica FFIUL illustration using the myTransware.
Hi, Erik! I don't sell TransAmerica. Sorry.
I am 66 yrs old good health is there an IUL program for me . Very interesting. Thank you for your explanations.
I don't normally recommend an IUL for anyone over 65, but it just depends on what you want to accomplish.
I've never heard of IUL so thx for the info. Vanguard also has some good options for retirement
Thank you for explaining the iul to me, because I don't know anything about it and I want to put my money into an insurance that will help cover. Let me and my kids when I pass away and give me money. At the same time, when I need it. Thank you for explaining that if you can, please help me. I would gladly appreciate it.
One of the main reasons to get a life insurance policy is to be able to take care of loved ones you leave behind. If this is the goal, doesn't the first option with the highest commision to the agent yield the greatest amount left to your loved ones (cash value + death benefit)? I can see how the 3rd option is the best if your goal is to establish the highest cash value for income at retirement. Since this channel focuses on wealth, I can understand the argument. Am I seeing this correctly?
Hi, Yia! If you want life insurance, buy term. It's cheaper. An IUL is not about the life insurance. It's about maximizing your cash value so you want the lowest death benefit the IRS will allow. This way, you're not paying for expensive life insurance within an IUL.
Thats where a term policy is added. Covers 10X your income incase of an early passing. This IUL structure is solely for retirement. It allows you to create wealth in later years and leave something behind when gone.
@@WealthProtectionLady thank you for the explanation
This should be viewed by everyone, thank you for all your videos!
You're very welcome!
This is the simplest explanation I've heard of how an IUL works. Thank you greatly!! I finally feel like I understand it.
Please keep in mind, that there are other insurance policies.
I love how your graph shows the $100K of growth as if 100% of the premium goes to the investment... SIN of omission... also folks... she claims that you must keep this funding up for 12 plus years to see the benefit of cash value growth. I believe the average person cancels or cashes in their policies in that 10 -15 year time frame... plus as usual... if you die while this policy is in-force... the insurance company keeps your cash value... only the face amount less policy loans go to your beneficiaries... her illustration at the 8 minute mark is total fabrication because her poor smuck of a client is paying high premiums to keep this policy in-force... and those policy loans at age 65 and moving forward will cannibalize his policy in a compounded rate of reduction... a ticking time bomb...
5:25
Why does it take 12-15 years to build reasonable cash value?
I should probably redo this video because I wouldn't say that today. An indexed product is all about the index and when I made that video, I did not have access to the S&P PRISM index. Now, I do and because this index is the #1 Best Performing Index in the industry with an average annual return of 22.07% (including par rates), you can build a reasonable cash value in as little as 3 years.
One of the most simplest videos on IUL I ever seen. I almost closed my account.. thanks
What a fantastic lesson. You sound like a professor. I love this stuff.
This video was very informative. Thank you 😊. My thoughts are why would an insurance company structure the policy to benefit the customer/client rather than themselves. Most companies are about greed and their bottom line which is their profit margin being greater than anything else. We see that today in every facet, companies are deferring all major cost to the customer/client.
Hi, Orlando! If it didn't benefit the customer, they wouldn't sell it. Life insurance companies make loads of money.
Hi Wealth Protection Lady!
Your video was the most stripped down, factual, informative, honest and helpful video on IULs I have found!!
I am 31 and my brother is 28. My Mom wants us all to start IULs but we have zero knowledge over this subject and the few brokers I spoke with could not explain to me exactly how these worked.
At the end of your video you said that if you wanted a custom IUL illustration then fill out an application - but I cannot find the application page, could you help me with this?
Thank you so much!
Cole
I'm gonna stick with WL. Good video though.
This is a great video! I’ve been seeing a lot of people bashing on IULs and I understand there may be some issues of concern (just like everything there’s a risk) but how can people pass on these types of benefits. I’d rather have my money grow even just the bare minimum instead of sitting in the bank, getting taxed on it while gaining only a few cents every month.
Those are great graph illustrations! Thank you!
Thank you!
I respect the transparency
THANK YOU! THANK YOU! So simple!! I greatly appreciate the open and honest review of all the IUL options!
Thanks for your time, knowledge , and thanks for letting us know...
Thank you for simplifying it to a reasonable level of understanding
Are the commissions YEARLY? As soon as I get a response I will follow you... then watch your video about the CONS. Thanks!
It depends on if the premium is paid monthly, quarterly, annually, etc.... If the policy hold pays annually, the commission is paid annually. If the premium is paid monthly, the commission is paid monthly.
Do you have examples of how to be careful? What are some red flags we are looking for in an agent? How do we know if the are more for themselves than they are for ourselves?
Watch my video on Evaluating IUL Illustrations: ua-cam.com/video/QVAD79cdP5I/v-deo.html&ab_channel=WealthProtectionLady
Very nicely done video, I enjoyed the presentation, and how easily understandable you explained IUL's. You asked what line people would like to invest in, and I would be in the S&P. Looking at the climbs and falls, there is opportunity in those times. IUL line graph is a bit more level, but, it is also partially based on the S&P. It looses some of it's upward momentum because there are a few times where markets didn't show return, so upward options seem to have been useless. Many people don't like the idea of markets loosing money, but, it is in those opportunities that money is made. At the end of your graph, The IUL policy made about half of what the S&P did, for a few years. Looking straight at the numbers, IUL policy posted a higher number. The S&P is more financial power behind it's volatility.
@@harrymichellerobinson2011 people don't look at the math
So you’re saying to simply invest more during the downturns and you’ll come out ahead using the S & P?
@@mickleTpickle that is what previous math has shown, wether it continues is another story. It's not as easy as you say about buying more.
The chart she presents seems fake. If you just look at a chart like VOO you don't see drastic dips like she presented. Life insurance products aren't bought but sold.
Investing in good companies is like being part owner of companies. Good companies will continue to distribute profits back to shareholders in either price appreciation or dividends. Having a diversified portfolio will minimize risk. Speculation is assuming price will go up not based on fundamental analysis. If you invest in strong companies with good financials, free cash flow, price/earnings-to-growth ratio, and price-to-book ratio then you could make a prediction that the price will increase. The historical average yearly return of the S&P 500 is 10.05% over the last 20 years, as of the end of April 2023. This assumes dividends are reinvested. Adjusted for inflation, the 20-year average stock market return (including dividends) is 7.335%. Your profit will be taxed at the long-term capital gain rate, which is either 0%, 15% or 20%, depending on your income. Compared to recent returns of 2021 28.71%, 2020 18.40%, or 2019 31.49%, IUL has a lower return rate. Life insurance companies know this and that's how they can suggest safe returns because they give you a lower average and keep the difference. They just want to scare people that investing is scary and you can lose money. If you are unsure and need a plan then talk to a financial advisor instead of life insurance agent.
@@mickleTpickle There's a stragey called dollar cost averaging. You can't really time the tops or the bottoms but if you invest consistently then you will improved returns. There's a saying, it's time in the market not timing the market. In addition if you set up your investments on DRIP,dividend reinvestment plan, you automatically invest when prices are cheaper or higher but in the end it averages out.
@13:00 So the only way to maximize cash accumulation value is to decrease the death benefit? What if the person wants both a higher DB and cash accumulation? To me, it sounds like you can either minimize DB so you maximize cash accumulation or vice versa. If you take the former, then why not just get term life and put the cash into an index fund?
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 benefits that seem too good to be true. It's the difference between what you can do with a life insurance policy that you cannot do with an investment account. So, we want the death benefit to be as low as possible because you pay fees on that. If you want more life insurance, purchase term insurance.
@@WealthProtectionLady makes sense, thank you! If I'm 10 years into my IUL, is it even worth decreasing my $1M level DB to maximize cash accumulation anymore?
Good tips Sue
Somethings I see that aren’t addressed: cost of insurance as you get older. The client has to plan to pay more in premium as he goes along or it comes out of his cash value. The other thing is risk. This is using insurance as an investment and the risk moves from the insurance company to the client. As along as someone knows these facts about IUL at least he can’t say he wasn’t warned.
IULs can look really good on paper, but it's all about the index and the performance of that index and what it guarantees. The fees on some policies can eat you alive, So many people don't even know what index/es they are invested in.
@@WealthProtectionLady can you roll the funds in your Roth IRA into an IUL? If so, any fees
This was wonderfully done! Thank you!
Where on your contacts can find the amount a commission that the advisor is receiving? And whether it is traditional or structured?
You can find TP in your illustration. It might be in small print at the bottom of a page, but that is the Target Premium and the agent will get a percentage of that. If you watch my video "Evaluating IUL Illustrations," you will see approximately what the lowest death benefit is for different annual premiums.
Do you sell insurance? what company do you work for? I’m thinking about joining a brokerage that sells for national life insurance group living life benefit.
Hi, Aukai! Yes, I do sell life insurance. I am an independent agent and have access to practically any life insurance carrier out there. If you are a new agent, I would recommend you start out with a company that can train you. I am not a fan of captive agencies, but eventually, you can go out on your own. Good luck!
@@WealthProtectionLady how can I contact you ?
@@WealthProtectionLady ..I would to get a IUL ….How can we link up to get one started
I am a licensed financial consultant! I can help you!
What is the 'language' to look for to have it 'properly structured'
You want the lowest death benefit the IRS will allow and the increasing death benefit option while you are contributing and switching to the level death benefit option when you stop contributing.
Thank you for the videos they're informative and you give alot of options to fund your retirement. Would you suggest the IUL for someone who's over 50yrs old or who started investing later in life?
Thank you, Kathryn! It takes about 15 years for an IUL to really start to take off because IUL fees are front loaded for the first 10 years. What I tell my clients who are older (I'm 61) is to consider a flexible premium deferred index annuity that is uncapped and has a 120% participation rate, which means...your account would be credited with 120% of the index gain. One of the biggest differences with an annuity is not getting a tax-free income. If you are interested in seeing an illustration for either the IUL or an annuity, just complete this application and we can go from there.
form.typeform.com/to/SNfW1IBA
@@WealthProtectionLady your videos are so informative! This question is really for my mom who is retired already and has both a pension and SS, it would be very difficult for me to translate all of this into lol, is there someone you may know or recommend that speaks Spanish to explain about this topic of discussion? I believe she has no kind of life insurance and this worries me. Thanks!!
How do I know If my agent is structuring right and that she is not going after her big commission?
Watch my video on how to evaluate IUL illustrations. ua-cam.com/video/QVAD79cdP5I/v-deo.html
Thank you so much. Believe it or not your videos are saving people's lives. Very much appreciated. Clear, precise and straight to the point :)
Thank you Suhaie!
AIG Universal Life the same as IUL?
If it is an indexed universal life, yes.
This is, hands down, the easist to understand, concise and to the point video that i have seen on IUL's that explains it well. Others say the same thing: "that is has to be structured properly", but we, the layperson, don't know what exactly that means. This video shows that that means and illustrations are great. Thank you for this !!!
Hi, Bobby! You are welcome!
Hi
I have bought three policies and they are not indexed
Will you help me to find if they are structured properly. The agent did not lock them even though i asked for 20 yrs
I am not sure who to consult
Hi, Ela! Email me the details at sue@wealthprotectionlady.com
Thank you for this video. Great job on explaining IUL's .
Glad it was helpful!
You actually explained it correctly. As an insurance agent, I thank you.
I have questions…do you have a email contact?
In your 401K Vs IUL income comparison section, Client B with an IUL receives over $3 million in total withdrawals by age 100, and his family receives death benefit of over $3 million as well. I thought that client's withdrawals go to reduce the death benefit so that the beneficiary only receives the net death benefit (minus withdrawals + policy loans, ...) at the end. Are you suggesting that client B and his family (beneficiary) received both the policy's death benefit as well as the account value combined at age 100? If so, why and what death benefit option would you use to structure the policy to achieve this outcome? Your response is appreciated.
You want to have the increasing death benefit option while you are contributing a premium, even though it is a little bit more expensive than the level death benefit option, but the level db option limits how much of your premium can go into the index. While you are on the increasing db option, the beneficiary would receive the death benefit (which is the initial db plus the cash value). When you are on the level db option, the beneficiary receives the death benefit plus the surrender value.
Thanks for explaining IUL! Great job👏🏼👏🏼👏🏼
Because it is a life insurance contract, the insurance premium increases annually? and the premium expands as the account grows (in order to remain compliant with IRS rules)? The premium increases as the insured ages? the death benefit may grow, but isn't that because your "savings" grows? It doesn't seem to be as straightforward as this explains it.
The premium is what you are contributing to the policy. The premium is going to earn interest in the selected index which will then grown your cash accumulation. The premium doesn't increase as you age. You may be thinking about the cost of insurance which is annual renewable term and does increase as you age. With the increasing death benefit option, the death benefit grows because the death benefit is your initial death benefit plus your cash value.
Great video!! I really enjoy how you explain things. How is he getting 97,000 for a lifetime?? is that assuming that the interest rate received on his retirement savings (Or cash value) remains the same each year which is about 12% (Which would be almost impossible)?... maybe I'm wrong, could you explain, please?
I'm sorry. I would have to go back and watch my video to know what you are talking about. In any event, I input the information into a software program on the carrier's website and whatever algorithm it uses, I do not know.
Maybe no real reply as she is also providing her own service. But very good point. This is almost always way better than the average 401k, as money the worst that can happen is earn 0% yearly return
So if the IUL is structured to have a larger cash value than the death benefit how does that affect the death benefit payout if I take out a loan larger than the death benefit???
It's not structured for the cash value to be larger than the death benefit per se. At the end of the day, an IUL is not about the death benefit. It's about maximizing your cash accumulation, so we always want the LOWEST death benefit the IRS will allow.
Thanks for being clear and precise, while getting straight to the point.
I love how your graph shows the $100K of growth as if 100% of the premium goes to the investment... SIN of omission... also folks... she claims that you must keep this funding up for 12 plus years to see the benefit of cash value growth. I believe the average person cancels or cashes in their policies in that 10 -15 year time frame... plus as usual... if you die while this policy is in-force... the insurance company keeps your cash value... only the face amount less policy loans go to your beneficiaries... her illustration at the 8 minute mark is total fabrication because her poor smuck of a client is paying high premiums to keep this policy in-force... and those policy loans at age 65 and moving forward will cannibalize his policy in a compounded rate of reduction... a ticking time bomb...
Hi! Do you have any videos explaining how an agent can structure an IUL to maximize the cash value for clients? I'm a daughter of a retiree and would love to help others have a stress-free retirement.
In other words, do you have any videos breaking this specific part down?
I do not, but it is very simple. When you are in the illustration software, just choose Minimum Face (lowest death benefit) and the Increasing Death Benefit option while they are contributing to the IUL and then switch to level. That's it!
@@WealthProtectionLady Thank you! I will play with it a bit.
Good stuff here and I'm looking into the Kai-Zen financing. I believed in the IUL concept and sold a few of these to clients in their 50's , and some younger, starting @ 9 years ago. For safety, I linked the index to the S&P as an annual Point-to-point, got them good carriers with all 3 ADB's and used an increasing DB on all. I suppose they haven't been in them long enuf since right now the cash-value isn't something to write home about. Disappointing because the market was doing great for a stretch. I'm thinking, going forward, if I can get them to max-fund it would work better short term. Any views on that?
I would go with a volatility control index preferable rebalanced daily as opposed to monthly.
Like your video. I do have a question, next year my daughter turns 18, she gets a lead poisoning settlement at 18, $20.000, and $892.00 a month for 10 years. Right now we live below poverty, I don't want that for my daughter. How can I utilize her $ cash, I don't want 20 grand sitting in a bank account, letting the bank make money. With her getting her own money, we now can afford our own IUL's. I need honest direction, and you sound honest & sincere.
Hi, Kaw! Please fill out this questionnaire and we can find a time to talk. Please mention that we communicated already in the notes at the end. application.wealthprotectionlady.com/
Thank you so much for explaining this in easy to understand terms & for getting right to the point. This was very helpful .
are you looking to purchase an insurance policy ?
@@ghostoferlock No I’m not I’m actually a new agent and I’m trying to learn how IUL’s work.
Might I suggest watching Doug Andrew. He has a lot of videos to watch
@@ghostoferlock I’ll check it out Ty.
@@pattydiaz6210 does your insurance company sell segregated funds ?
Good morning thank you so much for sharing. I am a agent myself you made it easy understanding about the Iul I . Thank you.
Glad it was helpful!
Thanks so much for video! It's great to know that I structured my IUL to give me the most cash, although my increasing death benefit also shows a higher amount at the end compared to the regular structure.
Did you put your down payment more then 20,000 to start at a 500,000.00 policy
A couple of questions:
Can a Green Card holder purchase an IUL? Can a take a loan to fund my business right after I max fund one of those policies?
Yes, you can purchase an IUL with a Green Card and you can take a loan to fund your business; however, the only loan available in year one is the fixed loan and you don't want to take that loan because when you do, that loan amount comes out of your policy altogether. In year two, you can take a variable loan (if it is offered by the carrier) and then that loan amount never leaves your policy. It continues to earn interest.
You still lose money with IUL when the market is down even with a 0% floor rate because you still need to pay the COI and other fees.
Correct; however, not with a 2% floor.
@@WealthProtectionLady Can an IUL be customized with variable floor and cap rates? Example: Set even higher than 2% floor rate at the sacrifice of a lower cap rate?
@@WealthProtectionLady how often do these zero years even happen? And wouldn't the loss be just the administrative costs on a zero year? From what I understand, the CV seems to be largely unaffected by said costs, unless there's something else I'm missing?
Super helpful thanks so much!
How do I structure it to optimize my money
You want the lowest death benefit the IRS will allow and the increasing death benefit option while you are contributing and switching to the level death benefit option when you stop contributing.
Can I get a iul while on social security?
This wa awesome, i just got licensed and this simple explanations adequately sums up everything! Thank you for sharing
I'm a agent and this makes sense. I get lots of questions and was not trained on this policy.
What is your opinion about Kai-Zen vs World financial group. Which is better?
World Financial Group is a life insurance multi-level marketing organization and Kai-Zen is an IUL product with leverage or premium finance that WFG might have access to sell. I typically do not recommend Kai-Zen because unlike a "regular" IUL, you do not have access to your money until all premium loans are paid and that takes 15 years.
@@WealthProtectionLady very helpful. Thank you
Good afternoon I hope that you are doing well today. Are you available for any consultation?
The best thing to do is to complete the questionnaire from the following link, and I'll get back to you. application.wealthprotectionlady.com/
The commission you show at minute 14 to the amount of $7454 is that over a 21 year period?
That commission would be paid up front if the policy is being paid annually. If paid monthly, the commission would be spread out over 12 months.
How much and how long do you have to pay into an IUL before you can borrow from it
If the IUL is properly structured, you would have access to a percentage of the cash value immediately; however, typically, the only loan available in year one is the fixed or wash loan where that loan amount comes out of your policy altogether. You would want to wait until your 1-year policy anniversary to take a loan where that loan amount would remain in your policy earning interest.
This is only showing one option for permanent insurance and doesn't take into account the history of Cap rate changes and the participation rates for policy
Do the client have to pay tax When the cash value higher than the death benefit?
The death benefit will go up and down in relation to your cash value. If you paid premiums above the non-MEC limit, the carrier would reject your payment.
How do I get started with an IUL? I have a 401K plan however I don't know anything about how that plan.
First, make sure to do a lot of research. Before coming to me, people have gone down the IUL rabbit hole for a few months. When you think you are ready to pull the trigger, complete the following questionnaire and we can find a time to talk. application.wealthprotectionlady.com/
Or how do I contact you for more information?
Thanks for the video, appreciated. But what I don’t get is that if your money is not based on the index, then why is your return based on the movement of the index? And your Guarantee is not as guaranteed as the agent illustrated in the illustration performance.
You are credited interest based on the performance of the index and there are many many indexes with different participation rates. Some carrier's guarantee the 0% floor and others guarantee up to 2% interest on your money. I always use a volatility control index that is rebalanced at the end of every business and it performs well even if the stock market crashes. There are a lot of variables.
I like how you break things down in this video.
Glad I found your video, I just git an IUL policy, But I’m not sure if it’s structured right.
Hi, Alisca! Email me with your annual premium and your initial death benefirt and I will tell you if it is structured properly. sue@wealthprotectionlady.com
How do I know if it is structured to optimize their commission ?
What exactly do I look at for this information?
You want the lowest death benefit the IRS will allow and the increasing death benefit option while you are contributing and switching to the level death benefit option when you stop contributing.
Can you make video about how to structure an IUL pleaseee? Just got my license
Congratulations on getting your license! When you are in the software for running illustrations, you want to choose Minimum Face (lowest death benefit) and the Increasing Death Benefit option while they are contributing. That's it!
So I have to get life insurance by my self not from my work place
It's a good idea because when you leave your job, you lose the insurance.