On this particular policy, you can actually cut the Per Unit Charge by 70% by doing 100k in ‘base’ death benefit insurance and then the remaining 234k death benefit by utilizing the term rider. Since both the base insurance and the term rider are both based on annual renewable term, your COI is pretty much equal. The COI in the all base 334k policy will equal the COI plus the rider fee in a blended 100k base plus 234k term rider blended policy. Even better, Allianz allows a 10 to 1 split between the ages of 18-50 and a 5 to 1 split outside of those ages. So for a 40 year old you can do a 1.1 million DB with 100k of base and 1 million of term rider for the associated increased MEC space for the same Per Unit Charge and surrender charges as if you were just doing a 100k DB policy. For the higher BB yes your COI will proportionally go up, but you get a lot more DB and MEC space which is a good trade off when you’re say less than 60. Then as the cost of the ART goes up in your later years you can just reduce the DB to the 7702 minimums.
I'm familiar with this carrier. But i was unaware of the Guarantees with the fees you mentioned. Is this listed on their illustration? Or is it located in the policy jacket?
If you allow the company to discount the benefit on the back end, there’s no charge, otherwise it depends on the death benefit, but could be as much as $500 per year.
Very interested in starting a max funded cash generating IUL. What are your thoughts on front loading the account with for example 50 or 100k? Does that have any pros or cons? Thanks.
Hi. Since you can increase/decrease the death benefit in an IUL, are the fees (premium expense fee, admin fees, etc) also adjusted according to the new death benefit
My 403(b) with Vanguard Index fund choices costs total 0.2% plus the expense ratio of the fund (0.02% for institutional index). What is the example policy indexed to? Does that mean its cash value matches the total stock market's value, dollar-for-dollar, tax free?
thanks.. But cleverly shown COI till age 65 only.. What would COI after 75yrs?. that will skyrocket at that time eroding the wealth accumulated ,if any. Also every year 17-20% gone in fees. Imagine that part of the yearly segment to breakeven, market has to go up 25%+.
Are you saying 20% of the premium goes to fees or the actual cash value? It’s less expensive than a 401k if you look at the fees over the life of the program. Less than 1%.
@@JoeC5050 right but that’s not the metric you use for determining the average costs per year. You take the difference between the average gross rate of return and the average net rate of return. That gives you a percentage that’s typically below 1%, over the life of the program.
@@JoeC5050 if the main brunt of those fees fall off after 10 or 15 years then the tax free growth compensates over time. Trust me, the math here is sound. I’ve been studying it for 25 years.
On this particular policy, you can actually cut the Per Unit Charge by 70% by doing 100k in ‘base’ death benefit insurance and then the remaining 234k death benefit by utilizing the term rider. Since both the base insurance and the term rider are both based on annual renewable term, your COI is pretty much equal. The COI in the all base 334k policy will equal the COI plus the rider fee in a blended 100k base plus 234k term rider blended policy. Even better, Allianz allows a 10 to 1 split between the ages of 18-50 and a 5 to 1 split outside of those ages. So for a 40 year old you can do a 1.1 million DB with 100k of base and 1 million of term rider for the associated increased MEC space for the same Per Unit Charge and surrender charges as if you were just doing a 100k DB policy. For the higher BB yes your COI will proportionally go up, but you get a lot more DB and MEC space which is a good trade off when you’re say less than 60. Then as the cost of the ART goes up in your later years you can just reduce the DB to the 7702 minimums.
thats the kind of info i needed. thank you
You’re welcome!
I like how you answered these questions.
Thank you
Thank you
I'm familiar with this carrier. But i was unaware of the Guarantees with the fees you mentioned. Is this listed on their illustration? Or is it located in the policy jacket?
It’s only available with certain indices.
What (if any) cost is generally associated with the rider that allows the death benefit to be used for long-term care?
If you allow the company to discount the benefit on the back end, there’s no charge, otherwise it depends on the death benefit, but could be as much as $500 per year.
What is the difference between the money paid toward a premium and the accumulated value?
The premium is the amount you contribute pre-fees and insurance costs.
Very interested in starting a max funded cash generating IUL. What are your thoughts on front loading the account with for example 50 or 100k? Does that have any pros or cons? Thanks.
Any time you can front-load your policy you have time value of money on your side, you just have to be sure you don’t MEC out your contract.
Hi. Since you can increase/decrease the death benefit in an IUL, are the fees (premium expense fee, admin fees, etc) also adjusted according to the new death benefit
Yes
My 403(b) with Vanguard Index fund choices costs total 0.2% plus the expense ratio of the fund (0.02% for institutional index). What is the example policy indexed to? Does that mean its cash value matches the total stock market's value, dollar-for-dollar, tax free?
The S&P 500 and no. Dividends are not included.
0% loan provision?! How
which carrier is this?
Right. That’s crazy.
thanks.. But cleverly shown COI till age 65 only.. What would COI after 75yrs?. that will skyrocket at that time eroding the wealth accumulated ,if any.
Also every year 17-20% gone in fees. Imagine that part of the yearly segment to breakeven, market has to go up 25%+.
Are you saying 20% of the premium goes to fees or the actual cash value? It’s less expensive than a 401k if you look at the fees over the life of the program. Less than 1%.
@@DavidMcKnightYour chart showed 17.5% (I rounded to 17-20%) of premium amount.
@@JoeC5050 right but that’s not the metric you use for determining the average costs per year. You take the difference between the average gross rate of return and the average net rate of return. That gives you a percentage that’s typically below 1%, over the life of the program.
@@DavidMcKnight If someone takes 20% fees and gives back 5% as return.. I need another 15% just to breakeven for the money invested.
@@JoeC5050 if the main brunt of those fees fall off after 10 or 15 years then the tax free growth compensates over time. Trust me, the math here is sound. I’ve been studying it for 25 years.