Meh. Shouldn't have had the plug at the end of the video, demonstrates bias. So idk. Insurance companies make money no mater what. I've definitely paid enough auto insurance over the course of my life, to a nice new truck. Insurance companies are always going to win. I think maybe with a credible company, IUL would be beneficial. It's truly tough to stay. Comparing types of insurance and the associate risk of no return, IUL is a better option than homeowner insurance (pending on locations).

How did Ramsey allow his name to be tarnished by this liar?

“Don’t buy IULs. They’re bad. Buy term insurance from me. My commissions pay out faster on term.”

How can an IUL wipe out your investment when it has a floor and that floor of 0% The negative amount does not dip into the next year if it goes positive you can never wipe out that account You're not investing into index funds You're linking to them this is absolute misinformation

Great video 📹 please keep going with this channel

Theres alot of bad info here. No it doesnt cost way more than term life insurance its actaully cheaper per unit of insurance and even if it costed a little more than term. term is for well a term. a specific amount of time. iul's are a permanent type of insurance. I dont think its designed to make you rich its basiclly just a high yield savings account with a death benefit and often has a living benefit that you can draw upon if needed.

George, this is wrong on multiple levels. I wanna highlight one misconception that you pointed out, that at death the cash value isn’t received. In some cases, this is true, but very rarely is it the case. Some policy owners choose an “increasing” death benefit option, which does indeed include any accumulated value along with the face amount.

I’m in the insurance and securities business… This guy doesn’t know what he’s talking about. At best it’s a pedestrian/sophomoric grasp of what an IUL actually is. The benefits of an IUL well, used by anyone who’s taking the time to understand what it is, are numerous. Firstly, it is a life insurance product. But it also adds living benefits. In other words, if you get sick or you need money, you can draw from when you need it. Furthermore, only an idiot would elect an IUL that only returns the face value upon the death of the insured. This is why products like Indextra explorer, option B, are so popular. Lastly, on the death of the insured, the entire value of the policy is paid to the beneficiary 100% tax-free. I’m really surprised that such remarkably bad advice would be offered under the banner of Dave Ramsey… Because it violates a fundamental rule of acting as a financial advisor - never, ever, give blanket advice.

I haven’t even made it 2 mins into this shit and I already wanna punch him. He’s trying to convince people that iul’s are bad , he’s low key tryna keep people POOR! Can’t stand people like him

Thanks me later: ### Points Criticized in the Video (Incorrect or Misleading Statements): 1. **High Fees and Commissions**: - **Claim**: IUL agents make high commissions, reducing policyholder returns. - **Correction**: While IUL policies do have fees, they are not always as exorbitant as portrayed. Fee structures vary, and reputable agents disclose these fees upfront. Many financial products involve fees, which is common in the industry, but transparent advisors will ensure these are understood. 2. **Insurance and Investment Conflict**: - **Claim**: IULs combine two functions (insurance and investment) and, in doing so, fail at both. - **Correction**: IUL policies can provide both insurance and a potential for cash value growth. They aren’t intended to replace other investments but serve as a flexible tool combining life coverage with a growth option. Properly managed, they can be beneficial for people needing both elements. 3. **Returns Are Capped Below Market Indexes**: - **Claim**: IUL investments yield lower returns than the indexes they are based on. - **Correction**: IUL policies do not invest directly in the stock market or index funds. Instead, they are *linked* to the performance of indexes like the S&P 500, providing growth potential without full exposure to market volatility. IULs usually apply participation rates (a portion of the index’s return) and caps, meaning the policyholder captures some gains but not the full index return. They also offer a floor rate to protect against losses in down markets. 4. **Increasing Premium Costs**: - **Claim**: As clients age, rising insurance costs can consume premiums and cash value. - **Correction**: IUL policies can be designed with level premiums or modified structures to prevent costs from depleting cash value. With proper planning, IULs can be structured to keep insurance costs manageable over time. 5. **Death Benefit Limitation**: - **Claim**: If there’s accumulated cash value, it doesn’t pass on to beneficiaries; only the death benefit is paid. - **Correction**: Some IUL policies offer options to include cash value in the death benefit, meaning beneficiaries could receive both the death benefit and cash value if that’s structured into the policy. This point is crucial for clients who prioritize passing on all accumulated assets. 6. **Borrowing Cash Value**: - **Claim**: Policyholders must borrow their own cash value with interest. - **Correction**: Borrowing from cash value is a common feature allowing tax-free access to funds, but it’s optional. Policyholders who don’t want to borrow can withdraw directly (though it may impact policy value). The borrowing feature provides flexibility with potential tax advantages, which is beneficial if well-managed. ### Valid Points (Accurate Critiques): 1. **Higher Complexity**: - IUL policies are indeed more complex than term life insurance, which can be confusing. Buyers need to understand the details of fees, caps, and performance rates to avoid misunderstandings. 2. **Alternative to Term Insurance**: - For those seeking simple, affordable life insurance, term insurance is generally more cost-effective. People focused solely on coverage, without interest in cash accumulation, might find term policies more suitable. 3. **Self-Directed Investing**: - For people who are financially savvy and comfortable investing independently, self-directed investments can sometimes yield higher returns, given the absence of insurance-related fees and limitations. 4. **Insurance Agents vs. Investment Advisors**: - Insurance agents may not be the best choice for detailed investment planning. Advisors with specialized investment credentials may be more suitable for clients focusing solely on investment growth. ### Overall Summary: The video offers an overly critical view of IULs, with some misconceptions and exaggerations about fees, costs, and structure. While IULs may not be ideal for everyone, especially those seeking only life coverage, they can be effective for clients interested in a blend of insurance and potential cash growth within a protected structure.

More misinformation from the Ramsey crew

Oh there it is Ramsey. What's a term policy on an 80 year old cost?

oh wow, so much ignorance I am embarrassed for him.

Totally wrong

Lots of wrong statements, should be care full wt u putting out as an expert

I wish it was that good , will cover Book value from time of purchase vs time of total loss - 150% of whatever that difference is

IUL is not Whole Life. Two different types of insurance policies - The Money Max Dude

George do yourself a favor please, stop parroting stuff you think you know about. You are misinformed my brother. I actually have an IUL policy and have experienced the benefits of it. I almost surrendered my policy after listening to you guys and after looking more into it. You guys are not painting the whole picture just to come back and do a pitch so we get your products? Wow common stop it.

He needs to do his homework

I can't believe how stupid these people are in these posts thinking trash value insurance is a good buy.

Brown James Moore Karen Smith Betty

Now if someone totals my beater car and i have liability, do i get enough from insurance to get a new car or will they see i paid $560 for the car

Jesus Knoll

steering this my friend is steering contact the DEPARTMENT OF INSURANCE TO REPORT HIM ASAP

Young Karen Moore Dorothy Clark Steven

Prohaska Islands

If you say Whole life is Cash value + Death benefit. You have no clue what it is. Its liquidity from your home that you can use to borrow from instead of using a bank. Interest goes back in your pocket not the company. Term is more expensive long term and you cant always get coverage ONCE EXPIRES . Cash value policy worst case scenario u always get more money back than u put in. Its a wealth preserving strategy not an investment. Rockefellers used it. Walt Disney used it. Mcdonalds used it.

Why IULs are garbage: 1. Money never enters the market - With an IUL, the money funding the cash value portion of the policy is never actually invested into the market. Instead, the insurer holds your “cash” and pays a return on the annual growth of a specific index. Anyone selling IUL are not required to have a securities lic. 2. Growth potential is capped - While most policies have a “floor” of 0% which prevents your cash value from dipping below what you put into it, your growth potential is capped, too. For example, if your policy limits growth to 10% on the index and that index out-performs that percentage, you’ll still only receive the value of 10% in your account. The insurer keeps the difference. 3. No dividends - Dividends are completely eliminated in an IUL policy. Not having the chance to reinvest any earned dividends, as you could choose to do with an individual investment, means you could miss out on a great deal of money from dollar-cost averaging over time. 4. Fees, fees and more fees - IUL policies are packed with fees and charges that will eat into any cash value accrued. 5. Rising costs - The internal cost of insurance continues to rise as you age, which can limit the amount of money going toward any potential cash value. All universal life is A.R.T (annual renewable term) PLUS: Almost all cash value policies have these “features” built in. • You’ll accumulate NOTHING in cash value for the first few years the policy is in force. • The cash value earns a lower rate of return (often just 2%-4%) than the potential return you could achieve if you put your money into a vehicle such as a Roth IRA in the U.S. • If you borrow from the cash value, you’ll pay it back plus interest. • If you die with the policy in force, beneficiaries receive the death benefit (less any outstanding cash value loan balance) while the insurer keeps any accrued cash value. Unless you have the increasing death benefit option (Option B) the consumer will pay more for that option. The consumer always gets screwed when investing in these policies. The only winners are the agent and the company $$$$ The BS I hear all the time is it has to be "structured properly" I have collected 64 policies in the last year and I haven't I seen one structured properly.

he need to esivcae more in uil

he is very wrong

Kessler Forest

Roberts Manor

Rodriguez Richard Miller Deborah Martinez Sarah

I don't sell or own whole life insurance. Some things to keep in mind: 0. It's not "which one?" but rather "how much of each?" 1. Ramsey team (wisely) recommends you have a cash emergency fund that earns barely anything. Whole life cash value would really be better compared to that. 2. If you get just enough whole life to serve as a tax deferred emergency fund, you still need a lot of term, just not quite as much. You can buy both! 3. Ramsey will hate on the emergency fund idea because it requires borrowing against cash value, and they don't borrow money. That's fine, but I think you can be more nuanced than that. Spending cash gives up interest earned, so it can actually be more expensive than a temporary loan in a liquidity crunch. If cash is earning 4% then the cost of spending it is 4%. If your whole life policy is growing at 4% but loans are 8% then the cost is also 4% (!!). Also, the loan is not callable and has no minimum monthly payment schedule so it's not like any other loan you've heard of. Don't leave it unpaid though! Replenish your emergency fund asap to be ready for another emergency! 4. Since it serves as an emergency fund, you can just roll emergency fund money into it with very low if any out of pocket cost at all. 5. You can do a 7-pay policy so no premiums are due after 7 years, and you won't lose so much access to the money for 3 years like he says here. You'll likely quickly break even on cash plus you'll have a little extra death benefit that an HYSA doesn't provide. All in all, whole life is a reasonable alternative to storing emergency cash. But don't go overweight cash because you'll miss out on growth, just like an HYSA has low returns compared to the stock market! Get as much term insurance as you need to protect your family should you die very early.

Johnson Brian Lopez Larry Taylor Carol

Jackson Karen Thomas Elizabeth Martinez Sharon

Go do some more studies

Very incorrect

Compare whole life to emergency fund, not investments.

it sounded good until at the end he is selling something lol

Matteo Manors

Goodwin Point

Brown Mark Garcia Eric Thomas Gary

You don’t know wtf you’re talking about dude

This dude literally doesn’t know anything about IUL! lol

No true, you don’t know what are you talking about!!!! Oh I see, you promoting other business

WRONG WRONG! So much misinformation in this post, it’s crazy!. Your family can get both ! 250k and the 180k in growth. With term, if you have a 20 year term, and you pay into that for 20 years and you die after those 20 years you do not get sent neither does your family and you lose all the money you put in. I’m not sure why you’re so excited about term, and then when you try to renew that term, you’ll be older it’ll be a lot more expensive, you would need medical exam, etc. People who don’t have a Life insurance license should not go on rant on KZbin trying to explain it to people something they just goggled for likes 🤦🏻‍♂️🤦🏻‍♂️🤦🏻‍♂️🤦🏻‍♂️

Schimmel Loaf

Spinka Burgs

The inaccuracies in this video are a large reason I do not trust this "trusted source"