All the FEES for Cash Value Life Insurance Explained

[@bobby_ewan]

Great break down Matt. Common mistake when a client finds out their policy wasn't set up correctly for max accumulation is they think (or have been told) to just reduce the death benefit. It's not that simple. Costs are already baked into the policy. I've replaced so many of these!

[@george.walsh_]

Other than improving their rate class and lowering the face amount (death benefit), what other options do they really have? As I understand it, the only other way to try and fix/restructure a poorly designed/minimally funded policy (in order for them to try and get back on track and closer to max funding the policy - with the same premium) is to also eventually change the death benefit option from Increasing to Level.

[@jeremiaharyeetey9877]

I’m kinda slow grabbing all these info since I’m new to financial business and figures. Are there elite business books you would recommend for me to learn the basics and gradually build my knowledge up?

[@kriskris5989]

What percentage of supplemental Term Rider or a Term blend would you add compared to the Base insurance to mirigate the risk of Rider fee going up?

[@julianchacon9096]

Great video. Tip: Look into the camera so that we the audience are making eye contact with you. It allows the audience to better connect with you. I believe in this video you may have been looking at a screen above the lens so you could see yourself, or maybe something else. But yea, look into the lens

[@kriskris5989]

I have an Allianz policy with 100k going towards base insurance and 395k going towards supplemental term rider,the agent told me that blending it with max allowable supplemental term rider accelerates cashvalue accumulation and minimum commission for him..if my goal is max cash value..is this still a good option? He designed it with increasing DB and minimum db allowed per IRS limit

[@vangustia]

That seems to be designed correctly.

[@OregonCashFlowPro]

Funny to see him try to make the term rider charges look like a negative thing by showing only that charge without the alternative comparison. Keep in mind the term rider is what reduces the commission to the agent. Sure the cost of term insurance “could be” adjusted by the insurance company, but the full commission designs he does lock you into paying tens of thousands in higher fees throughout the early years of the policy. Notice he doesn’t really explain what determines the expense fee? The vast majority of that is the recouping of the commissions. I have no problem with an agent only doing high commission designs like Decker does. It’s just a different business model than what I like to do. What bothers me is the miseducation around it to hide the facts and mislead clients to avoid that conversation.

[@newpete4082]

Term rider cost increase needs more explanation. Good agents will want to reduce the commission, reduce the cost of the policy and maximize accumulation potential for client. In order to do that we add supplemental term rider lower the commissions but if companies can increase the charges just like Matt is saying then not only client but agent who designed policy has sacrificed for nothing. So good agents need to check with companies to double verify or get clarification on this. Also update this video or make new video on it after clarification.

[@lololol1019]

The more I look into the IUL the more I feel like the Roth IRA better be the guy better choice especially if I can only afford $500/monthly

[@rukiddingmeNJ]

If you’re solving for $500 a month then a Roth may be a better choice. IUL will work best for a high net worth individual with no need for DB.

[@alexmike3145]

Cancel your IUL and stick with growth mutual funds with a 20-30 year track record. They beat IUL’s every time.