Indexed Universal Life: The Dangerous Truth About IUL’s for Infinite Banking

[@payloadperformance9706]

i’ve had an IUL for 4 years and i’ve never gone below 7% a single month, highest has been 11.8% it really depends on how it’s structured. a whole life typically can guarantee but at 2-3% which doesn’t even keep up with inflation, so you’re essentially guaranteed to have your money locked away and not make anything. i know because i used to have a whole life, i made ZERO on it and when i switched over to a IUL within the first 3 years i saw money growing with interest better than what i expected.

[@TheMoneyAdvantage]

Thank you for watching! The same goes for both WL and IUL, it depends on how you structure it. The money is not locked away in a whole life policy. If you use the right company and structure the policy properly you will have access to 70-80% of the premium as soon as the first check clears. While we do not use IULs for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@joecascio2073]

And the company has the right to change COI at any time during the contract. THATS RISKY. BARN DOOR CAN BE OPENED.

[@sethw997]

How long do you have to pay into your policy

[@Florida_Life_Insurance_Agent]

And how’s it looking now after the -24% in 2022 in the S&P?

[@tadrod2323]

@@Florida_Life_Insurance_Agent s&p was 600+ points during the 2008/2009 financial crisis even with pandemic it was 2000+, it will go up, you're as a longterm investor, and most IUL has a capped ceiling, not for now but later.

[@joshuafootman1593]

I would encourage you to follow David McKnight who wrote the book power of Zero and helps break down the power of an IUL.

[@jeffblosil749]

Also everyone ends up poor by Curtis Ray.

[@joshuafootman1593]

@@jeffblosil749 I'll check his book out for sure Jeff, also we interviewed David McKnight on Facebook live yesterday. You should check it out on the page of Johnathan Mason PHP SVP . He goes into good detail of IUL in the interview

[@jeffblosil749]

@@joshuafootman1593 you can hit me up on Facebook if you want to continue the discussion. I watched the video.

[@TheMoneyAdvantage]

Anyone who writes about IUL's is writing about what might happen. They have only been around for about 25 years, so no one can make a definitive statement only speculations. Our team has been in the industry since before IUL's. We have seen it all. Experience trumps "Maybe." Insurance is about the transfer of risk. You don't get a deal with insurance companies. If premiums are lower, you are taking on more risk. IUL policyholders are taking on risk, in the hope that everything works out perfectly. Good luck.

[@multimeter2859]

@@joshuafootman1593 isn't PHP a pyramid scheme?

[@Imagine-biz]

Annual Renewable Term cost is only when selecting Option B (Increasing). To control the COI, especially in later years, use Option A (Level) where the COI is fixed the insurance is essentially decreasing term. Also, dividends are not guaranteed... You can't have it both ways. Also, keep in mind that life insurance dividends are a "partial return of a deliberate overcharge".

[@TheMoneyAdvantage]

We are not saying IUL's cannot or won't work, however, people need to understand the risks they are taking. I prefer the safety and liquidity of whole life, and invest outside of my policy in things I know and can control. Having said that our team has and will sell IUL's if it makes sense. Here is a video that I would recommend to anyone considering purchasing an IUL: kzbin.info/www/bejne/rZuWmWqoiNijmq8

[@UnitedFidelity]

@@TheMoneyAdvantage That maybe true that you prefer WL to IUL'S because of their safety and liquidity but it may not be wise to push your preferences onto your clients. Each client is unique and they might not have the same risk tolerance as you. Producing a video like this is doing exactly that. You were basically saying that WL is good and IUL's are bad for infinite banking. Also, there quite a few things that you stated in your video that were incorrect. 1. IUL premiums are flexible not because you can skip a payment or pay nothing at all. They're flexible because a target premium is established when the policy is created (which includes both the premium for the face value of the policy and the amount the client would like to add to their cash accumulation account each month) which doesn't have to be met each month. But the premium amount for the face value must be met every month, minus any grace periods in the policy (which is the for WL) or the policy will lapse. 2. You stated the COI goes up on every policy every year and especially as the policy holder gets closer to reaching 100 yrs old. This is incorrect if the client chooses option B to setup the policy as a diminished term policy. But even if they don't, the policy will never take money from the cash accumulation account to pay for even part of the face value premium. Remember, when an IUL is structured, it is done so by minimizing the death benefit as much as possible so the client can invest more into their cash accumulation account. 3. You stated that an IUL doesn't have a guaranteed death benefit. This is incorrect. Not only can a beneficiary receive the face value of the policy but they also receive the amount that's in the cash accumulation account minus any unpaid loans and/or withdrawals that occurred. Basically, if the client enjoys knowing exactly what all of their monthly expenses are going to be and likes having them be the same...and they also like to be able to do simple math to know exactly how much money will be in their account but they want slightly higher returns than they would get from a money market, then a WL policy is for them (assuming the insurance company is paying the same annual dividend, which dividends from insurance companies are not guaranteed). But if the client would like to or needs to have their cash accumulation grow at a faster rate than a WL policy, they might be better off with an IUL. And let's not forget... mutual insurance companies don't always offer the same guaranteed rate of 3%. Insurance companies can only guarantee a fixed rate that they assume can be reached by their own investments in the market that is greater than the fixed amount plus their costs. If the market is severely recessed or depressed, insurance companies have no choice but to decrease the guaranteed rate of return and that rate was lower than 1% during the Great Depression. IUL'S were paying a guaranteed rate of 3%.

[@TheMoneyAdvantage]

@@UnitedFidelity The point of the video was to highlight the risks not give personal advice. Our team has and will sell IUL's if it makes sense i.e. someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation not infinite banking. With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly why we use them for Infinite Banking. Additionally the guarantees in whole life cannot be lowered on an existing contract, and IULs did not exist during the Great Depression.

[@MrJoe750li]

@@UnitedFidelity all facts bro !! Thank you ! Mic drop

[@UnitedFidelity]

@@TheMoneyAdvantage You were not just pointing out the risks of an IUL, you were specifically stating that WL was good and IUL was dangerous and bad. Or, at least, that's how it comes off to most people who watched it. If this truly wasn't your intention, I would suggest scrapping this video and trying again. I would also suggest a new title for your video as well. You stated that IUL's don't have a guaranteed premium. Not sure what you mean by this. An IUL can be structured with a level death benefit premium. However, when an IUL is properly structured by max funding it, by definition, the accumulation account can be maximum funded within exactly 4 years and 1 day from the date the policy started. Meaning the cash accumulation is considered "paid in full" and no other premiums need to be applied to the account and only the level death benefit premium must be paid each month and that level premium does not change unless the death benefit increases. Now, in a max-funded policy, according to the IRS, the death benefit must always be within 5% of the amount of cash accumulation or otherwise the insured is self-funding their own death benefit if the amount of cash accumulation exceeds or equals the amount of death benefit. Therefore why would you ever want the policy to endow. Endowment only occurs at the end of a WL policy if the insured happens to outlive their policy so instead of the death benefit being paid out at the time of the insured's death, it's paid out at the end of the policy...which can be avoided by structuring the WL policy to end at 121 since no one has ever lived that long. In other words, an IUL's cash value will always be 5% less than the death benefit will ever be until the policy ends or the insured passes away. I will give you this...you were right about IUL's not existing during the Great.Depression. E.F Hutton didn't create the IUL until 1980. However, since their inception, IUL has always had a higher guaranteed rate of return than WL so it's safe to say that had they been around back then, the guaranteed rate would've still been higher. Listen, WL was created as a way for policyholders to be able to pay the same level premium for their "whole life" instead of paying increasing mortality costs associated with annually renewed term insurance. But the deal is with a WL policy is that you overpay the premium (pay more than just the mortality costs) in the beginning of the policy so that the amount being overpayed could be invested by the insurance company (usually in Treasury and Municipal bonds) in order to build cash accumulation that would make up the difference when you underpayed (paid less than the mortality costs) as you got older. WL was never designed to be used for infinite banking during it's inception. But then someone asked "What if I pay a higher premium on my Term insurance so that at age 65 the policy would be considered paid in full and I could stop paying any premiums at all? And if we can accomplish that, why not pay an even higher premium so the policy could be paid up in 20 yrs or even 10 years? This is how 20 yr-pay and 10 yr.-pay policies began. Then, in 1980, along comes E.F. Hutton who asked "What if we could maximize the premium so that the policy could be paid up in 5 yrs. but not so we could maximize the death benefit but instead purchase the lowest amount possible allowed by the I.R.S. and use the rest of the premium as a living benefit instead of a death benefit?" And hence was the beginning of the UL policy. Now, an IUL goes one step further and links the UL to an Index (usually a proprietary one that includes companies in the S&P 500) that historically returns between 7-10% (that is if it's placed in a policy that is uncapped and has participation rates greater than 100%). What happens is the insurance company initially invests the premiums into low yield bonds but then takes the profits from this and invests it in companies within the proprietary Index, which historically yields between 5 and 7.5%. And with the typical participation rates of 145%, the insured historically sees a rate of return of 7-10%. Now according to the Rule of 72, the policy owner would double his/her money every 7 to 10 yrs. Now, one could take a loan against the policy but by doing this, the money in the cash accumulation account of the policy does not get touched. Instead, the carrier fronts them the money while using the policy as collateral while allowing the entire amount of cash accumulation to continue to grow at 7-10%. If you choose to pay the loan back, you can do so at a rate of 4% (the rate equal to the guaranteed rate of return) or if not, the carrier will deduct the amount from the cash accumulation at the time of the insured's death. This is while the actual death benefit is also being paid out. This doesn't happen with WL. With a WL policy, the death benefit IS the cash value and during the policy, loans are deducted from the death benefit so that the original amount can no longer grow at the guaranteed rate of return until the loan is paid back in full. It's like borrowing from your 401K. And the rate of return is usually 3% which means you net about 1%. Whereas an IUL will net between 5 and 7% which dwarfs the returns of WL. Considering these facts, which would you rather have to use for infinite banking? With an IUL that has a cash value of say $1M, the policy owner could borrow up to $100K tax free from the policy every to use for their retirement. I guarantee you won't even come close to that with WL. That said, there are risks with an IUL. If the market was to tank, let's say, for the next 10 years or more...worst case scenario...then your rate of return would be zero but you would be insured against any losses in the market. So then zero is your hero. However, if this was to occur, the IUL would still see a rate of return from the carrier of 4% instead of 2 or 3%... perhaps less...that would be paid as a guarantee over what is guaranteed to pay from WL. Yet some investors don't have the stomach for not knowing exactly how much their investment will return from the start. I don't fault these investors. They usually have spent their lives living on a salaried paycheck and gotten paid the exact same amount on every check and they've budgeted their utilities accordingly so they would pay the same amount every month. They like knowing ahead of time what their income and expenses will be and there is absolutely nothing wrong with that. They would typically be more suited for WL. Banks prefer WL to IUL with good reason. They are investing other people's money so they prefer not to take any risks with their money. Myself, I prefer to achieve the biggest bang for my buck without taking unnecessary risks and losing money. An IUL achieves this.

[@joshuafootman1593]

Yes to maximize the cash value you buy the least amount of death benefit, And max fund your policy. People must be taught how to use IUL

[@TheMoneyAdvantage]

A max funded policy has a better chance of working out, but it could require additional premium later because we have no idea what future results will be. In addition to the fact that a high majority of these or not sold as max funded, they are sold a flexible premium, and the contracts have all kinds of contingencies if things do not go exactly as hoped in the market and/or required by the contract. True story 1: Client had an IUL they put 30K a year into. It had a guaranteed death benefit rider. The problem was that they guarantee required an additional 5K a year in premium, and they did not know that. They lost their guarantees because virtually no one reads the contract including the agents. There is no free lunch in insurance. If you want guarantees you pay more for that, i.e. you transfer the risk to the insurance company, and they charge you more for that. You cannot get the same guarantee for less. True story 2: Client had made 1 late payment, because the post office had an issue and delivered it late. Client calls into the insurance company and finds out 2 1/2 years later that they lost their guarantee due to the payment that did not make it to the company within 10 days of the monthly payment due date. Insurance companies put these types of things into the contracts to shift the risk to the policyholders, and that is the only way the insurance company can make the IUL premium lower. Again there is no free lunch in insurance.

[@vangustia]

Do you know what Net Amount at risk is?

[@vangustia]

That was to money advantage.

[@vangustia]

Internal costs go down as net amount at risk lowers. Whole life people love to scare people.

[@vangustia]

You need to know how to set up an iul. Dividends in a whole life policy is just an annual return of premium.

[@financialownership]

You can take advantage of an increasing death benefit and change it to a level policy making the cost of insurance decrease as you get older. It's about the net amount risk because if your net amount at risk is low the cost of insurance rising as you get older makes little difference. If you are max funding an IUL and you level the policy in the later years you will see your cost of insurance decrease over time. Only part of the story

[@TheMoneyAdvantage]

Thanks for watching! You are describing a very specific design and assuming the policy-owner pays premiums exactly as illustrated and several other nuances, however, in our experience that is not what happens in real life for most. Having said that our team has and will sell IUL's if it makes sense i.e. someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. While we do not use IUL’s for Infinite Banking we never said they cannot work. However, it is important for someone to understand all the risks. I generally prefer the safety and liquidity of my whole life and invest outside of my policy in things that cash flow, and that I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who are focused on accumulation only and don't want to be in control. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly why we use them for Infinite Banking.

[@financialownership]

@@TheMoneyAdvantage I don’t think it’s a good idea to use a rider for a max funded IUL because likelihood of it lapsing extremely low. The fact that the IUL is not guaranteed gives it higher earning potential. Some IULs have a alternative fixed interest of 4% so if your bearish you can use that. With that being said most agents don’t sell it this way be the commission isn’t as good but if your looking for minimum permanent DB whole life makes more sense but even for banking I think IUL designed the right way is still better because guarantees eat away your cash value where in IUL the cost is a lot less. You can even start of with a much lower DB than whole life. And level it later on and even lower the death benefit after the seven pay period if you are concerned about fees and COI

[@joecascio2073]

@@TheMoneyAdvantage I love the way you explained that. I’ve been licensed since 1989. Started with New York Life. Great training. I totally agree with you on the BYOB Policy. I just did one for a client age 28 that wanted to dump in $100,000. Ran it both ways. Whole life with PUA’s and IUL. I keep his insurance in whole life at minimum (265,000) then added term rider of of $3,959.000 to avoid MEC. $104,000 1st year lump. He could access $98,980 of guaranteed cash value 1st year. IUL his guaranteed cash value was in the $60,000 range (accessible) while showed accumulation value up in the $90 thousand range 1st year. A lot of agents believe that the client can access their money from the accumulated value which is incorrect. You can only get your money from the guaranteed cash value. At some point they equal out

[@antoinettewilliams4539]

Whole life is more expensive and the cash value goes back to the company when the owner dies, it doesn't go to the beneficiary

[@leeyost9917]

Not to mention an agent makes more commissions off the whole life but if you are doing unto others as you’d have them do to you that shouldn’t be a reason you’d recommend one over the other and scare people. My husband has over 20 years in the business and I have 10. The reason I came on board is because his long time clients love him and what he’s done for them. Some have cried and thanked him Over and over and that’s what I want out of a “job”! ♥️

[@TheMoneyAdvantage]

I completely disagree. With the way we often design policies, we would earn significantly more selling IUL's. Compensation should not be considered a bad thing. Yes, life insurance agents get compensated. What should matter is if the agent properly designed the policy to meet the clients needs/goals etc.

[@MADE4WORSHIP]

@Lee Yost Us agents make LESS off of WL policies than IULs. The fact is that as a HUGE percentage of agents do not know how to structure IULs and even more importantly is that most CLIENTS don’t follow the agents guidance or simply forget! IULs have to be maintained and for the small percentage of people who are on top of it and OVER-Fund the policy they have a chance to make it work but again it’s convoluted and a lot of things have to work out for it to perform well.

[@free7417]

The cost of insurance decreases in IUL when Cash Value goes up over the years if set up DB as a "Level Option". The whole life's cost doesn't go down. Therefore the opinion in this video is not forms based on a complete view of the product.

[@TheMoneyAdvantage]

Thanks for watching! You are describing a very specific design and assuming the policy-owner pays premiums exactly as illustrated and several other nuances, however, in our experience that is not what happens in real life for most. Having said that our team has and will sell IUL's if it makes sense i.e. someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. While we do not use IUL’s for Infinite Banking we never said they cannot work. However, it is important for someone to understand all the risks. I generally prefer the safety and liquidity of my whole life and invest outside of my policy in things that cash flow, and that I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who are focused on accumulation only and don't want to be in control. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly why we use them for Infinite Banking.

[@joshuafootman1593]

I agree and disagree with you because a bad agent who doesn't educate their client in how to properly structure a IUL will hurt themselves.

[@TheMoneyAdvantage]

IUL's put the risk on the policy holder and Whole Life places the risk on the insurance company. IUL illustrations look great because they are based on projections that often are not realistic. One is the interest projections are compounded rather than actuals. I would guess that you have not sat across from a family who was sold an IUL and it didn’t perform as illustrated and now it will lapse if they don’t put considerably more money in it. I have yet to see one that lasts. Find someone who has an IUL that they purchased 15 or more years ago (Early 2000's). Get an in-force illustration, and compare it to the original illustration that was used to sell it in the first place. If you can find one, odds are the cash value is not close to the original projections and good chance they had to increase their premiums just to keep it in force. Please share if you can find one.

[@jeffblosil749]

@@TheMoneyAdvantage there are some I have seen them. Like I said so many people build plans around insurance needs instead of max funding the account. Option B IUL every time. Max fund it from the beginning and these issues go away. I don't think you completely understand how these policies work.

[@TheMoneyAdvantage]

@@jeffblosil749 , Please do share. We have yet to have someone show us an existing in-force policy illustration over a long period of time that has performed exceptionally well. We do however talk to people all the time that have IUL policies that are about to implode. Bottom line IUL's put the risk on the policyholder, and most don't know the risk they are taking.

[@brucewehner5242]

@@jeffblosil749 Jeff, If max funding causes these issues to go away then why is there not a guaranteed illustration on IUL's that works unless you put more premium in. I think it minimizes the issues but doesn't mean they go away. I do believe we understand how these work. I have sold them in the past. The risk is on the policyholder. The IUL illustrations show uninterrupted compounding growth and indexes have never performed like that in the past. You may counter as many agents I have spoken with have, that WL illustrations have changed over time and I would say yes they have but not on the guaranteed side. Why are IUL illustration 40 or more pages long and WL 15 pages? The IUL's are explaining the risk and exceptions in the contract.

[@JumaaneRay]

@@jeffblosil749 sounds like agents need a better understanding of the max funding with out creating a MEC. Please explain or show how it's done my friend. Because someone just wanting insurance or not able to utilize this as sort of an investment vehicle should probably put their capital elsewhere.

[@earlharden175]

You are purposely misleading people with your wording. I understand writing Wl pays you significantly more than than writing an IUL. However, dividends are not guaranteed in WL and the cost of insurance is significantly more. You did not take the time to explain why the death benefit can fluctuate.

[@TheMoneyAdvantage]

Earl, I completely disagree. With the way we design policies, I would earn significantly more selling IUL's. However, compensation should not be considered a bad thing. Yes, life insurance agents get compensated. What should matter is if the agent properly designed the policy to meet the clients needs/goals etc.

[@earlharden175]

@@TheMoneyAdvantage I've been writing life property and casualty for a little while I don't pretend to know it all. However my current IUl earned 17% this year, the cost of my insurance is 1/4 of my same policy as a whole life policy. My participation rate is 110%. I've never been more excited. I'm using my product for BYOB and over paying my policy loans. My cash value will exceed my death benefit right after year 7. How could I be more advantageous using WL?

[@TheMoneyAdvantage]

​@@earlharden175, I'm not going to try to convince you against your will and for your sake I hope it works out. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY In our experience we have yet to see a policy that works out that way. I would guess that you have not sat across from a family who was sold an IUL that did not perform as illustrated and now it will lapse if they don’t put considerably more money in it. We have yet to see one that lasts. Find someone who has an IUL that they purchased 15 or more years ago (Early 2000’s). Get an in-force illustration, and compare it to the original illustration that was used to sell it in the first place. If you can find one, odds are they had to increase their premiums just to keep it in force. That is what has been our experience when we talk to people who bring us their existing IUL’s. With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. I want life insurance that I know will be there for me, not likely/maybe be there for me. Additionally, I want to know that my cash value (emergency/opportunity fund) will be there for me. In any asset, you can only get 1-2 out of 3 things. Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk to the policyholder. When it comes to my emergency/opportunity fund, I will sacrifice growth for safety and liquidity any day. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured

[@MiklRngr]

Earl is correct in that your video is misleading. His point that WL dividends are NOT guaranteed (certainly NOT at the rate used in the illustration on which the policies are sold). What happens to your WL if Dividends are lowered to the true guaranteed rates? Also, the cost of insurance rates are identical across all platforms. It is all based on Term rates. These Term rates are spread out over the premium period of the policy. 1yr Term is less than 30yr Term. 50yr Term is almost identical to WL. Now, with different policies, you may get additional features over time as well. I was a huge adversary when IUL came out. These policies have significantly matured in the last 15 years. A monte carlo analysis will give you an almost perfect opportunity to achieve with and IUL with significantly greater opportunity for greater cash accumulation (for BOY and SLIRP). When I say significantly, I am talking 100-300 basis points which is HUGE over time. This will not be as true if you are shooting for a 10%+ ROI.

[@andyarteaga2649]

I also have to disagree with you. Most agents are not educated on how to structure these policies correctly, but when they are it can tremendously help someone build wealth. I've done this for many years and unfortunately whole life policies are only good for your client that can only afford 1-200 bucks for month. even Tony Robbins in the book master the money game he calls it the rich man's Roth.

[@TheMoneyAdvantage]

We are not saying that an IUL cannot or won't work. However, there are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Life insurance is not an investment. Our clients prefer the safety and liquidity of whole life, and invest outside of their policy in things that they know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@andyarteaga2649]

@@TheMoneyAdvantage clients that overfund a policy have access to their money. As fast as in their 1st years. Also I wouldn't want to pay a loan on my own money that was mine in the first place. Whole life policies you have loans that you pay interests on. When it's in an index account the loan is washed, therefore you pay no interest on it.

[@TheMoneyAdvantage]

Andy, you absolutely can leverage and get arbitrage in a whole life insurance policy. I have no desire the take on the risks of an IUL when I can get all the safety, liquidity, and control of a whole life insurance policy as my emergency /opportunity fund. All while using it to earn double-digit returns in investments I know and can control. With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. I want life insurance that I know will be there for me, not likely/maybe be there for me. Additionally, I want to know that my cash value (emergency/opportunity fund) will be there for me. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. When it comes to my emergency/opportunity fund, I will sacrifice growth for safety and liquidity any day. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly what I want in an emergency/opportunity fund.

[@renesoulet6507]

Look into becoming a Fiduciary agent who educates clients on all types of insurance. GOOD and BAD POINTS. Then let the client decide which one they think is best for them instead of selling them something because that is all you offer.

[@TheMoneyAdvantage]

Thank you for commenting! We are a team of financial professionals in all areas of finance. Life insurance, and even more specifically, whole life, is one small part of what we do. To be even more specific, we have sold other permanent life insurance products. One 6-7 minute youtube video is not personalized advice nor a recommendation. Many of our team members are fiduciaries, and we have always presented the facts and empowered our clients to make their own choices.

[@mxnieves]

Life Insurance agents aren’t fiduciaries. They have a responsibility to represent the life insurance company and protect that companies interest.

[@joefreeland]

I have a whole life with Ameritas that guarantees 3% but historically preforms over the last 70 years at closer to 5.75% with dividends which they have never missed! Not that IULs are bad but WL 10 pay with min. death benefit is the best way to grow $$$ for retirement and become your own bank, guaranteeing that I will have the funds there! If you have the risk tolerance have both, but start with WL!

[@TheMoneyAdvantage]

Joe, Thank you for watching! Maybe a 10-pay policy from a particular company was the best for you and your unique situation. However, we believe that there is not one right product and product design for everyone. This is a 6-minute video regarding IULs for a particular use (Infinite Banking). The objective of Infinite banking is to maximize safety and liquidity over growth, not to maximize ROI in the policy. Infinite Banking, in addition to providing a death benefit, is a place to store cash in between deals. A savings equivalent, not an investment. While we do not use IULs for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and not wanting to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@MrArrizon90]

Been in the insurance game for 17yrs and till this date I still haven’t seen a “properly structured iul “

[@TheMoneyAdvantage]

Thank you for watching!

[@boredondiez3758]

It's easily done when the agent puts the clients needs over their own.

[@Jharris2real]

Ok now listen, you're correct in some areas but not all. If you have a smart agent who knows how to structure an IUL property then none of this applies.

[@TheMoneyAdvantage]

We are not saying that an IUL cannot or won't work. However, there are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Our clients prefer the safety and liquidity of whole life, and invest in things that they know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and prefer to hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@laural8370]

@@TheMoneyAdvantage Higher earning with higher risk, but, but. Isn’t the IUL has a 0% bottoms to stop the risk?

[@yonatankenzo2513]

@@TheMoneyAdvantage okay look, whole life is cool and all but the returns on a whole life policy are way lower than that of a properly structured IUL, in general IUL's have been performing way better than most strategies (if properly structured). a max funded IUL will absolutely destroy a whole life policy.

[@yonatankenzo2513]

@@laural8370 it does. the only risk in an IUL is the cost of insurance increasing overtime but if its properly structured you will not have to worry about that.

[@TheMoneyAdvantage]

@@yonatankenzo2513 While we do not use IUL’s for Infinite Banking we never said they cannot work. However, it is important for someone to understand all the risks. I generally prefer the safety and liquidity of my whole life and invest outside of my policy in things that cash flow, and that I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who are focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that our team has and will sell IUL's if it makes sense i.e. someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking.

[@CourtneyHill-Digitalcreator]

I am considering an IUL and I always try to look at both sides to getting educated before making a decision. Thanks for this video outlining what could happen.

[@TheMoneyAdvantage]

Glad it was helpful! Wish you the best!

[@RICANBLUEYEZ311]

I can help you with that 🙏

[@richardcaridi1982]

It was an interesting video but I don't know what company only pays 2%. Perhaps she was thinking that some companies will only guarantee that amount but I have a client that was paid 12.25% last year on their policy. Did they all pay that amount, no. But telling people that their interest will only be 2% & their fees 2.5% in misleading. If that were true I would have very many people suing me right now & they are not.

[@Mezcaudill]

This is good information. I started researching IULs after seeing several people on TikTok talk about them very positively. Needless to say they are all agents trying to get more customers so I wanted to get a less rose tinted view of them. The more information the better. I have a lot more research to do but this video helps paint a more realistic picture of what can be expected

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IULs for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@toniserrano2739]

This video does not give you all the info you need so please keep researching it find an agent that actually knows how to build proper IULs

[@noradwaase4653]

Don't listen to her she is not telling the truth.

[@amyle9915]

This video is trash! Richard, speak to wealthy people and see what they leverage.

[@ychongy]

@@TheMoneyAdvantage Every reply is a copy and paste? Why robot?

[@thomasmurphy8809]

The IUL policy table I received gave a $200 monthly (combined) payment, but did not break the $200 into its components: life insurance (cost) and whatever was left over for the Index investment. And, at some point the value goes down whereas the associated table notes say that unless the individual makes additional payment amount in the premium the insurance payout isn't possible.

[@TheMoneyAdvantage]

Thank you for watching and commenting! Sorry to hear that your agent did not explain the product to you. If you would like a policy review, you can book a call with our team here: themoneyadvantage.com/calendar

[@ychongy]

Yea I would like to know more about this too

[@quanghong9337]

If you email me, I can show you the exact break down with cost of insurance on the IUL.

[@richardcaridi1982]

That is possible but in the 15 years that I have sold IULs to clients there isn't one person who got a call from the insurance company telling them to add $$ to the policy. We can go all day with "What ifs" & think of things v=that can go wrong. Or the things that just might go right. Like the client who asked me if she had any money in that policy because she got married & paid to get her husband here & now he wants a divorce & she got scholarship to Cambridge to get her PhD & has no money to get there but thanked me profusely when I told her she had $8,000 & said "I'm glad I listened to you" & I said, so am I because you would have spent all your money on your husband & now be out in the cold.

[@TheOpinionSports]

So in a 401k if the markets are going negative and barely growing your cash value is also losing money. It’s the same thing. Plus when you go to withdraw you will get taxed at whatever your tax rate plus the 12-B1 fees. What your saying applies to a 401k or a mutual fund. If you put money in and the market goes flat or negative or even at 2% your not gaining.

[@TheMoneyAdvantage]

Exactly! We don't want our money in a 401k or mutual fund. We would rather put our money were we have knowledge and control i.e. business and real estate. Not saying everyone should do the same, however we are not interested in putting our money where we have virtually no control.

[@TheOpinionSports]

@@TheMoneyAdvantage you never fully have control of anything, you cant control if someone rents your property. If the property is going un rented then you are losing money. But I get what you are talking about. And if you own a business you are most likely paying taxes on the bonuses that you are paying yourself at the end of the year. If you put that money in an IUL designed policy for business owners you can get those bonuses tax free. Also an IUL is protected from lawsuits and bankruptcy. Not saying that you will go bankrupt but if something were to happen and you were sued for it then there goes the money in your businesses. But I get your point overall.

[@TheMoneyAdvantage]

We use Whole Life for our savings, and invest in cash flowing assets. You are talking about the IUL as though it is an investment. We are not saying that an IUL cannot or wont work. However, there are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. We prefer the safety and liquidity of whole life instead. It has the maximum guarantees, and is the best place we have found for our emergency/opportunity fund. This is a different philosophy than those who don't want to be in control and hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@TheOpinionSports]

@@TheMoneyAdvantage Well if the IUL is tied to the market it is an investment the first 10 years a person may not see the immediate returns but after the first 10 years is where you start to see the benefits. Again if you have an IUL that utilizes the Index Strategy which is the S&P 500 High cap multiplier then you can really see the gains on the back end. But the markets aren't going to go down forever.

[@TheMoneyAdvantage]

We use the cash value of whole life as a place to store cash not an investment. In any asset, you can only maximize 1-2 out of 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk to the policyholder. When it comes to my emergency/opportunity fund, I will sacrifice growth for safety and liquidity any day. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly what we and our clients want in an emergency/opportunity fund. With the certainty of our reserves we are able to swing for the fences in our investments.

[@jonathanratliff4780]

The mutual life insurer for which I have been a career agent does not offer IUL, also forbids us to broker an IUL. If we are found out selling an IUL we could lose our agent contract with the company they are that opposed to it. Now if departments of insurance will have illustrations requirements to be much more clear to the consumer my company said they may consider it but current consumer illustration requirements are not specific enough.

[@TheMoneyAdvantage]

Thanks for sharing!

[@csturzoiu1]

Putting down an IUL in order to sell whole life. Laughable. Nice reading off a whole life sells pitch and I agree with some of the points about IUL’s if the agent designing the pooling is a shark but other than that, look into becoming an IUL agent and life will be better for you and your clients.

[@TheMoneyAdvantage]

We are not saying that an IUL cannot or won't work. However, there are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Our clients prefer the safety and liquidity of whole life, and invest in things that they know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@seannguyen5071]

You are totally right about that!

[@JF-ct2ps]

One key fundamental drawback to IUL as a product is that you don't need any investments license, or any knowledge of investments whatsoever, in order to sell it to clients. It's an objectively terrible product, especially when compared to VUL and Whole Life.

[@JeffTheEntrepreneur]

So true

[@theteamunstoppable2684]

Facts bro!

[@snorgisborg2]

What's the difference between IUL'S and BOLI? Boli seems to be very safe from what I've seen so far. Is it just the same?

[@TheMoneyAdvantage]

Thanks for watching! Bank Owned Life Insurance (BOLI) is a different product not available to the average person. While we do not use IUL's for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IUL's if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL's sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL's do not have guaranteed premium * IUL's do not have guaranteed cash that increases every year all the way to endowment * IUL's do not have guaranteed death benefit all the way to endowment * IUL's do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@Unplugged704]

This is a very good video. And like many that I see in YT, they all (including you) state …”if structured properly.” But not one video shows or illustrate how/what “structured properly” is supposed to be. So..may I ask that you do a continuation video on how to structure IULs properly, with complete illustrations and charts? That would be so helpful and easy to understand. Thank you!

[@TheMoneyAdvantage]

Thanks for watching! At what timestamp in the video do we say "if structured properly?"

[@yonatankenzo2513]

The thing is, the cost of insurance wouldn't matter if the policy is being max funded every single year all the time. you'll have a floor of 0% or even 0.75%, while still max funding you will not lose your cash value since youre over funding the policy and will not affect your growth/cash value.

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IUL’s for Infinite Banking we never said they cannot work. However, it is important for someone to understand all the risks. I generally prefer the safety and liquidity of my whole life and invest outside of my policy in things that cash flow, and that I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who are focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that our team has and will sell IUL's if it makes sense i.e. someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly why we use them for Infinite Banking.

[@3056bigman]

So what do you suggest we put our money in?

[@TheMoneyAdvantage]

We do not give individual or specific advice in a public setting as each person/family is unique and without knowing you and your financial picture we cannot make a recommendation. Having said that we have put together a 7 part series on saving and investing to help you think through this: themoneyadvantage.com/why-the-wealthy-love-cash-savings-part-1/ Furthermore, while we do not use IUL's for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IUL's if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL's sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL's do not have guaranteed premium * IUL's do not have guaranteed cash that increases every year all the way to endowment * IUL's do not have guaranteed death benefit all the way to endowment * IUL's do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@dylanfoster1611]

you are 100% correct! BUT only when an IUL policy is traditionally formed by uninformed or greedy agents. by max funding an IUL policy you actually decrease the cost of insurance so your fees go down. I can do a side by side comparison of a max funded IUL vs a whole life policy and the MFIUL will blow the socks off the whole life when it comes to the Internal rate of return (all the fees associated to that policy) plus the amount of potential income from an MFIUL will also blow the socks off a whole life policy. whole life is great but it can't come close to what a MFIUL can do when structured properly. many clients see an average of a 1% and some even .5% cost of insurance in the Internal rate of return with a MFIUL vs whole life will run 2 to 3%. that is a huge difference in your income, investing opps, etc! whole life is great for those focused mostly on death benefits vs MFIUL is better for those looking for business, growth and self banking (just won't have as high of death benefits, which is where the fees come from).

[@TheMoneyAdvantage]

Thanks for watching! You are assuming a very specific design and assuming the policy-owner pays premiums exactly as illustrated and several other nuances, however, in our experience that is not what happens in real life for most. Having said that our team has and will sell IUL's if it makes sense i.e. someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. While we do not use IUL’s for Infinite Banking we never said they cannot work. However, it is important for someone to understand all the risks. I generally prefer the safety and liquidity of my whole life and invest outside of my policy in things that cash flow, and that I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who are focused on accumulation only and don't want to be in control. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly why we use them for Infinite Banking.

[@stylzgohardvip]

LONG STORY SHAWT .. IM A NEWLY LICENSE AGENT . LONG STORY SHORT U HV TO MAX FUND THOSE IUL’S . AND DEY ALWAYZ PUSHING US TO SELL THAT PRODUCT,, ESPECIALLY ‼️🙏🏾 I TOOK A BREAK FROM THE BUSINESS ‼️🤦🏽‍♀️🤦🏽‍♀️🤦🏽‍♀️ IUL’S ARE A MACHINE AND YOU HAVE TO KEEP PUMPING OVERLY PUMPN MONEY INTO THAT MACHINE , BABY 🤔🙄🤦🏽‍♀️TO SEE TRUE PERFORMANCE// RETURNS ON YOUR MONEY // GROWTH 💅🏽 , AND DATZ IF YOU GOT IT IT LIKE DAT ! YOU MAY DO BETTER SIGNING UP A LIL INFANT OR BABY 2TO3YRS OLD FOR A IUL . HOWEVER STILL “ REMEMBER A IUL IZ STILL A MACHINE AND IT TAKEZ ******M O N E Y *** TO MAKE IT RUN 😎🎬💅🏽 WATCH OUT FOR THE FEES & OTHER MOVING COMPONENTS INSIDE THE IUL🤔🙏🏾

[@missionerasteam2624]

What would you recommend for a 50+ ? I have a death benefit already . I am looking for a long term plan or any suggestion?

[@TheMoneyAdvantage]

Thank you for watching! We cannot provide recommendations or advice via KZbin comments. We need to know your financial picture before we can make recommendations or advise someone. If you would like to meet with our team, you can do so here: themoneyadvantage.com/calendar

[@missionerasteam2624]

@@TheMoneyAdvantage where are you located ?

[@TheMoneyAdvantage]

Thanks for asking! We are in multiple physical locations across the country. We work nationally and conduct our business online via Zoom.

[@26mrudula]

She is right, IUL policy costs will grows as per age. People don’t realize this until they reach 60, 65.

[@TheMoneyAdvantage]

Thank you for watching!

[@fredfoster3345]

I want to do 3 policies on my 3 20 something year old children at 800,000 per child for 10 years and I’m paying off each year for each child and I want borrow in year 3 or 4 what’s your opinion

[@TheMoneyAdvantage]

Fred, thank you for watching! I responded to your other comment, but if you would like to speak with an advisor about your specific situation and what would make sense for you, then you can book a call here: themoneyadvantage.com/calendar.

[@Brandon-vi3pn]

Yes, the cost of insurance goes up but also no it does not because the cost of insurance is the difference in cash value and death benefit and if your cash value is increasing then the gap is smaller so your cost of insurance will actually decrease. Your floor is usually around .75% which will cover the cost of insurance when the market is negative. If you are planning on getting an IUL you better make sure that the agent is trustworthy. IUL's can be nightmares or one of the best products out.. Depends if they were set up correctly or not. Higher the Death Benefit, the less cash value build up, the more the agent gets paid. A lower death benefit means more premium going to cash value. Throw a term with living benefits underneath it and you cant compete.

[@TheMoneyAdvantage]

We are not saying that an IUL cannot or won't work. However, there are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Our clients prefer the safety and liquidity of whole life, and invest in things that they know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and prefer to hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@jmarrerodanez7621]

I got a question.Wich one do you recomend better.as a retirement benefit Whole life insurrance or iul ?

[@TheMoneyAdvantage]

Thank you for watching! We cannot give specific recommendations via KZbin. Each person's situation is unique, and without knowing a person's full financial picture, we cannot give advice.

[@RetirementPlanningEducation]

GREAT video, thank you! I agree with your approach on this...it's not that IUL's CAN'T perform as initially projected, but there are many ways and and reasons in which they can fall far short of expectations (which means the client has to decide to either let it lapse, surrender it or pump in more cash than they thought they'd have to)

[@TheMoneyAdvantage]

Thank you for watching!

[@JJ1Smith]

What about loans? Are WL loan rates guaranteed? I know how loans work for IUL but I do not for WL. I also know thats important when it comes to any policy but definitely infinite banking.

[@TheMoneyAdvantage]

There is no one answer for either WL or IUL, as there are many different companies and even many different features across products within one company. Mostly, there are two types of loans with whole life. Fixed and variable. Fixed loan rate policies would always have the same loan rate, and any policy like this that I have seen has the loan rate set at 8%. Some policies have a variable rate that is set for 1-year periods. I personally have a variable rate loan policy, with current rates set at 5%, and they contractually cannot go higher than 8%. Other factors impact how loans work and some differences between WL and IUL that I will not address in a KZbin comment. The main point of this video is not that IULs cannot work but that IULs are not the correct product for Infinite Banking.

[@JJ1Smith]

@@TheMoneyAdvantage thank you, I like your video and I agree with the points you are making. I was just curios to know how loans work for WL products. Also, regarding your answer to my question, if one were going for infinite banking would a variable make the strategy less advantageous? For example in your policy you referenced if you earned a 6% dividend and were charged 7.5% for the loan would that diminish the value of infinite banking? I like the concept of infinite banking but as you mentioned IUL variations make it too volatile but high interest loans can make it volatile as well right? Or am I missing something?

[@TheMoneyAdvantage]

@@JJ1Smith It is important to understand that the dividend rate declared is not the dividend rate that your individual policy is actually earning. That rate is the overall performance of the company, but each policyholder's actual dividend will be different depending on age, rate, etc. The whole reason for using policy loans is that you are not borrowing your own money, rather, you are using your cash value as collateral. So you are both earning interest on your cash value, and you are also paying interest on the portion that you borrow against in the form of a policy loan. However, you are not resetting the compounding of the interest on your cash value like you would if you were to pay with cash. Read this article, and if you have additional questions book a call with our team to discuss further: themoneyadvantage.com/life-insurance-loans-and-why-we-use-them/

[@berkissalcedo6698]

Thank you Rachel for this valuable information because it helps me clarify before I switch my whole life insurance into a IUL. I will keep my Whole Life Insurance.

[@TheMoneyAdvantage]

Thank you for watching! Glad you found this helpful. We have more information here: themoneyadvantage.com/indexed-universal-life-dangerous-truths-about-iul-risks/ and here: themoneyadvantage.com/todd-langford-indexed-universal-life/

[@rominapastordinero]

wrong solutions, you need to compare also cost between both, the performances from the last 20 years, and then you can take an option

[@Roflmao30000]

So what type of whole life policy do you recommend people buy for life insurance and to build cash value ? And why ?

[@TheMoneyAdvantage]

Thanks for watching! I just want to point out that while we do not use IULs for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. With regards to what type of whole life insurance: We do not use one company, nor do we use one product from a company, nor do we utilize one policy design. The range of policy designs we utilize is rather extensive and dependent on the individual we are working with. We do not believe there is only one right way. What makes sense for you might not make sense for another. Here are a couple articles/podcasts we have done on regarding policy design and companies: 1. themoneyadvantage.com/high-cash-value-long-term-growth/ 2. themoneyadvantage.com/best-life-insurance-companies-privatized-banking/

[@Roflmao30000]

@@TheMoneyAdvantage what type of whole life policy do you recommend I buy? There are like 20 different whole life policies from straight, limited, modified, variable, universal, variable universal?

[@TheMoneyAdvantage]

@@Roflmao30000 We do not give advice via KZbin comments. If you want to book a call with our team to look at your unique situation you can do so here: themoneyadvantage.com/calendar

[@luisnavarro880]

Your guarantee sales pitch is a must because you don’t offer IULs. I offer all services and truth iul is king . 12yrs in industry

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IULs for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. What we have stated are facts. The bottom line is that IULs carry inherent risks that do not exist in Whole Life. Our team has been in the industry since the 80s, and over the years, we have gained a lot of experience dealing with clients sold IULs that have significant issues. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking. ================================================ Why do we mention “guaranteed” so much? From an economics perspective, a guaranteed dollar is worth more than a projected or non-guaranteed dollar. What does the internal rate of return of Whole Life cash values have to do with maximizing economic potential? Very little. The guarantees built into the contract, starting with the death benefit but including cash value and premium guarantees as well, have a macro-economic value that does not show up on an illustration or ledger. There are so few “moving parts” inside a Whole Life Insurance contract that ownership of the contract provides a level of certainty that cannot be obtained in any other way. That certainty, in turn, allows people to make decisions external to life insurance, but with other resources, that they never would have made without Whole Life. This is analogous to driving down a 100-mile stretch of highway. If the road is dark and all around is snow and ice, how aggressively do you drive down the road? The possibility of black ice or snow will limit your behavior. Now, in hindsight, once you have driven the road, you may realize that there was actually no snow or black ice and you could have driven faster safely. But did you actually drive fast or slow? The possibility of problems limited your actions, even though in hindsight it all may have worked out fine. Contrast that with the same 100-mile stretch of road in the daytime in the middle of summer with no traffic. Does the increased certainty allow you to change the way you drive, without fear? In the end, the road may have been identical in both scenarios, but your behavior varied greatly based on the degree of certainty you had before you made the drive.

[@wanglee21]

So why if in your policy your have a fixed fee and cost? How would you lose money than? Also how is that any different if a company changes their policy on fees with any kind of service even Whole life you use with them? In the end its all the same for fees and new charges, it comes to the company that owns it not the type of insurance it self. This is the same as one checking/savings account from one bank to another. Some have fixed while some change every few years. Also If Im not mistaken aren't accounts grandfathered in of the time of opening?

[@TheMoneyAdvantage]

Thanks for watching! Life insurance policies are contracts. Universal life policies are based on annually renewable term insurance which has an increasing cost of insurance, additionally the insurance company can increase the cost of insurance per the contract. Whole life insurance however has a fixed cost of insurance.

[@MrMarkovka11]

Thanks for the info. Would you be willing to show us how you set up your personal WL policy? I think that would clear up a lot of confusion ppl seem to have.

[@TheMoneyAdvantage]

That is a great idea! Here is a review of one of our partners policies that I would recommend: m.kzbin.info/www/bejne/nZnZdohqqb2trZo

[@tannarfrancione]

Thank You for helping me believe in IUL’s more then I did before your video! You did a Great job explaining how valuable IUL’s really are for the everyday family!!

[@TheMoneyAdvantage]

Thank you for watching and sharing your opinion!

[@tannarfrancione]

Just curious, what Early Retirement plan do you recommend to the every day middle class family?

[@TheMoneyAdvantage]

Thank you for asking! We philosophically do not believe in the concept of retirement, but rather time and money freedom: themoneyadvantage.com/retirement-why-you-shouldnt-retire/ Having said that, we do not go into every situation with a pre-packaged recommendation. Each person's goals and situation are unique. We usually spend at least 2-3 meetings with someone before we make any recommendations. While we provide content about products, when working with individuals, we offer a custom-tailored approach that starts with understanding the person's complete financial picture and what they want to accomplish. Only after that do we potentially recommend particular products. That is because, for us, everything starts with principles first (themoneyadvantage.com/abundance-philosophy-principles-beliefs/). Once you have defined your principles, then you can implement strategies. Strategies come and go, but principles never change. Financial tactics and products come after the strategy.

[@christophermunchhof3444]

@@tannarfrancione "Early Retirement plan"? The wording makes my skin crawl.

[@faradpack]

Are you joking? She is basically saying IUL is a Scam

[@tezsouza7334]

True... half of what you’re saying is true. BUT....structuring IUL policy can be created with a no lapse. If you have a good agent an IUL will be properly established. With what you’re describing is only if a client is put into a policy that does not fit them ...it’s all about educating correctly ...you should look into our company we teach about IULs and structure them to where our clients can only benefit 💯.

[@TheMoneyAdvantage]

We are not saying that an IUL cannot or won't work. However, there are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Our clients prefer the safety and liquidity of whole life, and invest in things that they know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@rosemarybeyer8752]

I’d love to talk to you!

[@kuipee09]

What’s your company?

[@jbenjamin06]

this argument only works if you are paying the minimum. Hitting the floor and max funding the policy as you would do in a nelson nash whole life account, it would float and float much better than whole life

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IUL’s for Infinite Banking we never said they cannot work. However, it is important for someone to understand all the risks. You are assuming a very specific design and assuming the policy-owner pays premiums exactly as illustrated and several other nuances, however, in our experience that is not what happens in real life for most. I generally prefer the safety and liquidity of my whole life and invest outside of my policy in things that cash flow, and that I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who are focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that our team has and will sell IUL's if it makes sense i.e. someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly why we use them for Infinite Banking.

[@isd605]

Great content! I have a Government Pension in California (CalPERS). Is it wise to take the lump sum and open an IUL?

[@TheMoneyAdvantage]

Thank you for watching! We cannot advise you in a KZbin comment. If you would like to discuss your unique situation, please book a conversation here: themoneyadvantage.com/calendar

[@tobyreyes3278]

Everyone needs a financial coach to educate them. I know 30 financial coaches that educate for free and we don't take a penny from the client. Agents care about there money Coaches care about helping others 1st!

[@TheMoneyAdvantage]

Are you saying that being compensated for the tremendous value you provide in the world is bad?

[@WandoTheMachine]

I’d love to be connected to this resource

[@JoeC5050]

have you seen any annual statements?.. say 3 year annual statements.... did the COI go up significantly?

[@TheMoneyAdvantage]

Thank you for watching. Yes we see statements all the time. The cost of insurance typically becomes a problem in later years.

[@JoeC5050]

@@TheMoneyAdvantage can u pl make an video by showing those details? (u can mask customer info)

[@jamesvillegas877]

My only concern is why would i want to pay into a so called investment that doesn't pay me?

[@TheMoneyAdvantage]

Thanks for watching! Life insurance is not an investment and should never be referred to as such. This is one of our contentions with many in the industry who promote life insurance as an investment. I generally prefer the safety and liquidity of my whole life and invest outside of my policy in things that cash flow, and that I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who are focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that our team has and will sell IUL's if it makes sense i.e. someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. While we do not use IUL’s for Infinite Banking we never said they cannot work. However, it is important for someone to understand all the risks. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly why we use them for Infinite Banking.

[@Thepersoneverywhere]

As far as I know, the purpose of having a yearly renewable COI is because you want to only pay only the COI of my age. Because a level cost would charge me higher that would take chunk of my premium in the beginning. Compound of interest rule is powerful if we have good contribution in the beginning. And having level DB would help as well. Whole life has guaranteed but COI is way more expensive And give dividends but the percentage is usually not guaranteed. I have a UL when my ex was paying it for 3 years then he stop and I am still covered for a bit. But with WL having high cost it is hard to do stop payment and still get covered. I believe in UL INDEX.

[@TheMoneyAdvantage]

Thanks for watching! Whole life insurance is expensive compared to what? If structured properly after a few years or so you will have more in cash value than you pay in premium. (themoneyadvantage.com/the-cost-of-whole-life-insurance/). While Index funds have growth potential that is not to be confused with compound interest. While we do not use IUL's for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IUL's if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL's sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL's do not have guaranteed premium * IUL's do not have guaranteed cash that increases every year all the way to endowment * IUL's do not have guaranteed death benefit all the way to endowment * IUL's do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@mrzotzot68]

All these concerns are only if you configure your policy incorrectly and if you have a bad agent. Most agents are not trained to process and configure an iul correctly.

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IULs for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks, and the risks do not all disappear if you "configure your policy correctly." We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@ychongy]

So the correct way is and why it isnt the correct way from the start is why its bad 🙄

[@WesternNyBigfoot]

Ok so whonis properly trained on setting up an IUL I need 1

[@TheMoneyAdvantage]

Thank you for watching! An IUL may or may not make sense for you, but we cannot determine that in a KZbin comment. If you would like to speak with us, you can go to themoneyadvantage.com/calendar and book a call with our team.

[@stevethepirate0011]

If you have a mutual company, it seems to me that there is no profit. There is only being overcharged and refunded. What is the benefit of this? Is it a tax benefit of receiving a tax favorable distribution instead of taking a wage at high taxes?

[@TheMoneyAdvantage]

Thank you for watching! Mutual life insurance companies existed long before the IRS and have been profitable for over 170+ years. If there was "only being overcharged and refunded" then that means premium payments are the only money coming into the life insurance company. That is a misconception. Life insurance companies conservatively invest the premium dollars and are highly regulated to protect policyholders. They have been able to pay out death claims, earn a profit, pay the guaranteed interest, and have consecutively paid out non-guaranteed dividends for well over 100+ years consecutively. Here are a couple articles related to the financial soundness of mutual insurance companies: 1) themoneyadvantage.com/how-safe-are-life-insurance-companies/ 2) themoneyadvantage.com/life-insurance-company-ratings-why-they-matter-right-now/ Here is the question to ask: If you have more cash value than the total premiums you’ve paid is there really a cost? A properly designed whole life policy can achieve that breakeven point in a relatively short period of time, with continued uninterrupted compound growth. themoneyadvantage.com/the-cost-of-whole-life-insurance-if-you-get-more-money-out-than-you-put-in-there-is-zero-cost/

[@joshuafootman1593]

Also are you familiar with arbitrage? When utilizing a IUL

[@jeffblosil749]

@@TheMoneyAdvantage that didn't answer the question about arbitrage.

[@TheMoneyAdvantage]

@@jeffblosil749 ,Yes we understand arbitrage. Leverage MAY enhance growth. We do not personally buy insurance (the transfer of risk) on a MAYBE. Anyone using an IUL is taking on more risk in the hopes that everything works out perfectly. Our experience is that this does not work out for almost anyone who buys an IUL.

[@brucewehner5242]

@@jeffblosil749 Jeff, you use arbitrage and I say leveraging the cash value for external returns. We are speaking about the same thing.

[@traefauntleroy2093]

She's Clueless

[@TheMoneyAdvantage]

Jeff, you absolutely can leverage and get arbitrage in a whole life insurance policy. I have no desire the take on the risks of an IUL when I can get all the safety, liquidity, and control of a whole life insurance policy as my emergency /opportunity fund. All while using it to earn double-digit returns in investments I know and can control.

[@bethanyrose2375]

It sounds like you either don’t have a full understanding or education on how to structure IULs or you have only seen poorly structured IULs or both. I would love to sit with you on a call and address every concern you brought up in this video and any thing else you could come up with. Let me know! It really is a fantastic tool. I am continually being delighted by the ways an IUL can be utilized.

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IULs for Infinite Banking, we never said they could not work. The bottom line is that IULs carry inherent risks that do not exist in Whole Life, and therefore it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. IBC is a different philosophy than those focused on accumulation only and not wanting to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, NOT Infinite Banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@azen2004]

Just a thought: if you have an indexed universal life policy and worry of the risk of no cash growth to have or offset cost, what do you think your other portfolios look like? With an IUL, you capture the gains and take no loss. Has anyone seen the market give a zero to negative return for a straight 30 years? Example: at 35 years old, you buy a 30 year term, and invest. You’re 65 years old and ready to retire. Your 30 year term policy has expired. At 65 years old, you no longer have life insurance protection and it is very expensive to get something new IF you qualify, and your investments have also tanked due to the market. So, no protection and no money.

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IULs for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@Googlishful]

You nailed it; the TRUTH on the IUL's ... I'm an agent and have lots of suspicion on how these are designed and sold. We should talk at some point! Thanks.

[@TheMoneyAdvantage]

Thank you for watching

[@jadeviper4]

Can’t you just have an IUL and a whole life insurance at the same time?

[@TheMoneyAdvantage]

Thanks for watching! That is a bit like asking can you buy an apple and an orange at the same time. The answer is yes, but they are not the same thing. While we do not use IUL's for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IUL's if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL's sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL's do not have guaranteed premium * IUL's do not have guaranteed cash that increases every year all the way to endowment * IUL's do not have guaranteed death benefit all the way to endowment * IUL's do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@ajaybavle]

Can you please clarify that in a WL Policy, who gets the accumulated cash value in event of the insured’s death?

[@TheMoneyAdvantage]

Thank you for watching! The CV in a whole life policy is the portion of the death benefit that you can use and/or would be given to you if you surrender the policy early. In Whole life insurance, the cash value is a part of your death benefit, not a separate account. Whole life insurance "endows", meaning that at the end of the policy, currently age 121, the cash value rises to equal the death benefit. If you are alive you will receive the full value of the policy. This is just like equity in a house. If you sell your house you would not expect to receive the value of the house plus your equity.

[@vangustia]

It's were not around when Nelson Nash started banking concept. Wish whole life policies showed their costs.

[@TheMoneyAdvantage]

IUL's were around for many years after Nelson Nash start IBC, and he spoke/wrote about them often. Whole life policies have: 1) Guaranteed Premium 2) Guaranteed Cash Value 3) Guaranteed Death Benefit IUL costs are not fixed, and in our experience many IUL policy holders end up having to significantly increase their premium or lapse their policies. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@craigag76]

The top 3 comments here lead me to believe I MUST have the right agent in order not to get screwed. Seems risky.

[@TheMoneyAdvantage]

Thank you for watching!

[@Reve14twelve]

Exactly, find a good honest knowledgeable agent that cares for his clients. IUL are great but if designed unproperly it can hurt

[@SM-2149]

It also helps if you educate yourself on the product. So when you speak with the agent you’ll be able to tell if they know what they’re doing by asking questions. Even at 2% is still more than keeping your money in a savings account. This is a life insurance attached with a savings account not an investment account.

[@TheBLACKboard65]

VERY helpful! Thanks! Had just heard of IUL's as a possible investment strategy. Yours is one of 3 videos I watched. Yours is definitely the most comprehensive!!

[@TheMoneyAdvantage]

Glad it was helpful! Thank you for watching!

[@richardcaridi1982]

People need to understand something. The IUL was not meant to achieve a high return than the avg mutual fund. But it is used to have your cash value grow tax free every year & allows you to have a tax-free income at retirement. And yes, I know you can get tax-free income with a Roth but that Roth still needs to be invested somewhere giving you risk in the stock market.

[@JJ-di5vj]

Hey, I'm still learning about the IUL. I have a .75%-15% growth rate based on the S&P. The average three last 20 years has been 8%. I'm curious about the extra premiums. Currently I'm below 40 and am paying $25/month for the premium and much for for the cash value. How much more per month would I be paying in my 50s and 60s? Do u have any illustrations to help me understand the concept with my own policy? Thanks.

[@TheMoneyAdvantage]

It is impossible to accurately predict the future. Things like: what the fees can be increased to, what the caps can be reduced to, Stock market ups and downs, what premium actually gets paid into the policy, etc. Additionally, many of the factors lack guarantees within the contract. There are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Our clients prefer the safety and liquidity of whole life, and invest in things that they know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and prefer to hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@JJ-di5vj]

@@TheMoneyAdvantage Thank you for your response. Helpful videos u suggested. I know my policy has a general chart based on age that states the maximum percent you'll have to pay as a "cost of insurance." It is within the contract "entire contract." Can they change that?

[@TheMoneyAdvantage]

Without seeing your contract I cannot be 100% sure, but generally speaking yes, and normally they would have to raise the COI on everyone in that age group.

[@429mas]

the Transamerica product has that same crediting rate

[@richmartin3394]

@J J transAmerica and aegon are being investigated for fraud and deceptive practice. Idk who your IUL is through but they usually self implode. Check it out at lieffcabraser.com/consumer/universal-life-insurance/

[@damianlopezjr8164]

Design the policy correctly i keep fixing policyes that are too expensive or structured wrong, do whats right for the client and earn trust and watch people give you so many other refferals

[@TheMoneyAdvantage]

We are not saying that an IUL cannot or won't work. However, there are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Our clients prefer the safety and liquidity of whole life, and invest in things that they know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@anizedergham5389]

The best explanation I have ever heard of a ul

[@TheMoneyAdvantage]

Thank you for watching!

[@nedbass1]

I’m a novice in this field. I want an iul for my 3 year old. Before I can do that, my agent told me I need to increase my term life from 150k to 500k. Per his rationale, my son’s iul will always be half of my term insurance. First of all, is that true? If yes, I told him to go ahead and insure me for $1M, that way my son gets coverage for 500k in iul. My premium for my 1M term policy would be around 95 bucks a month for 30 years. My son’s 500k iul premium would range from 136-430ish a month. Does that sound right? My agent is with World Financial Group. What are your thoughts, please?

[@TheMoneyAdvantage]

Thank you for watching! Yes the amount of life insurance you can have on your child is limited by how much coverage the parents have. We cannot give you specific advice to your situation in a KZbin comment. While we personally do not prefer IUL's, it is important to ensure that you properly fund an IULs.

[@sylviasandy]

I bought a $750k IUL for myself and $500k each IUL for my 2 kids through a World Financial Group agent. As I'm typing this comment, I'm in the process of canceling all of those IULs I bought with my agent and getting a whole life with another company. She told me all the benefits of this policy without telling me the risks associated with my IULs (of course she gets large commissions from my policies). She had the nerves to sell me an option B IUL. What if I didn't watch all these videos about the consequences of IULs......I would've woken up one day in my 60s with the insurance company demanding for more premiums, meanwhile my cash value is going down to zero as I age. I hope you review your IUL carefully and make a decision before it's too late. Some of these agents will sell you anything for the commissions but don't care about you.

[@loganaiden2761]

please telll me more detail

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IUL's for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IUL's if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL's sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL's do not have guaranteed premium * IUL's do not have guaranteed cash that increases every year all the way to endowment * IUL's do not have guaranteed death benefit all the way to endowment * IUL's do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@mitchellglaser]

If you want guarantees, buy an annuity. Right now (January 2023) you can pay a lump sum and immediately receive over 6% return every year for life, guaranteed. If you let it cook for 5 years, you can get over 10%. And if you are married and one of you passes away, the survivor will continue to get the income for the rest of their life. Compare that to the two or three percent return from whole life.

[@TheMoneyAdvantage]

Thank you for watching! This is a 6-minute video regarding IULs for a particular use (Infinite Banking), it is not individual advice that covers how every possible individual’s financial picture and scenario should be handled. Annuities can be a great tool but are not for every situation either. No one tool does it all. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. With Infinite Banking, the emphasis is on maximizing Safety and Liquidity. With Infinite Banking, you can earn a return on the same money in two places at the same time. This allows you to boost investment returns without taking on more risk.

[@toufang-hmongwealthbuilders]

If you always max fund ur IUL, should u still be okay to use it as banking?

[@TheMoneyAdvantage]

Maybe. We don’t believe in buying insurance that “should” be okay. We want to know that it will be there.

[@toufang-hmongwealthbuilders]

The Money Advantage good point. Thanks.

[@stegbar]

Do not mix up Whole life insurance are not invested in Mutual Fund. Only Variable Life Insurance are investing mutual and stock.

[@TheMoneyAdvantage]

Thank you for watching!

[@mariosanchez8800]

whole life agents that push IBC will not tell you that ART is only half of the equation that Determines the total COI The other half Is something called net amount at risk as your net amount at risk decreases The internal fees and amount of insurance you're actually Paying for becomes less

[@TheMoneyAdvantage]

We are not saying that an IUL cannot or won't work. However, there are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Life insurance is not an investment. With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. I want life insurance that I know will be there for me, not likely/maybe be there for me. Additionally, I want to know that my cash value (emergency/opportunity fund) will be there for me. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. When it comes to my emergency/opportunity fund, I will sacrifice growth for safety and liquidity any day. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly what I want in life insurance and an emergency/opportunity fund. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@mariosanchez8800]

@@TheMoneyAdvantage And that's exactly my point people purchase IUL To earn a higher rate of return Because a standard 4% rate of return is not so much appealing since in merrily Keeps pace with inflation and when the dividend rate is nothing more than a simple return of excess premium As I would never advise anybody to use cash value for infinite banking purposes since these policies are front loaded in the beginning And the loan charge is usually greater then the declared dividend

[@Mike-01234]

The beneficiary only gets the face value of the policy the entire investment is handed over to the insurance company. IUL, or Whole life you pay 20 times the cost of a term policy.

[@TheMoneyAdvantage]

Thank you for watching! There's a common misconception about whole life insurance that the cash value and death benefit are two separate buckets of money. With whole life insurance, the cash value is a portion of your death benefit. The longer you have the policy, the more of your death benefit is available to you in the form of cash value until all of it is available to you at the end of the policy (usually age 121). Let's say that you are 30 years into your policy and your death benefit is $1,000,000, and your cash value is $500,000. This means that of the total $1M death benefit, $500K is available to you to use. The total here is $1M, not $1.5M. In this case, you could use up to $500,000 while you are still living. Say you chose to do nothing with the cash value and let it sit in the policy. If you died, your heirs would receive the full $1M death benefit. If you took a loan for $500,000 and died with an outstanding loan balance, the remaining death benefit of $500,000 would be distributed to your beneficiaries. Another way to think about this is that the cash value in whole life insurance is similar to the equity in a house. The cash value is a portion of the death benefit, the same way equity is a portion of the value of your house. Let's say after 30yrs, you have paid your mortgage, your house is worth 300K and you decide to sell it. You would not expect to get the value (300K) of the house plus all your mortgage payments back. If the policy is structured properly while you are living, you can access and utilize more cash value than you pay in premiums. When you die, your beneficiaries will also receive more than you pay in premiums.

[@Mike-01234]

@@TheMoneyAdvantage Yes exactly what I said if your policy is $80k and you build up $750k in the account and die the family gets $80k. $750k goes to the insurance company.

[@TheMoneyAdvantage]

@@Mike-01234 Not true. With whole life there are two components: cash value and dear benefit. If your cash value was 750K then your family would get more than that because the death benefit would be higher (unless you were in the last year of the policy, in which the cash value equals the death benefit). In whole life your cash value and death benefit are both growing each year, and the cash value will equal the death benefit at the age of endowment (age 121). Regarding whole life being more expensive: Once You Have More Cash Value Than the Total Premiums You’ve Paid, There’s No More Cost to You. As the cash value accelerates, the gap between paid-in premiums and available cash value shrinks. It then closes altogether about year 5 - 9 at your break-even point. That’s the first year that you have more cash value than what you’ve paid in premiums. Every year afterward, you’ll always have more cash value than what you’ve paid in, so the felt impact to you is that the insurance no longer has a cost. if I put dollars in and get more dollars out, expensive is a word that doesn’t suit the situation, because it doesn’t even require an assessment of value. themoneyadvantage.com/the-cost-of-whole-life-insurance/#h-3-once-you-have-more-cash-value-than-the-total-premiums-you-ve-paid-there-s-no-more-cost-to-you

[@Mike-01234]

@@TheMoneyAdvantage This PBS video explains it perfectly. kzbin.info/www/bejne/d5ilmaxunr2dpqs

[@TheMoneyAdvantage]

Not all life insurance companies are equal, not all whole life insurance products are equal, and not all policy designs are equal. Here is a video where we show a family with multiple in-force policies and how they are doing, and how they are being used: kzbin.info/www/bejne/nZnZdohqqb2trZo You cannot compare life insurance to the stock market. The stock market does not grow with uninterrupted compound interest: themoneyadvantage.com/real-rate-of-return-average-is-not-real/. Whole life insurance grows with uninterrupted compound growth: themoneyadvantage.com/high-cash-value-long-term-growth/. To get an apples-to-apples comparison you would need to compare it to other savings vehicles, not investments. Whole Life insurance is not an investment. Rather, it is an emergency and opportunity fund. A place to store cash in between deals. Here is why we use life insurance loans: themoneyadvantage.com/life-insurance-loans-and-why-we-use-them/. We have addressed all the "objections" mentioned here: Whole Life Insurance Infinite Banking Concept IBC Objections, Answered: kzbin.info/www/bejne/n561oHundsyopM0 Is Infinite Banking a SCAM? Dave Ramsey Says So: kzbin.info/www/bejne/gJ_FpGOfdrOXg7c Life Insurance Agent Commission and Whole Life Policy Design kzbin.info/www/bejne/f2XPomSCqcqjaNU Top Questions About Infinite Banking: Part 1 kzbin.info/www/bejne/p4e9k6dnqdSaadk Top Questions About Infinite Banking: Part 2 kzbin.info/www/bejne/rn-ueJ16asp4f8k

[@dawncarrasco8320]

I have term and it's now 73 month but wasn't told that if I out live the term or year of 85 years old I lose all that money. What a scam.

[@TheMoneyAdvantage]

Thank you for watching! Yes term insurance is only meant for the length of the "term." Often 10, 20, or 30 years.

[@thomassouthard7459]

As stated in this video, the context is specific to the underpinnings of an infinite banking concept. Not necessarily the case or purpose for which you would use an IUL. If as an agent you don't know how to properly design and use an IUL policy, please don't and stick to the mindlessly simple and guaranteed WL policy with guarantees for your clients. If there is a greater value you can achieve and properly utilize the IUL's flexibility and market-linked growth, and if the client understands and is willing to take some risk not found in a WL policy, then do so with eyes wide open. Use an IUL wisely.

[@TheMoneyAdvantage]

We are not saying that an IUL cannot or won't work. However, there are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Our clients prefer the safety and liquidity of whole life, and invest in things that they know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@joshuafootman1593]

You design your policy to the IRS codes of 7702, 72e, and 101a1

[@joshuafootman1593]

@UCUs1TpZ6gJN2LxJYBsohd9w I've noticed you keep saying increased premium. A properly structured policy that is max funded doesn't need to worry about needing more premium. And I've sat across a family that had a poor structured policy. The IUL indexing allows someone who wants to get the gains of the market. It's why agents shouldn't guarantee anything. Would be open to a facebook live interview? Id love to go over the pros and cons of a IUL. Whole life is a beeper compared to a smart phone IUL. I support Whole life for it's value. But the IUL when done correctly can wipe the board clean of a whole life. I've structured a policy where someone dumped a $100k for 5 years and it just grew to tax free retirement accumulation. And are you familiar with Arbitrage?

[@joshuafootman1593]

@UCUs1TpZ6gJN2LxJYBsohd9w Also wanted to add that the policy holder can turn the death benefit from increasing to level so that way their cost of insurance is the same. Id very much open to showing you well structured policies and what they look like. Let's link up and chat I enjoy topics of such. Are you not familiar with David McKnight ? Power of Zero ?

[@TheMoneyAdvantage]

@@joshuafootman1593 Yes you can change it to level but the COI will still vary because it is almost always based on one-year renewable rates.

[@TheMoneyAdvantage]

@@joshuafootman1593 A max funded policy has a better chance of working out, but it could require additional premium later because we have no idea what future results will be. In addition to the fact that a high majority of these or not sold as max funded, additionally they are sold a flexible premium and the contracts have all kinds of contingencies if things do not go exactly as hoped in the market and/or required by the contract. I don't agree that it will wipe whole life clean because you can not prove future results because you don't know what the indexes will do nor what the fees will be. Would love to see the example of the policy in which you dumped $100k for 5 yeas and the growth and distribution strategy. If you would like to discuss you can email [e-mail] and we can exchange contact info from there.

[@jeffblosil749]

@@TheMoneyAdvantage check out the page Curtis Ray. He founded a company called Suncor financial and I would be curious what you think about the video he created talking about whole life insurance. I don't think the answer is don't do an IUL but what part is broken and how do you fix it. Also go with a company that specializes in IULs. Unfortunately@joshua Footman does not. It's just one of the many products they offer.

[@mr.charley1507]

Yeah she's telling truth

[@TheMoneyAdvantage]

Thank you for watching!

[@Allenballen88]

Definitely valid concerns although that really depends on the agent and how they structured the policy. Check out Doug Andrews and his videos on if the agent is proficient enough to structure an iul policy

[@TheMoneyAdvantage]

Thank you for watching!

[@Allenballen88]

No problem! Good content! The very same issues i was concerned with

[@TheMoneyAdvantage]

We are not saying IUL's cannot or won't work, however, people need to understand the risks they are taking. I prefer the safety and liquidity of whole life, and invest outside of my policy in things I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and hand their money to someone else. Neither way is wrong. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Life insurance is not an investment. With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. I want life insurance that I know will be there for me, not likely/maybe be there for me. Additionally, I want to know that my cash value (emergency/opportunity fund) will be there for me. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. When it comes to my emergency/opportunity fund, I will sacrifice growth for safety and liquidity any day. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly what I want in life insurance and an emergency/opportunity fund. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@Allenballen88]

@@TheMoneyAdvantage very detailed and thorough response! I agree with everything you said about whole life! I just recently been digging into IUL and found that just like how not all whole life is structured properly or better, the same goes with IUL! It really depends on the person! And yes i agree, life insurance isn't an investment, it's more of a tax free cash cow nest egg when structured correctly and funded correctly. Thanks again for the video, info and responses!

[@joesmith9483]

the best part of the IUL is when they decrease your ceiling for no reason. And they are legally allowed to do it.

[@TheMoneyAdvantage]

Thanks for watching!

[@HGarach]

Wow!! You are so Awesome!!! 😘❤️ Love how you explain things!! Wish I would have watched this video before becoming an IUL agent last week.

[@TheMoneyAdvantage]

Thank you so much! While we do not use IULs for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@HGarach]

@@TheMoneyAdvantage you are very welcome! And thank you for your valuable comment back! :)

[@Mattius08]

It's how your advisor sets up the policy. If using for investment make sure death benefits are low and over fund it every month so rest will be invested into the S&P which is indexed. UIL should not be your main source of investing but more as a secondary after you fully fund 401k and IRAs. It's more of a tax burden relief on a forced savings account with life insurance attached to it. Again, IULs should only be a secondary investment after you fund all other investments first. If you are a low income earner purchase a term life insurance and invest the rest into your other investment accounts.

[@Mattius08]

If investing for retirement you should invest in this order 1. 401k. Max contribution 2.IRAs. Max contribution 3. Annuity set up by your advisor 4. UIL set up by a professional advisor with shortest surrender period and lowest death benefit focused on tax free saving growth.

[@TheMoneyAdvantage]

Thank you for watching and commenting! We do not believe in a cookie-cutter approach. No one on the Forbes 400 got their following typical financial advice. We believe in figuring out what works for the individual and helping them leverage their unique abilities and investing in things they know and can control. What works for one person may not work for another. What someone invests in and their level of success is dependent on their level of stewardship, knowledge, and control. What you are describing is more for those who want to hand their money over to a financial institution and hope that 30+ years later it all works out. Here are a few articles regarding investment philosophy and principles that might be helpful to someone who wants advice, but also wants to be actively involved and in control: 1) themoneyadvantage.com/saving-vs-investing-what-is-investing-part1-cash-flow/ 2) themoneyadvantage.com/saving-vs-investing-what-is-investing-part2-best-investments/ 3) themoneyadvantage.com/family-office-invest-like-the-wealthy-richard-c-wilson/ 4) themoneyadvantage.com/biggest-thing-you-can-do-to-increase-your-cash-flow/ 5) themoneyadvantage.com/ted-benna-father-401k/ 6) themoneyadvantage.com/real-rate-of-return-average-is-not-real/

[@deannacaver934]

As long as the IUL is structured properly, the IUL has the best way to protect against losing money. Depending on the comp, living benefits can also be a positive.

[@TheMoneyAdvantage]

Thank you for watching! How a policy is structured is only one aspect and does not make it the best way to protect against losing money. IULs shift more risk to the policyholder. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@deannacaver934]

@@TheMoneyAdvantage if you follow tax codes as well as the stock market, the IUL is still the best way for cash accumulation and living benefits. I pay attention to what my clients want and conduct next steps from there. Haven’t had a client have an issue because they are properly educated.

[@TheMoneyAdvantage]

We disagree. Insurance, by definition, is the transfer of risk. While an IUL has the potential to be better, it shifts more risk to the policyholder. The fact is you won't know if it is better until things play out over a long period of time. If maximizing safety ("protect against losing money"), as you said in your original comment, is the objective, then the IUL is not it as it does not transfer the most risk away from the policyholder. Over the last 40 years, we have had countless clients come to us with all flavors of universal products that did not work out as they hoped or planned.

[@LD-ed2jv]

Very helpful!!!😇

[@TheMoneyAdvantage]

Thank you for watching

[@michaelaidoo9]

Insightful..

[@TheMoneyAdvantage]

Thank you for watching!

[@AnthonyJFasoCPA]

I have been a CPA for over 20 years. I have seen numerous clients with IUL's and VUL's fail. AKA no more cash, no more death benefit. The WORST part is that once the policy is no longer inforce, neither are the tax benefits and they got a 1099 along with a huge tax bill they cannot afford. I tell my clients that if you want to invest in the market, invest in the market. If you want to practice the Infinite Banking Concept, listen to want the founder of IBC said about Universal LIfe on page 39 of Becoming Your Own Banker. He said "DON'T" PS. I had a VUL and once I actually read how the insurance company could raise the fees because they simply want to, I quickly got out of it. Why take the risk of having your policy go bankruptcy.?

[@TheMoneyAdvantage]

Thank you for sharing your experience as a CPA

[@lifeinsuranceguru]

I think you are confusing underfunded policies with overfunded policies. A properly-overfunded IUL can survive at ridiculously low interest crediting rates. And anyone who owned one from the beginning or any time in the 2000 to present period did very well. A policy that failed was designed with either minimal funding or the death benefit was not reduced after a short pay situation. I believe a good agent keeps all of the tools available in their toolkit. For pure death benefit protection, a whole life is certainly a good choice. Along with a Guaranteed UL. But for cash accumulation and tax-free retirement income, they are not going to beat an IUL. This kind of biased anti-IUL marketing just tells me they don't know their products.

[@TheOpinionSports]

Anthony J. Faso CPA again Universal life is diff than index universal life.

[@Sideler74]

The last guy who ran a scheme that offered IUL type returns was named Bernie Madoff. Lol😂

[@TheMoneyAdvantage]

Thank you for watching

[@propertyinvestnow4524]

I see on your website that you are Whole life insurance agent, so why would you say good things about IUL? Can you show Whole Life vs IUL cost comparison?

[@TheMoneyAdvantage]

Thank you watching! We are a team of financial professionals in all areas of finance. Life insurance, and even more specifically whole life is one small part of what we do. Whole life unlike a IUL has a Guaranteed premium that contractually will not increase therefore the Guaranteed values including cash value and death benefit are net of all costs. When the cash value exceeds the premium paid in whole life then at that point there really is no cost. themoneyadvantage.com/the-cost-of-whole-life-insurance-if-you-get-more-money-out-than-you-put-in-there-is-zero-cost/ We never said an IUL cannot or will not work, however the insured is taking on inherent risks that you are not taking on with the Guarantees in Whole Life.

[@hliyaj1220]

If I were a life insurance agent, I would only sale good products not bad products. I am sure everyone wants to make money. If IUL is good, wouldn't they be offering as well because they would make more money? 😂😅 so with this question, I believe her. I have a Flexible universal policy for my mom and yes, I regret it. Because the word universal means to expired at certain time. My mom policy will be expired soon and when that time comes, she will be too old and her insurance will cost more. We pay 100 a month and 79 goes to pay for fee for the policy. This fee increases every year. Once the fee is over the 100 premium, the insurance company will take out her cash value to pay for the premium in addition to the 100 premium we pay monthly. Then finally in the end, cash value will run out and policy premium will increase significantly.

[@texasowl5356]

You can lower the death benefit each year keeping insurance costs level.

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IULs for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@jminormedia1025]

Thank You!!

[@TheMoneyAdvantage]

Thank you for watching

[@Tkh21209]

So it sounds like a subscription 'premium'

[@TheMoneyAdvantage]

Thank you for watching!

[@charlesjerometompkins6631]

Respectively, why do the top 1% wealthy people have IUL policy? Some have multi policies. Understand if you have an agent who understand IUL can be a benefit to the policy holder especially in yearly index averaging. Most years you have above apy % return per annum and then some years maybe flat. Just like the stock market may have some bad years but if you take the historical 50, 60 + years average, usually does well in time. So it really how the policy is setup. Many can have safe general life with set guarantees. But the wealthy uses IUL policies for tax advantage while using funds in the policy for investment.

[@TheMoneyAdvantage]

Thank you for watching! According to a recent study by personal finance website SmartAsset, an American family needed to earn $597,815 in 2021 to be in the top 1% nationally (www.cnbc.com/2022/01/24/how-much-money-you-have-to-earn-to-be-in-the-top-1percent-in-every-us-state.html). We have clients that earn more than that in a month, and they do not have IUL policies. While we do not use IULs for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@Reve14twelve]

An IUL policy needs to be well structured but mainly well funded, I personally don't sell IUL's to people who can't fund it. For optimal results max it out or invest at least 500 dollars a month

[@TheMoneyAdvantage]

Thank you for watching and sharing your opinions!

[@fredfoster3345]

Ok so explain to me why whole life is better do you have a video on whole life

[@TheMoneyAdvantage]

Fred, We are not saying IUL's cannot or won't work, however, people need to understand the risks they are taking. Many videos on our channel are about whole life. I prefer the safety and liquidity of whole life, and invest outside of my policy in things I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@glsrider]

Watch an IUL agent's presentation and he would discuss the advantage of IUL over whole life. And, IUL illustration shows the cost of insurance while whole life doesn't. Why is it?

[@TheMoneyAdvantage]

Thank you for sharing your opinion! While the charges in WL are not broken down, the guaranteed cash values are provided net of all costs/fees. So you know what you are getting no matter what: themoneyadvantage.com/the-cost-of-whole-life-insurance-if-you-get-more-money-out-than-you-put-in-there-is-zero-cost/ We are not saying that an IUL cannot or won't work. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Life insurance is not an investment. With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. I want life insurance that I know will be there for me, not likely/maybe be there for me. Additionally, I want to know that my cash value (emergency/opportunity fund) will be there for me. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. When it comes to my emergency/opportunity fund, I will sacrifice growth for safety and liquidity any day. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly what I want in life insurance and an emergency/opportunity fund. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@KAMFamilyProductions]

What you have spent 60% of the time on regarding premium not covering future ART is assuming the client pays minimum required from the get go, but that's not how IUL should be structured. At 4:18 there is a mention of letters sending to PO asking for more money from an IUL, is there any screenshot of that? Which company? While "guarantees" sound good with a WL have you considered how no lapse work? Typical tactic of selling fear of losing coverage doesn't mean WL owners need to keep paying premium their whole lives, while typical IUL owners can stop paying at retirement if structured properly.

[@TheMoneyAdvantage]

Thank you for watching! We did not say letters were sent asking for money from anyones policy. In the video we stated that if your cash value cannot support your policy then more premium could be due. Im not really sure what you are trying to say, but yes we are very familiar with how no lapse works. No lapse is only good until the no lapse period ends. This is because IUL does not endow. Because a IUL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. With Whole life, you are not stuck paying premium forever. You always have the option to elect to do "Reduce Paid-Up" (themoneyadvantage.com/why-you-shouldnt-cancel-whole-life-insurance/), which will reduce the death benefit to the amount that can be purchased with your cash value, keeping the policy in force while at the same time requiring no more premium.

[@cheech423]

Whole life companies don't guarantee dividends. There are also costs involved but they shy away from disclosing. The average interest on cash value is 4-6%. To access cash value it's given as a loan, to avoid taxes, that has a fee of roughly 5-8%. The S&P500 outperforms 94% of all mutual and exchange traded funds over a 10 year period. Even Warren Buffett had a million dollar bet to prove this. The better IUL's have a floor of .75% and a cap of 15%. And yes, the design of it is crucial to benefiting the client. Unfortunately some advisors care more about themselves and their commission and not the clients best interest, which give IUL's a bad rep. Kind of like pitbulls, they can be incredible dogs but depends on how they are raised and treated.

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IUL’s for Infinite Banking we never said they cannot work. However, it is important for someone to understand all the risks. I generally prefer the safety and liquidity of whole life, and invest outside of my policy in things that cash flow, and that I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who are focused on accumulation only, and don't want to be in control. Neither way is wrong. Having said that our team has and will sell IUL's if it makes sense i.e. someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@martinson6957]

SO MUCH TRUTH IN THIS VIDEO. All the IUL salesman talk about “if the policy is built correctly” BUT NONE OF THEM ARE! Lol

[@TheMoneyAdvantage]

Thanks for watching! Even if they are designed properly very few will actually follow through and pay premiums exactly as illustrated.

[@hectorfernandez8349]

Thank you for the information.

[@TheMoneyAdvantage]

Our pleasure! Thank you for watching!

[@Baltimorejohn1]

This is true only if someone goes in not using the IUL properly... I sell them all and the approach she describes is absolutely the wrong approach... IUL's are best if you go in knowing you have to fund this up front... Most have success when they understand you only make the money off the money you put in it... So what's the goal put the money in as fast you can being reasonable of course

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IUL’s for Infinite Banking we never said they cannot work. However, it is important for someone to understand all the risks. You are assuming a very specific design and assuming the policy-owner pays premiums exactly as illustrated and several other nuances, however, in our experience that is not what happens in real life for most. This is a 6 minute video regarding IUL's for a particular use (Infinite Banking), it is not individual advice that covers how every possible individuals financial picture and scenario should be handled. This is at the strategy level, it is not meant to be a universal principle that applies to everybody. However the risks stated are real and everyone should be aware of them. The objective of Infinite banking is to maximize safety and liquidity over growth, not to maximize ROI in the policy. Infinite Banking, in addition to providing a death benefit, is a place to store cash in between deals. A savings equivalent not an investment. We generally prefer the safety and liquidity of my whole life and invest outside of our policies in things that cash flow, and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who are focused on accumulation only and don't want to be in control. Neither way is wrong. Having said that our team has and will sell IUL's if it makes sense i.e. someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly why we use them for Infinite Banking.

[@fredfoster3345]

So your saying Whole life is better

[@TheMoneyAdvantage]

Fred, thank you for watching! What I am saying is that IULs have risks. IUL can make sense, and maybe it does for you, but we do not know your financial picture, so we cannot make a recommendation for you, nor would we in a KZbin video or comment. If you would like to discuss this with us you can book a call here: themoneyadvantage.com/calendar While we do not use IULs for Infinite Banking, we never said they could not work. However, it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and not wanting to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@kakaliac]

I agree with you on some points. IULs can be very dangerous if they dont thoroughly undertand the policy. If you stay away from selling based on minimum premiums instead of the max target then it should be a solid contract. You keep mentioning guarantees though. Nothing in life is truly guaranteed whether it's in writing or not. We wouldn't have to worry about using state guaranty associations after bankruptcies if it really were such a thing. All in all it depends on what is suitable and preference. Some like flexibility. Some like simplicity. There are some that like the Dave Ramsey approach.🤷🏾‍♂️

[@TheMoneyAdvantage]

Thank you for watching! When we talk about Guarantees we are talking about the guarantees in the whole life insurance contract that you do not find in IULs which I outline below. Note: We are not saying that an IUL cannot or won't work. However, there are inherent risks that an insured takes on when purchasing an IUL. There is no free lunch in insurance so the potential to earn higher returns comes with more risk. Life insurance is not an investment. With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. I want life insurance that I know will be there for me, not likely/maybe be there for me. Additionally, I want to know that my cash value (emergency/opportunity fund) will be there for me. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. When it comes to my emergency/opportunity fund, I will sacrifice growth for safety and liquidity any day. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly what I want in life insurance and an emergency/opportunity fund. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@kakaliac]

I knew what you meant. Let me rephrase what I said. What good are guarantees if a company becomes insolvent for example? Also there are pros and cons to each type of product. Whole life is expensive with no way on increasing the DB through paid up additions. Also the cv is absorbed by the company after the claim.

[@TheMoneyAdvantage]

Thank you for commenting! The companies we work with have all existed for over 100 years and have paid dividends consecutively for over 100 years. Banks buy billions worth of Whole life insurance as part of their tier 1 capital. If they go insolvent the world has much bigger problems. Whole life is expensive compared to what? If you have more in cash value then you pay in premium then is that really expensive? Whole life insurance paid-up additions do increase the death benefit. The cash value is not "absorbed" by the company upon a death claim. The CV in a whole life policy is the portion of the death benefit that you can use, and/or would be given to you if you surrender the policy. Whole life cash value is a part of your death benefit, not a separate account. As I explained earlier whole life insurance "endows" meaning that at the end of the policy, currently age 121, the cash value rises to equal the death benefit. If you are alive you will receive the full value of the policy. This is just like equity in a house. If you sell your house you would not expect to receive the value of the house plus your equity. IUL's, as explained above, do not endow, and therefore do not have a guaranteed death benefit past a certain age. IUL's have more "potential", but that comes with more risk. Because an IUL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. If you think guarantees do not matter, then contract law does not matter. We would not enjoy the freedoms we have without contract law.

[@kakaliac]

@@TheMoneyAdvantage yeah Universal permanent policies use paid up additions to increase the death benefit. You cant do that with a regular WL. Everything is locked in with WL. I even reached out to the sales support to confirm it. 🤷🏾‍♂️

[@TheMoneyAdvantage]

@Center Cee I personally own whole life policies with paid-up additions that increase my death benefit, and most of our clients own policies structured that way. All of the carriers we work with allow for this, and we know of quite a few other carriers that do as well. I cannot speak for the specific company you are working with. Here are two articles I have written related to this: 1) themoneyadvantage.com/high-cash-value-long-term-growth/ 2) themoneyadvantage.com/paid-up-additions-get-the-best-policy-design-with-this-big-shift/

[@rukiddingmeNJ]

I keep seeing WL salesman/woman on YT saying how bad IUL is however I’m doing reviews on contracts I wrote 10-15 years ago that are performing just fine.

[@TheMoneyAdvantage]

Thanks for watching! While we do not use IULs for Infinite Banking, we never said they could not work. The bottom line is that IULs carry inherent risks that do not exist in Whole Life, and therefore it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. IBC is a different philosophy than those focused on accumulation only and not wanting to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, NOT Infinite Banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.

[@Danteyoutube662]

If an iUL is structured properly and with the right company the premium will not increase! Only when the proposed insured wants it to. Again looking at the past 20 years the IUL’s avg rate of return was 8% which is really hard to find with any money market account. I only watched 48 seconds and then read the description and it seems that you are downplaying the IUL to sell whole life! Even Dave Ramsey said you had to be a fool to get whole life but honestly it depends on the customers needs not what you think is right! A 401k can be good for someone who believes in it

[@TheMoneyAdvantage]

We are not saying IUL's cannot or won't work, however, people need to understand the risks they are taking. I prefer the safety and liquidity of whole life, and invest outside of my policy in things I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who don't want to be in control and hand their money to someone else. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY

[@ginnywinny0075]

In IUL, does it have to be 1M death benefit because my agent insists in it, he did not give me choice, or asked me. (I haven't signed it yet though)

[@TheMoneyAdvantage]

Thank you for asking! No, it does not.

[@angelangiangi9110]

The high your coverage the more money the agent gets. you decide how much your death benefit should be.

[@seannguyen5071]

You have all the choices to choose from that fit your financial decision. You need an agent who will look out for your best interest not his or her own commision.

[@wildercreekhoney]

Have the agent run an illustration with all your options and then pick the one that works for you.

[@patriciasanagustin2929]

I am an agent in California and I'm not sure what state you're from. However, that should not be the case. An IUL does not having a starting amount of 1M. I would question the moral of that agent. It's really upsetting to see these type of posts. Again, I would question the moral of the agent. Clients should always be equipped with the proper information so they can make better financial decisions for themselves and loved ones. And I believe in giving my clients options. I highly encourage you to find other options and compare them.

[@dorachild87]

But that's not entirely true. You can get set fixed premiums similar to whole life it really is based on how you design it

[@TheMoneyAdvantage]

Thank you for watching! One of the things about universal life is that you have a flexible premium. There is no scenario in which an IUL/UL product will be exactly like Whole Life. Having said that our team has and will sell IUL's if it makes sense i.e. someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. While we do not use IUL’s for Infinite Banking we never said they cannot work. However, it is important for someone to understand all the risks. I generally prefer the safety and liquidity of my whole life and invest outside of my policy in things that cash flow, and that I know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those who are focused on accumulation only and don't want to be in control. Neither way is wrong. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee for a rider to guarantee the death benefit to a specific age, you still don’t have a guaranteed cash value dollar amount. A whole life policy, whether it is max funded or minimally funded, still has a guaranteed cash value dollar amount (guaranteed to annually increase by a minimum dollar amount) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows you can reduce the death benefit amount so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following 3 things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IUL’s sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IUL’s do not have guaranteed premium * IUL’s do not have guaranteed cash that increases every year all the way to endowment * IUL’s do not have guaranteed death benefit all the way to endowment * IUL’s do not endow. Endowment is when the cash value equals the death benefit and the company pays out the death benefit to the insured Whole life has these guarantees, which is exactly why we use them for Infinite Banking.

[@antoniotorres4840]

In your analysis you are supposing that the client is paying the minimum (not the target) or just the target, but that is not the objective for an IUL, the IUL give you the chance to over-funding it and that extra will grow usually better that the market also to get loans tax free that you do not have to pay if that is the case and give you the flexibility to increasing or reduce your premiums in the hard times and to increase the over fund in the good times. Considering that the ROI is better that the index with the advantage of having a floor, as you mention. Of course there will be policies really badly designed that may perform as you mention created for novices or greedy agents who just care about the commission but if you are a good and knowledgeable agent you will have to do your homework and offer a policy according with the needs the possibility and to cover the future costumer needs.

[@TheMoneyAdvantage]

Thanks for watching! This is a video regarding IULs for a particular use (Infinite Banking). The objective of Infinite banking is to maximize safety and liquidity over growth, not to maximize ROI in the policy. Infinite Banking, in addition to providing a death benefit, is a place to store cash in between deals. A savings equivalent, not an investment. While we do not use IULs for Infinite Banking, we never said they could not work. The bottom line is that IULs carry inherent risks that do not exist in Whole Life, and therefore it is crucial to understand all the risks. We generally prefer the safety and liquidity of our whole life and invest outside of our policies in things that cash flow and that we know and can control. The whole life policy is an emergency/opportunity fund, a place to store cash in between deals. This is a different philosophy than those focused on accumulation only and not wanting to be in control. Neither way is wrong. Having said that, our team has and will sell IULs if it makes sense i.e., someone can demonstrate they can and will max fund, they understand the risk, and if the purpose is accumulation, not infinite banking. Here are a couple of resources that I would recommend to anyone considering purchasing an IUL: 1) kzbin.info/www/bejne/rZuWmWqoiNijmq8 2) kzbin.info/www/bejne/b6ucpqmiZ5iMfpY With an IUL, the insurance company only guarantees a gross earnings rate minimum and the death benefit for a period of time. With Whole Life, the cash value is guaranteed to increase every year by a minimum dollar amount, and the policy is guaranteed to endow. Even if you max fund an IUL, never miss a payment or pay late, and pay the extra fee to guarantee the death benefit to a specific age, you still don't have a guaranteed cash value dollar amount. Whether max funded or minimally funded, a whole life policy still has a guaranteed cash value dollar amount (guaranteed to increase by a minimum dollar amount annually) and a guaranteed death benefit to endowment (typically age 100 or 121). Because a UL does not endow, you can only reduce the death benefit to try to preserve the policy. Because Whole Life endows, you can reduce the death benefit amount, so it is GUARANTEED paid-up. Life insurance is not an investment. No matter how you design it, it is still life insurance. In any asset, you can only maximize 1-2 out of the following three things: Safety, Liquidity, and Growth. You have to sacrifice at least 1. IULs sacrifice Safety to get Growth by transferring risk (themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/) to the policyholder. * IULs do not have guaranteed premium * IULs do not have guaranteed cash that increases every year all the way to endowment * IULs do not have guaranteed death benefit all the way to endowment * IULs do not endow. Endowment is when the cash value equals the death benefit, and the company pays out the death benefit to the insured Whole life has these guarantees, which is why we use them for Infinite Banking.