Kai-Zen Review | IUL Premium Finance As A Retirement Plan

[@ariaqumarsi3699]

I find it interesting that your videos primarily criticize Indexed Universal Life (IUL) policies while avoiding a comprehensive discussion of loan charges and concealed fees associated with Whole Life insurance. The video content tends to downplay Whole Life's financial aspects and potential hidden costs. Moreover, your channel is affiliated with an IMO insurance agency, which seems to be dedicated to Whole Life insurance, a product with significantly higher premiums that result in greater commissions. This raises questions about whether your educational content is impartial or influenced by financial incentives that benefit your organization.

[@LIFE180]

Ummmm....I don't downplay any of that. Dig a bit deeper. Furthermore, whole life doesn't cost more over the life of the policy than IUL, I've done many videos on that....keep watching. Or if you have specific questions or critiques, make it and I am sure I can share a video on the topic.

[@LIFE180]

Furthermore, whole life commissions are far less than IUL apples to apples. Do some background on me and you'll see that I used to be a huge IUL advocate....but because of what I learned about how IUL actually works compared to how it is sold, I made a change to whole life.

[@Bexcap]

Here's a polished version of your comment: "I appreciate the time you spent analyzing the Kai-Zen plan. I was skeptical at first too, especially since IUL policies can be complex, and adding leverage introduces additional risk. However, you're stating that these policies have market risk, which is true of most financial instruments, like 401(k)s, IRAs, and other investments. If your point is 100% correct, then it would imply people shouldn't invest in any of these either. The limited upside potential of an IUL is balanced by the 0% floor, so you never suffer losses from the market downturns you mentioned. Moreover, there's the advantage of tax-free distributions, which helps reduce tax risk. Most importantly, this plan covers the risk of passing away too early-a devastating risk, especially in the affluent market. Thank you again for your opinion-there’s some truth to it, but I have to respectfully disagree. I’m happy to answer any questions. Dismissing a strategy like this without considering the larger macroeconomic and financial context doesn’t seem fair. Personally, I believe marrying this product with other investment vehicles creates a more balanced approach

[@LIFE180]

The problem is, the 0% floor isn't what it seems. Kai-Zen is effectively premium finance for the middle class. This is just a disaster in the making. If what you say is true, that means you should have some policies that have performed as well as they were illustrated over the past 10 years. After all, we just had the greatest bull run in history. If IUL provides upside potential, you should be able to show that they can capture UPSIDE compared to the "conservative" illustrations. If you can show me one policy 10 years old that has the original illustration and an in force illustration that has done that, I will have a live conversation with you. Until then, everything you are saying means nothing to me because I have too much REAL LIFE PROOF on the other side of the spectrum. Everything you're saying is based on the fact that you sell it....that's my guess. Wait til my book IUL Exposed comes out. Then you will learn about how IUL actually works. You are speaking just on the positive side, not the actual downside that the insurance companies try to avoid talking about....

[@jarrodkinman]

so even if your annual payout is $20,000 a year for 20 years you still turned your original $150,000 into $400,000 right?

[@LIFE180]

That's IF the illustration plays out in real life....which it won't. In addition, loan rates have gone up since I filmed this....which has made it even worse

[@jarrodkinman]

@@LIFE180 well, it still seems profitable. even if you get 12,000 a year that's what an 8% interest stock investment would pay you each year... just sayin' people preach diversifying

[@Bexcap]

He is making the point that inflation will reduce the purchasing power which is true in itself, but if you disregard the strategy when you yourself, do the financial plan of your clients planning to have them retire at $200,000 per year. You are also flipping the coin on the calculations you’re doing on the tax rates that people are going to pay in 20-30 years. This is another risk that people fail to calculate. If you do the side-by-side comparison , in order to have the same amount of distributions from retirement plan compared to Kai-Zen plan Pricing in taxes, you would need to earn 15% or more into a taxable vehicle in order to equal the money coming out of this Kai-Zen plan.

[@John-Jones13]

This video presents a misleading scenario by showcasing a policy that’s not ideal for the situation. In a previous video, it was advised not to pursue Kai-Zen if you're 50 or older, yet this illustration involves someone who’s 56. This inconsistency is confusing. Additionally, it’s no surprise that the numbers look unfavorable when the example shows the investor taking distributions immediately after repaying the loan, leaving no time for the strategy to benefit from the leverage.

[@LIFE180]

I never said the only reason to not do Kai-Zen is if you are 50 or older. 50 or older for ANY IUL is dangerous, that is what I said. Kai-Zen is a dangerous marketing strategy using a pseudo premium finance for upper-middle income, when premium finance should ONLY be used in the $10m+ net worth range. So many people having problems with these already. I am getting a lot of people reaching out. We are putting content together and have been referring those people to a legal team because it is so bad.

[@erickmclemore114]

@LIFE180 you up for a debate with Daen Wombwell from NIW the Co-Founder?

[@HoaTruong-rg2fp]

From 2018-2024, funded an IUL $60 a month for 100k policy. After 6 years, the cash value is $1500. Decided to cancel to get $500 after surrender charge applied. While during the same time period, bought a 30 years term life for 100k only cost $7 a month. Yup, buy term life, invest the rest in index fund yourselves. You dont need nobody "invest" for you just to charge you premium management fee. You could not beat the market, join them.

[@LIFE180]

I wouldn't say buy term and invest the difference is the way to go, but IUL certainly isn't... The problem with buy term and invest the difference is that it only focuses on investing and it doesn't take into consideration other financial needs....like building an emergency fund, building an opportunity fund for real estate investment, living benefits, volatility buffer to mitigate sequence of return risk, guaranteed tax free legacy.... Sorry you got nailed with the BS claims of IUL....but be cautious

[@bonnienortz]

Thanks for the video. I learned something here and from the comments too.

[@paddle_shift]

I know you tried hard to explain this. Not easy to do. I think you may have interest rates backwards regarding if rates go up from 4 to 5%. If you get in this plan when the rates were 4% and it subsequently goes up to 5% bond prices move inverse to rates meaning if rates move from 4% to 5% bond prices FALL not rise. Your contribution would have to RISE to compensate the higher rates needed for that fund.

[@femuharram]

How would you loose “all 150k” if there’s a floor of 0?

[@LIFE180]

Because of fees and costs inside the policy. It happens all the time. That's why I say they are the most misrepresented financial product in the world

[@nationalcbdinsiders9723]

@@LIFE180 You would only lose all 150k if the market was negative every single year. 20 to 30 years straight if that was the case the market would be in shambles and the USD would be worthless at that point. How and why are you even talking about this if you left the industry in 2016?

[@LIFE180]

@National CBD Insiders that's simply inaccurate. The fact you make that statement shows that you need to learn more about how IUL'S actually work. Not trying to be offensive or insult you, but I have many videos explaining this....

[@nationalcbdinsiders9723]

@@LIFE180 show me the proof that this is the case in a properly structured IUL and then I will take you seriously. Otherwise what you teach is a joke

[@LIFE180]

@National CBD Insiders I don't need go show you anything. Just do the research. Look at the history. Look at the cap rates. Look at the facts of history that IUL'S haven't even given "upside potential" in the greatest bull market in history. You can keep being emotional about it or you can a Look at facts. Listen, I get it, I bought into IUL once upon a time. And when I realized how misleading they were, it was a hard transition.

[@nickjames7914]

Loll that interest rate/options knot you just wove was a mess. Your knit picking of this hypothetical illustration is so drenched in bias it’s actually a bit embarrassing. A good advisor/agent will pick the right product for the right client. There are no good or bad products. Just products for certain situations. Stop trying so desperately to make it such a horrible and risky idea. I’ve seen tons of these pan out just fine for the right people. Is it good for a family with 200k in saving making a combined 160k a year? No. Is it an option for a couple with 2 million in liquid assets with 800k combined income? Yes it absolutely is. Yes there are risks. There are also benefits. Stop selling what you like and start advising based on the client you’re in front of.

[@LIFE180]

You're wrong. This is a bad product. Interest rate increases on the loans alone (premium finance side) will crush the ability of the policy to grow and do what you want. If you look at the marketing material, this isn't geared towards the person making 800k/year. It is geared to the 200k. If you're making 800k, had the liquid reserves, and still wanted to do premium finance, this would be one of the world PF options you could choose from.

[@GiganticAntics]

What's your recommendation for retiring when you start saving in late 20s. I've been looking at deferred annuities but am not sure that it's the best option.

[@LIFE180]

Deferred annuities are not a great accumulation tool, in my opinion. I save in whole life insurance to build your emergency fund and opportunity fund. Then invest in real estate with the money you saved.

[@dapingzheng8016]

Yes, low return and high inflation kill it.

[@charlesbrown2372]

Clearly doesn’t understand IUL and This strategy haha my IUL has Returned 11% since 2014

[@LIFE180]

If that's the case and it is 10 years old, submit it to the #IULchallenge and you can win a lot of money. You can't. I have forgotten more about IUL than you know. Watch more content before an uneducated comment like that.

[@leofer5577]

Their main carrier is NLG/LSW

[@LIFE180]

Thx. I actually found that out after filming. That's crazy. This is a very very very risky way to go about IUL, which I'm not a fan of in the first place. But this is just a tragedy in the making....

[@genwe1894]

@@LIFE180 are these bad carriers?

[@LIFE180]

@@genwe1894 I was the Director of Biz Development for them back in 2014. I left for a reason. I won't classify them as "bad", unless you quantify "bad" as the IUL product never performing as it was sold... In which case every IUL carrier over a 10 year period is bad. On the whole, NLG sells more IUL because of great marketing than anyone else...but I would avoid it like the plague...

[@Bexcap]

And Allianz. Both great companies with strong financials and proven track record

[@Bexcap]

@@genwe1894absolutely not, these carriers have been around since the 1800s they are so big and so established with a proven track record. Ive looked under the hood on their numbers and they know what they are doing.

[@KevinDoyle-g2h]

Do you do even offer Premium Financing for your High Net Worth Clientele? Or in a Kai-Zen situation High Earner Clients? Instead you suggest the client pay the traditional way for an IUL on steroids, instead of using their wealth as leverage and continuing to grow their wealth the way they have been to get to this point in the first place? The amount of money they are paying for the interest rate on the loan to finance the premium is still less then the amount they would pay traditionally. To get the same results. Just FYI depending on the Insurance company providing the IUL, you can lock in the interest rate and avoid paying more then the agreed upon in the event interest rates go up.. The most messed up part about this incredibly negative view on premium financing, is that it is directed towards a crowd that 99% would never even qualify for premium financing. Because the people that would, aren't watching this BS. They are too busy making more money. You're just spreading negative rumors..

[@LIFE180]

If we do premium finance, it is for clients whose net worth is $15 million MINIMUM. And then it is ONLY with whole life. IUL will never be on steroids. I think you should learn more about IUL. I am all about leverage and risk....but you shouldn't be leveraging or taking risk inside a life insurance policy. These Kai Zen policies are already starting to have problems.....I filmed this video a couple years ago....and now people are starting to come to me showing the problems they are having. Premium finance, in general, is in for a tough time in the near term.

[@OvertIntelligence]

Wow, you are no better than them. You said annihilating. How. Now you might not have the huge gains every year in IUL but you aren't going to lose. In fact you should be able to average at least 6% conservatively net on your money. Now there is a debate to be had if one is to just take the for sure 4% and roll without having to do so much thinking....

[@LIFE180]

That statement is so uneducated, I don't even know where to begin.... I have an entire playlist that will educate you so you can learn about IUL. Because if you truly believe what you just said, you don't know what you're selling. Look up #IULchallenge

[@OvertIntelligence]

@@LIFE180 Simply tell me what advantage whole life policy has over IUL?

[@LIFE180]

There are too many to list. First, the fact that IUL is a failing experiment that looks amazing on paper but never performs. Second, the fact that with whole life you are a business partner with the insurance company but with IUL you are a profit center. Third, with IUL, the insurance company is in control of the variables that lead to success, with whole life, the policy holder is in control. Ask any wealthy person the attributes they are looking for in an asset, and they will tell you control is #1. You simply don't have that with IUL. AND, IUL hasn't even met performance in the greatest bull run of all time. If it didn't take advantage of "upside potential" during the upside, what's it going to do for the next decade? I will tell you this - it isn't good. Watch this video: kzbin.info/www/bejne/qp6xdHeDqtWBe6c

[@financialprofessional4504]

@@LIFE180 Once again, misleading statements full of vague information and hubris attitude. Where's the fact to back up your statement? Saying that "there are too many to list" postures you as a 'know it all' without facts. You've made hollow statements to bully the public. IUL's are not an experiment nor are they failing. Prove your point with facts, we double dog dare ya!

[@nationalcbdinsiders9723]

@@LIFE180 another classic whole life vs IUL case 😂 You're right IUL can fail! if it's not properly structured. You're partnered with the insurance company? You must be pertaining to a dividine whole life... they are not obligated to pay dividines we have seen that time and time again. Interest rate in a Whole life LOL... I have access to both IUL & WL so I'm not coming from one angle.

[@joesmith9483]

can you get an IUL with no cap?

[@fund.your.infinity]

Yes you can! With the right product, you can get 100% participation guaranteed, 0% spread & 0% fees

[@LIFE180]

This is not the case. There are uncapped indexes, but the company can always reduce the performance of the IUL. Show me the IUL you are talking about? What is the company and name of the product? Probably talking about the PacLife Trident, but that's a joke....I have a video coming out of that junk this week.

[@joesmith9483]

@@LIFE180 let me know when you do a video on the no cap Pacific Life. These companies all have the right to change the cap which i think is ridiculous.

[@LIFE180]

@@joesmith9483 it's coming out tomorrow

[@LIFE180]

@@joesmith9483 also did this one kzbin.info/www/bejne/o6DEoKtneNWaa6c

[@John-Jones13]

This video effectively highlights the risks and potential downsides of this strategy. However, it doesn’t seem to address who might actually benefit from this policy. I'm always cautious of financial advice presented in absolutes because, in reality, there are situations where almost any strategy could be suitable for the right investor. One fun example....somehow my parents actually have an amazing time share through Hilton...who would have thought lol. One last piece to address is start watching at 16:45. Notice anything? He's just showing a poorly designed policy. The illustration shows taking income Right after paying the loan back. Obviously this won't work out in the investor's favor because there isn't enough time for the CV to recover from paying the loan back and take advantage of the leverage. This gentleman said in another video to never do Kai-Zen if you're 50 or older...so he isn't showing an example where this WORKS. This video's misleading.

[@LIFE180]

I feel like I responded to this in my response to your other comment. Designing policies better doesn't solve the problem with Kai-Zen....

[@mijuajua4820]

These types of policies have to be structured properly & have many moving parts. The agent must be really well versed in how these work. They are great products for VERY few people. Your information is spot on!🙌🏻

[@Mr.Narwahl]

You are dangerous....you are stating assumptions about a product you have no clue on how it works. The annual income required is not 100K-150K....it's more....you are a compliance nightmare.

[@LIFE180]

Okay.....I am simply going off of the materials on the marketing that is compliance approved.... Also, I have spoken to many policy holders of this product with problems due to interest rates increasing. Facts are, KaiZen is a premium finance strategy being pitched to middle class people when this type of offering should only be to people with $15m+ net worth due to the risks and need to come out of pocket for extra money.

[@gracehuynh4328]

You help me understand this product. Very High risk. So I stay out of it. Thank you.

[@Nemoxyooj]

Thank you, you are my god.

[@LIFE180]

Glad to help! But I am no god, lol.

[@charlesbrown2372]

As if the banks want to put majority of THIER money into a risky strategy…use your brain

[@LIFE180]

Banks don't use IUL, they use whole life

[@nationalcbdinsiders9723]

Didn't you mention you are not in the life insurance industry? And you left in 2016?

[@LIFE180]

I was out, but I am back. You will hear me say different things at different times based on when the video was filmed. Anything pre 2022 I was out. But I am back

[@guntodd]

Thank you. Just recently got approached with this product. Glad I found your channel and watched it.

[@LIFE180]

Glad it was helpful!

[@yodhangzien]

Fee Keep increase that the money going get more low in the long term

[@LIFE180]

Yep. Ticking time bomb

[@wherewolf87]

THIS VIDEO SAVED MY LIFE

[@LIFE180]

Were you about to invest in it?

[@wherewolf87]

@@LIFE180 YES hahaha

[@LIFE180]

@@wherewolf87 glad this helped 👊🏻

[@financialprofessional4504]

@@LIFE180 This product is Not an investment. Not classified as one and misleading to speak of it as such.

[@genwe1894]

I rather just buy a simple term or traditional whole life. Any excess cash, just buy 3-10 year treasuries or real estate if you want alternative juice

[@LIFE180]

Historically, an overfunded whole life policy with PUA's is going to perform similarly to 3-10 year treasuries PLUS get you additional benefits and have liquidity of the capital if needed.