The Five Things Your LIRP Must Have

[@rossfbrowne]

Excellent explanation. It's good to have Dave and his team... on my team.

[@DavidMcKnight]

Yes Ross!

[@jasondurant6581]

Actually all 5 characteristics are important ‼️

[@DavidMcKnight]

Indeed.

[@scottjacob5269]

all 5 features a must have! Great job Dave!

[@DavidMcKnight]

Thanks Scott!

[@kriskris5989]

Awesome content David..I’ve watched a ton of youtube videos and read a lot about IUL products but no one touched upon these topics..I have a policy with Allianz ,i just emailed them a few questions to learn more about my policy. The best thing about your channel is that you don’t hype up IUL like other channels..In the long term if I get 5.5-7% growth for my policy,I am a Happy camper

[@DavidMcKnight]

Allianz is super solid and you’re just right on your ROR expectation.

[@kriskris5989]

@@DavidMcKnight looking forward to readijg your book Look before you LIRP

[@kriskris5989]

@@DavidMcKnight how important is Comdex score of an Insurance company? If a company has a good product but the comdex score is in the 60’s, would you get a policy from them? I reviewed an F&G policy ,the product looks decent but their comdex score is 62..I was asking myself,why would I get it from this company when there are quite a few IUL companies with Comdex score in the 90’s..I don’t hear other experts like you talk about a Comdex score so am I overthinking? By the way..your book Look before you LIRP just arrived today,i will read it to learn more

[@davidmcknight8201]

@@kriskris5989 I wouldn't really touch a company below 90

[@kriskris5989]

@@davidmcknight8201 thanks for validating what I was thinking, I have seen a ton of videos about IUL but I have yet to see someone cover the Comdex score as a factor in picking a company ..thanks for your response as always

[@hanswhite]

David I love your content! You should have way more subscribers on KZbin! I was wondering about your thoughts on 529 accounts for saving for children's college? Also what do you think about HSAs and how they fit into your Power of Zero strategy?

[@DavidMcKnight]

I love them both!

[@lionheart93]

I like this video format with text. thank you

[@DavidMcKnight]

You’re welcome 👍

[@RetirementPlanningEducation]

Great video!

[@DavidMcKnight]

Thanks!

[@donmcnally7756]

Excellent video

[@DavidMcKnight]

Thanks Don!

[@kimouthavong7866]

I did Level B and Max Funded IUL policy for all my families.

[@DavidMcKnight]

Nice!

[@thehappydaysapp]

I like LTC and zero cost loans

[@lionheart93]

No prepayment penalty fees should be in contract I think?

[@DavidMcKnight]

These do exist but most companies charge an additional fee for it so it’s a drag on your cash value.

[@dc5540]

Thank you Dave. What company do you like that has Daily or Weekly Sweeps? Or I guess even a better question, which company has all 5 ? Thank you !

[@DavidMcKnight]

Allianz or North American

[@lifecoverageiq1753]

Fantastic video! Does NLG happen to be one of the companies possessing the five elements you discussed?

[@DavidMcKnight]

My understanding is that they don't guarantee their 0% loan.

[@lifecoverageiq1753]

Thank you!@@DavidMcKnight

[@opt4living]

Why do you prefer IUL to whole life for LIRP?

[@DavidMcKnight]

Slightly higher growth potential and guaranteed zero cost loans.

[@opt4living]

@@DavidMcKnight with no consideration for the increased cost of using the growth in the policy to pay for the ever increasing premiums? I guess I’m missing how growth could ever catch the rate increases if we are fortunate to live to 100. My dad’s folks lived to mid 90s.

[@DavidMcKnight]

@@opt4living the premiums aren’t ever-increasing because as your cash value grows you’re paying for less insurance. By the time you start taking money out the actual life insurance expenses are well below 1% of the cash value if structured properly.

[@opt4living]

@@DavidMcKnight understood, but the growth rate on cash values is more stable and doesn’t increase exponentially as we age. So, while the amount of insurance we need drops gradually, the cost of what we still need to purchase is increasing exponentially towards 100. What am I missing? I probably need a definition of properly structured. Ironically, with whole life, the cost is fixed so the growth in the cash values overtakes it faster. I bought whole life at 27. It was the third smartest thing I ever did.

[@DavidMcKnight]

@@opt4living I think we may be talking past each other here. If my DB is $500k, and my cash value is $400k, I'm only paying for $100k of insurance, under option A. If my CV then grows to $425k, I'm paying for $75k of insurance. So, even though I'm getting older, and the insurance is getting more costly, I'm purchasing less of it.

[@liannejernigan4895]

What company is the one you like that utilize interest in advance?

[@DavidMcKnight]

Allianz

[@liannejernigan4895]

I was hoping you were gonna say that lol cuz I’m contracted with them. What about F&G?

[@DallinBunnell]

How can you tell if it's interest in arrears or at the start of the year? Does that information get shared on illustrations? Order of importance for me: 1) Overloan protection. Even if the policy was massively mismanaged, at least it won't lapse and cause a taxable event. 2) Guaranteed wash loan. I know often people will still use an indexed loan in retirement for income, but the fixed/wash loan is a lot less risky, and it should 100% be guaranteed no-cost. 3) Long-term care. If your policy doesn't have it, you're paying the same premium to not get a benefit that other companies would be providing. Another analogy would be like paying for water at a restaurant. 4) Interest in arrears. I didn't know about this until today, but it does seem important to maximize its efficiency. 5) Sweeps. Usually daily, weekly, or monthly is okay. But anything longer than that does pose a massive opportunity cost. While essential, I'd still rank it last in importance on this list.

[@ST17comingforyou]

no cost loans

[@DavidMcKnight]

So Important!

[@KG-wh8yv]

Didn't hear this mentioned. Who gets the Cash Value when you die ?

[@DavidMcKnight]

The beneficiary. They get the cash value plus the amount of life insurance being paid for at the time. That Dave Ramsey makes this a continued talking point demonstrates how little he knows about it.

[@KG-wh8yv]

@@DavidMcKnight Then I agree. Dave Ramsey is correct with hands on knowledge about many things. But that doesn't mean every Life Insurance product is the same. Comes down to what is contractually guaranteed in writing. I did just complete his step 6 though and now I will have to look into this. Great info, we all need the truth and transparency before signing any contracts. What are you thoughts about the Double Play strategy ,Tom Rutkowski, that uses this vehicle.

[@DavidMcKnight]

@@KG-wh8yv not really familiar with that.

[@KG-wh8yv]

@@DavidMcKnight kzbin.info/www/bejne/pJayiYyCitOGaZI

[@donaldmcnally9919]

O% net loans

[@DavidMcKnight]

Indeed!