What Does The Washington MPI Ruling Mean For IUL Across the USA?

[@LIFE180]

Get your IUL Policy Reviewed free here: RescueMyIUL.com

[@HazeltineLLC]

Chris - if you do what Ryan Griggs did and read the fine print behind the Overloan Protection Rider, you find the insurance company issuing the massive caveat that the IRS hasn't ruled on the use of the overloan protection rider. So it's possible the overloan protection rider could kick in and keep your policy in force, but the IRS would consider this effectively the same as surrendering the policy for tax purposes. So whether or not the overloan protection rider actually protects you from tax consequences has yet to be determined. In fairness, I don't think it's likely that the overloan protection rider usage would result in tax consequences, but then I'm not a tax attorney. To me, I would ask why an "overloan protection rider" or "no lapse guarantee" is necessary in the first place.

[@LIFE180]

Yeah, I was aware of that. But they have been doing it for about 13 years, so if the IRS hasn't ruled against that yet, I would be shocked. Still possible. Good catch.

[@Johanna042703]

If structured correctly IUL works

[@LIFE180]

Does it really? Explain more. Explain how. Define structured correctly. If you are so confident, email me an illustration properly structured including income. Do it the way you would sell it to me. I am 44. Fund it til 65 and then take income. Do a $20,000 per year premium. Send me your best and we will see how it goes.

[@TheOpinionSports]

I would not send him anything, this is a trick because it doesn’t matter what the illustration says because he will say the caps won’t stay where they are. He will pick and choose certain parts of the illustration that are and aren’t valid

[@Johanna042703]

@TheOpinionSports Thank you and I wasn't planning on it for that very reason. I do like him and feel he does bring value to the table and all about education, learning and applying as much as I can. To put a blanket opinion on IUL's though and imply that none of them work and can't be a viable product for tax Advantaged retirement planning seems absurd. I feel both traditional whole life and IUL's have their merits

[@LIFE180]

@Johanna042703 I appreciate the comment and sentiment of wanting IUL to work for tax free income. However, until I see one that has ACTUALLY worked, I'm holding to my opinion - especially since I've seen thousands blow up and there have been so many class action and individual lawsuits won by policyholders.

[@LIFE180]

@@TheOpinionSports not a trick at all. I just look at the facts in the policy and analyze potential upside and downside moving forward. Your opinion is irrelevant. You are the one who says "in force illustrations don't matter - all you need is the policy statement". That tells me you have no clue

[@LesterDG]

How about borrowing thru a ‘regular loan/non-participating) from and IUL? A carrier I know charge 2% and credit you back soon as you pay it back? ‘Net zero’ interest overall. I completely agree that RELOC or Participating Loan is extremely risky and used as this contradicts the ‘low risk strategy of IUL’. Also, I hope everyone (IUL Agents) watch this video and stop advertising or marketing IUL as a ‘Retirement’ worst ‘THE ONLY RETIREMENT’ vehicle everyone needs. 😢

[@LIFE180]

A net zero interest on an IUL has problems when using for retirement income because you are not cutting into the net amount at risk that the 50 bp's of positive spread show on a participating / index loan. I hear this idea a lot though. It doesn't work well. Is it safer? Of course. But not without it's own risks.

[@LesterDG]

Thanks for yor response and pointing a valid point. I like David McKnight’s stance on this where I’m thinking on using it only during downturn (if it extends more my cash reserves) and pay it back for sure when market picks up. That’s the only useable case that I see my cash value for having IUL and of course the coverage for the just in case. I have to check on the ‘at risk’ amount. I believe the overall DB goes down and risk of ‘tax implications’ would be lower to none if you take out only upto the amount premium paid.

[@LIFE180]

@@LesterDG If you are really looking into it from that concept, I would really suggest reading the book, Permission To Spend by Tom Wall. He is a good buddy of mine and a PHD in Retirement Income Planning. Also check out Dr Wade Pfau and his work on the Volatility Buffer strategy. You will want to use whole life, not IUL. That's just my take. Read and learn from them, as well. Brilliant people. Reach out if I can ever help.

[@LesterDG]

@@LIFE180 Thank you! I have ordered the book and start watching the videos. Very informative! I’ll keep you posted and expect that I’ll reachout one way or another. Again, thank you for all the great contents and providing a really great checks and balances on this topics.

[@JonathanAguilera-fz3vx]

I sell IUL so I can invest the commission in my ETFs ..

[@LIFE180]

you're hilarious 😂