Which Has More Cash Value? 1 Policy? Or Multiple? | IBC Global

[@TheSolver-PR]

LET ME TELL YOU ONE THING... This presentation is GOLD. As an agent, I thank this man for all of his videos. But this one in particular is super enlightening. I know that companies-producers-agents may not love the commission as a result of a well designed of a CV life insurance, but as a professional, if you provide value to your customer with this approach; you're going to be referred and sleep well knowing that you don't screw someone over for a fat commission...and still get paid.

[@nadjadavidson411]

I agree! I just passed my state exam and have been watching a lot of his videos. Judging from the number of subscribers, there are not enough people who know about of IBC. I know I wish I had when I was younger.

[@SS-fs3ld]

Steve you bring so much excitement to life insurance. I was on the edge of my seat waiting to see what would happen at years 11 and 21 compared to the longterm policy. LOL. I have zero background in finance and find these videos fascinating. Most content on this subject is a sell on the concept of Infinite Banking. Once you're beyond that point you want to see numbers. Your videos give so much rich detail accessible to the numbers-oriented lay person. Just as I'm thinking to myself "I wonder what would happen if..." I glance at the sidebar and there is a video addressing that exact question. Thank you!

[@IBCGlobalInc]

Thank you! Appreciate the comment and kind words! :)

[@StumpRider719]

Steve, great info. My wife and I have multiple smaller policies that we plan to surrender at various times during our retirement. Part of our retirement strategy. Thanks for sharing.

[@IBCGlobalInc]

Thanks for the comment!

[@maxpruger837]

If you surrender the policies, you may have to pay taxes on the gains (if you're retired it may not be a big deal). I don't know if this would be better, but you may want to look at selling the policies. The death benefit will be larger than the cash value and if those policies have been around for a while they should be pretty efficient. I've never done this so I'm not sure if it'll be better but may be something to look into.

[@maxpruger837]

Fantastic video. I think this will work extremely well for kids policies. The next policy I take on my kids will be a short pay.

[@IBCGlobalInc]

Thanks Max!

[@acrosvidal2494]

whats a pway?

[@johngatlin9961]

If I were to have 1 million for this whole life what would be the best for me if I wanted max interest quick access

[@IBCGlobalInc]

Good question. I would consider a high early cash value policy with at least 90% of your payment in cash value and a break even of 3 to 5 years. I've included two videos that you may find helpful. - kzbin.info/www/bejne/a2a2gHd5m8-cb6M - kzbin.info/www/bejne/mZ7WoK2JeKhkfLs

[@johngatlin9961]

Thanx watching now

[@TerryAllison]

Why would you use tenpay in the 35 45 55 example rather than writing each as a 100-year ? The underwriting risk is too high in a 10 pay should you get uninsurable

[@ckarias]

What Excel Formula do you use to calculate IRR and ARR?

[@IBCGlobalInc]

We have our own formula and will also export the IRRs from insurance companies' software. The excel workbooks (with formulas) are available to our clients who have opened policies and agents subscribed to ILS Agent Academy.

[@octavioolivera3414]

I'm 60 years old, is a cash value policy still possible?

[@IBCGlobalInc]

Good question. Yes, a policy is still possible. - kzbin.info/www/bejne/lXy8n6eod7aVo7c

[@stephensampson1]

As soon as this video started, I thought about the medical qualification aspect regarding the second and third 10-pay policies. As I watched, I wonder if it is possible to start 2 policies (10-pay and 100 policy) and divide the $100K between the 2. Of course, the insured would have to find what is optimal depending on their needs. There is also the realization that the total would be less once the 10-pay drops off. When that happens, another 10-pay can be applied for at that time with less concern regarding underwriting.

[@IBCGlobalInc]

Thanks Stephen! Good idea :)

[@dylanrobertson68]

This is a very fascinating comparison and one that surprised me ! I am glad that I locked in the 4% guaranteed rate for my first policy as I intend to pay into it for 30 years. With the 10 pay strategy, Would it be possible to get two convertible term policies the same year you opened up the first 10 pay policy so it would lock in your health rating ? I want to say I heard convertible term only makes sense if you convert within the first 5 years so perhaps wouldnt work in this case

[@IBCGlobalInc]

Thanks Dylan! This will be surprising to most people. Tomorrow's video will go over the same study but with the old products (Guaranteed rate of 4%). Good question on the term policies. You can open a convertible term policy, but the strategy is not always optimal. Term conversion rules are often restrictive and can force a higher base premium than one would like with the new policy. I've included two videos that might be helpful. - kzbin.info/www/bejne/kJCUlmmMh6l9hpI - kzbin.info/www/bejne/qXaWhJiBf7-dps0

[@StepUpInvestments]

interesting to see a stand alone 10 year limited pay policy (assuming starting at age 36) after having paid all premiums after year 10, the IRR maintains ~5% which is 1% less than the Mass Mutual gross dividend rate of 6%, so insurance company still charges 1% fee for cost of running insurance policy but not necessarily paying any further premiums; compare this to the L100 policy and after year 10 the IRR is about 3.5-4.4% which is 1.6-2.5% fees for cost of running insurance policy + premiums (assuming same 6% gross dividend rate) so premiums cost for L100 policy is about 0.6-1.5% yearly (assuming 1% fee for all other insurance policy costs) - is this an accurate calculation?

[@antonioreyes2692]

Does 5 Pay exist with MassMatual?

[@IBCGlobalInc]

Good question. A true 5 Pay policy does not exist with MassMutual, but you can easily fund a policy for 5 years. The below video provides a demonstration of this. - kzbin.info/www/bejne/qYDbnYiCnciiZ6M