What is indexed universal life insurance? Terrible timing on the VUL. Yes, you can get your money out anytime, but there is something called a surrender fee that is retained by the insurance company. http://www.moneychimp.com/features/market_cagr.htm. I’ll say up front: typical off-the-shelf “xULs”–i.e. “IULs don’t count the dividends.” James, that just scratches the surface of the problem and the deception the players use when they generate and sell xULs. Explaining Indexed Universal Life (IUL) Insurance. Your email address will not be published. If so, please email a statement and I’ll be the first to expound upon your wisdom in purchasing this policy (and will recommend it to my readers). Everything else is smoke and mirrors. Per this def, a cash-value policy such as WL and UL is most definitely an investment. Or, much worse a taxable account your using as a retirement vehicle. Read ALL of the comments in one go. Let me start by saying I sell IULs, I own an IUL and some of my clients own IULs. We’ll see. For those of us that are in a 39.6% tax bracket, paying an extra 3.8% surtax on investment income, and 20% on capital gains is just plain ludicrous when you can have a product like IUL that grows tax free. are woefully inconsistent and deficient in their market study frequencies, methodologies, and source citations. This is not a one-size-fits-all decision. I posted a similar comment to your same article at at Physicians’ Money Digest. raises the alarm on this phenomenon: the very rich scooping up cash-value policies mainly for tax-shelter purposes. Universal life was invented in the 1970s and comprised 25% of life insurance policies purchased in the 1980s and 1990s. On that 4-page PDF, if you look at Figure 1, titled “Life insurance industry aggregate assets,” you see the two accounts, the General (GA) and Separate (SA). ULs, VULs, and IULs–are deeply often fatally flawed products. I’m in a monthly point-to-point crediting method which has a cap of 5% per month. For more on regulation, please go here: www dot researchgate dot net/publication/228341618_An_Overview_of_the_Insurance_Industry_and_Its_Regulation. The point is, what Transamerica truly invests in is a *black box* to you the policyholder. At least people now have the calculator to check it for themselves. Wouldn’t that make a term life insurance and a savings account “more advantageous” in the long term? You might also consider buying the book: https://www.whitecoatinvestor.com/the-book/, But basically, I recommend that the lion’s share of the portfolio for most physicians is composed of a static asset allocation of an appropriately risky collection of a few low-cost, broadly diversified index mutual funds periodically rebalanced. I do see how an IUL would not be appropriate for alot of people out there. According to LIMRA, indexed universal life insurance policy premiums increased 23% in 2014. I disagree that “it’s not hard to do.” I think it’s far more complex to make the legitimate comparisons, especially when you have to make assumptions for time periods that may be a half century away. 3- I had close to $70K and there were potential taxable penalties but no surrender charges etc. For someone who isn’t familiar with the topic, this can seem overwhelming and complicated. 5. Very few people if anyone at all should ever consider them. But if you want to invest in IUL with all or a portion of your portfolio, be my guest. Everybody is so totally different. The older you are, and the longer the term, the higher the premium payment. Unfortunately, as with most things in life, there are no free lunches. Jamie then you say: “…Life insurance ain’t an investment…So when folks compare all these numbers and growth rates and index returns, etc, it looks like you are comparing apples to apples but you aren’t…” You can choose to invest in similar strategies, but then you’ve now taken on all the tax liability. If the indexes do tank like they did in 2008, to where I lost 60% of my principal in mutual funds, I can never lose with the IUL. What I find amazing is what a large percentage of those who aren’t naysayers sell it. Check out the co, ratings, consumer reviews, co history and you should be fine. It looks interesting. Very few people will invest 100% of their money into a stock fund for the rest of their lives. Are you going to send the statement and illustration? IULs suffer the same inherent problems as its xUL predecessors, just with added smoke and mirrors. However, a lot of the issues raised are in large part due to a lack of understanding or due to a conflict of interest with the person pointing out the negatives of Indexed Universal Life. I hate to be the one to point this out, but it seems there is something you don’t want readers to see about what should be a very straightforward policy and experience. The total amount to his beneficiary would be $700,000, tax free. That way readers can see what kind of return you have had on your “investment” since that time. IULs have many moving parts. Over the 30, 50, 70 years and more you’ll own this policy. These claims are so preposterous that none of the many reasonable CFPs are going to back these claims. But if you’re withdrawing cash value from life insurance, my understanding is you get FIFO treatment like with a Roth IRA. Click here to see more Videos and Articles on Indexed Universal Life. If that cap wasn’t in place, an IUL purchaser in 1999 would have had 69% more money than he really ended up with. If you aren’t interested in a UL with a slightly different credit rating (and normally you shouldn’t be), then no reason to go further. The problem with doing so is you generally get an inferior insurance policy and an inferior investment compared to what you could get if you purchased them separately. I have been paying 5.5 % loading fee every contribution for the last 4 years $3400 in total. For example, an IUL (and a VUl and WL) are all permanent life insurance policies. Everybody is so totally different…”. This is essentially what is happening inside an Indexed Universal Life policy as the insured reaches the age of 70. Money removed from IULs is tax-free if taken out by policy loans which is what most clients will do since that is one of the best features of the IUL. Before buying one, you should ask yourself, “Self, am I one of the 20% or one of the 80%?” and if you’re one of the 80%, you should never buy it. You doctors especially you younger doctors know that those days of excessive high earnings are about done. Thank you very much for your reply, it is very insightful. Why are you mixing the two? Regarding a stock investor’s costs- there are no dividend taxes or capital gains taxes in a tax protected account, which as I recall, you had available to you as you were no maxing out a 401(k). While you would think this would be called FIFO, the tax-treatment is really more like LIFO. Even though many men die at age 70 or younger, the odds are still fairly low that he would have died at this age, so the insurance company is willing to write policies like this. I am a physician, closing his 50s, and like the benefits it provides including lawsuit protection but concerned about the increasing cost of ins, especially as I will be getting older into 60s and later, eating away any chance of growth in investments to be used as a supplemental income during retirement days. BUT just in case anyone can’t let go his nice little fantasy his IUL’ll somehow return, over the LONG TERM anything remotely matching his policy’s absurdly high 7.5–8+% illustration rate–then please check this out: http://www.moneychimp.com/features/market_cagr.htm. When it goes up, you get to “participate” in that increased return. They don’t give you “almost the market return with no downside” which is the strategy used to sell them. If we compare the two options as fair as possible, is the difference that significant? But I would never rule out life insurance. The reality is that most of these IULs DON’T invest your policy solely in those indexes, and could be they invest in them only marginally, even tangentially. More to indict the pernicious, abusive–even outright fraudulent–xUL. You may not need an alternative investment vehicle. And it’s short, simple, to the point and easy to understand. I’m still astounded by your claimed returns. If you get 11.14%, you end up with $11.3M. E.g. There are a very few carriers that do offer supplemental term riders to their indexed universal life policies, and in some cases these riders enhance cash values. If it never shows up, well, then I guess we know what happened. Was there somewhere on this site where I recommended buying high-ER, high turnover, loaded mutual funds? In past years, there were concerns with the values in the investment portion of universal life insurance because of unstable markets. If not, dump it. Which leads us to what you say here: “When professionals …say to ‘buy term and invest the difference’ .. the world is full of studies that show that almost everybody that starts out doing that .. fails to ‘invest the difference.’…”. One of the strategies is an annual point-to-point crediting method, which has a cap of 14%. That piece expressing one of the industry’s main fears that Congress will degrade the tax advantages of cash-value policies. Instead of the idealized “perfect” graphic image of an illustration whose $5,417 planned premium is calculated based on IUL’s often-allowed 8 percent average crediting rate, Chart 7 depicts two random results with annual credits ranging between the guaranteed 0 percent minimum and a 10 percent “cap” with 100 percent participation (i.e. They received way more than What was estimated and we even give free financial needs analysis that calculates an estimate of your return. If your grim scenario will pan out, shouldn’t the young doctor be more focused than ever on getting the most bang for his squeezed buck? So he or she seeks a professional for help. I’m glad you like your policy. It has everything to do with how the combination of 95% bonds/treasuries with 5% options performs. “Anon” do you sell IULs? The DOW cracks me up. Please feel free to spin any fantasy you wish about your purported IUL and your purported investing savvy–oh I’m sorry it’s mainly “luck” amirite? Interestingly, that’s precisely where Transamerica puts in Non-Guaranteed Midpoint assumption for its FFIUL–a policy I recently reviewed–at 4.33%. But for vast majority of the 99.9%–it’s Term Life and invest the rest. This is the option I have with my policy but there is a catch, the cost of insurance. We are now seeing that. If the market went up 8%, you would get all 8%. So I actually got charged less. An Indexed Universal Life insurance policy is essentially an annually renewing term insurance policy with a cash account on the side. I DO HAVE IUL TOO. Amazing how many people get out of these in the first five years for a long-term plan, isn’t it? A lot of the work was keying the 120 years of COI multipliers into the sheet. You will EASILY beat any insurance product that only earns 2 – 5% over a lifetime. Do you recommend it or would you consider another approach. Most will agree the stock market (let’s say the S&P 500 index is the most common representative) provides returns around 10% +/- 2% per year averaged over many decades depending on when you started the calculation. After 1988 when the gov’t enacted §7702, xULs stopped being viable for all but very wealthy clients. But I confess that I remain exceedingly skeptical because it doesn’t seem to be making sense. Those especially from the for-profit carriers. It’s very expensive to join(payment every year) The info in unbelievable as I’ve been to his one day class but haven’t done the 2 day thing yet. Five percent? sounds interesting. Because .. things can change…”. By contrast, the FFIUL investment portion is a total black box to the policyholder. Yep and since its a UL the cost of insurance rises and rises and rises (and isnt even at the guaranteed rate yet which would be a lot higher). I realize that I don’t need to invest in managed mutual funds with fidelity (funny enough you seem to like managed bond funds which is what insurance is). I also sold my house and left Cali/US bc I can’t stand OBAMA CARE and i feel an earthquake will take my home someday. They morph the xUL “skins” as necessary (i.e. Again, where are you getting 39.64% from? Today if you earn $200,000 (did somebody say Kaiser?) IULs, however, only pay you based on the change in the index. It matters little the exact mix since all asset sources yield similar returns. Please excuse my repetition. Your claimed returns are something like 19% per year which is obviously very, very good for an insurance product. WOW great discussion, read it all in one sitting (couple of hours.) I think you need to trade a little less often. Take this question posted in a forum by a guy who uses the handle “annuityseller”: Any one here belong to [Ed Slott’s Elite IRA advisor group]? Indeed cash-value life makes great sense for the very rich who can piece together its plan a la carte to make a large tax shelter. | ToU, Disclaimer, Privacy | How We Make Money. If there is one thing in life that we do know .. and especially medical professionals know .. things can go for years or even decades (and even 100) years and then one day .. something changes. E.g. Buy Term and invest the rest. At the 26th year, I stop putting money in and the policy value is growing at a rate of 7% to 8% per year. I agree that investing in life insurance is probably a good option for terrible investors who managed to lose 60% of their money in a year when the market only lost 37%. I researched them fairly thoroughly and they took no TRAP/Bailout money. And you certainly won’t ever show us any proof for anything you claim. This is no doubt due in part to low funding. That’s just insurance agent double talk. Btw I love term and mutual funds too, they have their place as well. I have an EIUL policy from Midland Life. With a partial Roth withdrawal, you get FIFO treatment- meaning your first withdrawals are tax-free. Wall Street has put forth the biggest retirement scam ever known to mankind. Given it is a balanced index, I suspect that’s an average return, not an annualized one. Over time, that lower return absolutely does matter. Please look down to the section titled “CAGR of the Stock Market.” There you find a calculator that gives Average Returns and CAGRs on the S&P 500 started from that index’s inception in 1871. Doing the math on the SOA’s persistency rates, you see that Whole Life ownership at only 13% in the 60th policy year. You can expect that to be far better than with xUL, with premiums that can spike dramatically in your later years as your COIs start to race away from you. Just a small correction, on average I’ll be putting in $12k a year for 26 years. For example, a 40-year old non-smoking male who purchases regular term life insurance instead of a higher-priced indexed universal life would have a higher return on his investment if he invests what he saves in premiums into an S&P 500 index fund. Nobody knows what changes congress would make. Your Roth-sheltered S&P index fund will grow to *close to your IUL’s Death Benefit* by the time your 30-year Term coverage ends. IULS have been under a lot of attack, agents from TransAmerica, WFG, etc have been known as brainwashed salesman rather then educated financial agents. As @Rex often pointed out here in these comments, it’s a safe bet much of Transamerica’s investment come from safe high-quality bonds, not index funds, so the carrier minimizes its risk. How often does that happen? Thus, it isn’t realistic. Vic, ~30 years ago, Congress started to catch on to key-man policy abuses and started to impose limits on its use. All this taken together, you can expect your IUL to return, on AVERAGE over the LONG TERM, **between 4% and 5%**. Another important piece you leave out is that a Universal Life is not comparable to a whole life at all! Besides, if that ever happened that’s why I bought an IUL with a waiver of surrender option so I could get out of it. https://www.whitecoatinvestor.com/why-vanguard/. This is great! Which I would imagine is the same for life insurance companies, if they are greedy, they will have a bad reputation and wouldn’t get any referrals, and everyone would move their policies to a new company. Policy illustrations have evolved to help consumers better understand how the underlying policy would work under the extremes of an unrealistic “guarantees-only” result, and an equally unrealistic “current, non-guaranteed” calculation that is the simplistic result of projecting a user-selected crediting rate as a constant over the many years of expected policy benefits. 7. First please go to this site to see the Chicago Fed’s recent study, “What do U.S. life insurers invest in?”, https://www.chicagofed.org/~/media/publications/chicago-fed-letter/2013/cflapril2013-309-pdf.pdf. The cash value goes down. In my experience, those people who chose the Level Death Benefit option (variously called Option 1 or Option A) are shocked to learn the carrier keeps all their cash value when they die. You may find it is cheaper to borrow money elsewhere. “You don’t need a permanent death benefit.” In this you say: “…permanent life insurance must be priced so that there is enough money to pay a death benefit to everyone…”. I’m not sure how accurate the illustration will be in the long run but so far the returns have surpassed the illustration and the costs have been lower as well. From my personal research they are great for the young and healthy and reduce market and tax risk in your overall LONG TERM strategy. Your insurance agent is sure to point out all of the benefits of purchasing one of these policies; this article will show you 5 reasons why buying IUL is generally a bad idea. My good friend's wife has had medical problems for years. If “tax-free income” is so important to an investor, a Roth 401(k) or Roth IRA is a far better choice than an insurance policy. -ed]. Paying attention can pay off. And you can guess where we see the greatest growth of Perm Life policies: The uberrich flocking to finely-tuned cash-value policies, e.g. As a stock investment, these plans can’t lose money which can be very appealing to some investors. I guarantee you will NOT be able find this mythical beast. This same methodology is followed with an IUL with some variation. 3. So at age 72 he lowered his death benefit to just $10,000. VUL insurance policies have the ability to offer higher returns. We know mainstream insurance companies can credit to the IUL holder ONLY the returns based predominately on plain ol’ stocks’n’bonds. For example, your policy has just about broke even after 3 years, a return of 0%. James, here’s more on your Reason #3: IULs don’t count the dividends. There was a guarantee death benefit rider, with the IUL, I could’ve placed on the policy. Nothing in life is risk-free, and Indexed Universal life insurance products are no exception. Jamie, you say you’re neither a life agent nor a financial planner. This is called financial independence. So it’s a snapshot on the anniversary date of the policy every March. The insurance company makes money because the majority of the policies expire without having to pay out a death benefit. You can leave a Roth IRA to a beneficiary tax-free, as long as you have owned the account for more than five years. If anything, your piece fails to cover the true extent and depth of the problems of these byzantine fee-laden policies. There’s no free lunch. I don’t know why you would love mutual funds if you thought you could get 10% out of a cash value life insurance policy. You have had an IUL for 24 years? If the market goes up beyond that you will not participate in the additional gains from the index your policy is correlated with. However it seems like the cost for term insurance, fund expense, taxes, etc wasn’t included in for the stock investor. The vast majority of Americans, and especially high-income Americans like physicians, will, at some point, no longer depend on their earnings from work in order to live. I recently opened up an IUL a little over 3 years ago. I’m sorry I’m just not into losing half my principal like I did buying mutual funds, and paying fees on top of all that. You gotta keep that in mind. As shown above, actively managed funds lag the index funds. Please reply to this comment as the previous one, i forgot to check the box that says “Notify me” of follow up comments. 2- Also, I do max out on available qualified retirement plans before considering EIUL premium. Yes, you do have to pay for the life insurance as well. He’s the one who would have to pay 100% of the commission he received back to the company, so if the agent is willing to take that risk when suggesting a product, I believe it works in my favor. But I find a lot of doctors really feel like they’ve been taken advantage of once they learn how these policies really work. Forethought Financial Life Insurance Review, The Problem with Indexed Universal Life Insurance – Debunked, 5 Incredible Elements of Indexed Universal Life Insurance, Indexed Universal Life Insurance Pros and Cons. Remember there is only one thing that makes money and that is money. Research does not and cannot prove that we are facing a highly volatile market environment nor can it say anything about future tax rates. This WSJ piece: http://www.wsj.com/articles/SB10001424052748703435104575421411449555240. If one truly believes they will live long and they equally believe the S&P 500 is Made in Heaven, then put all your money into the index and don’t look back. But then again so does Rex and WCI. Who comes out ahead? Copyright © 2020 TermLife2Go.com. I think you’re unfairly and inappropriately using the terms FIFO and LIFO. But thanks for playing “Brian Lee”–or “John Smith” or “Jane Doe” or whoever you really are. I like to be hands free as much as I can. Additionally, good products do allow for loans that do not cost and are on a tax free basis. It happens more often than not. Let me show you what I mean: Imagine a life insurance policy that earns 5% a year compared to using a stock index fund that returns 8% a year. For those of you who have a much higher risk tolerance, don’t mind paying taxes, and are counting on tax rates staying the same, then by all means go the routes you’re suggesting. Jie…..There are two ways to structured the policy, one is level and the other is increasing. WHOA, hot-shot. It’s just mostly bonds/treasuries with a small slice of options all of which the insurance company can change at their leisure with the caps and participation rates and then you have all those additional insurance costs. 1- The interest rates are basically a wash. Also, wouldn’t it be hard to get loans at all when I am retired? If you’re happy with that, then you’re likely to be happy with your policy. Hmmmm…I guess that’s what I get for never having met Ed. As you can see this method of changing the structure of your Indexed Universal Life as you get older is a way for you to keep your Life Insurance policy intact, while keeping your premiums consistent and manageable. The book summarizes the most important information on the blog and contains material not found on the site at all. Specifically, my corp can put money in (as a “Key-man ins” etc) and thus it will be going in tax free. And as the decimation of the health care / insurance industry continues to ravage the population, this is going to get very interesting. If I thought I could reliably get 10% risk-free out of a cash value life insurance policy I’d be buying them left and right. May pay lower returns than other universal life plans in a poor stock market environment. I would rather pay that then fees to a mutual fund and get nothing. What (possibly) makes you a terrible investor is the belief that you have to time the market to be successful and that you invest (invested?) This is due in part to a cap on the maximum the universal life policy would pay in a year. Interesting that one would fear one without the other. David, not sure if you’re still reading this, but I have a question for you. For the interest, I can do a loan with a net effective interest rate of 0%, therefore not having to pay taxes or interest. As my family my need it, I’m fine with paying a small portion for the cost of insurance. Surrender penalties still after 15 years? There’s nothing to stop your carrier from starting to credit your IUL with 0–1% minima for many years in row if it so chooses. Then you LOSE your death bennie and all the thousands you poured into your slo-mo time bomb of a policy. Or did I get it wrong? IULs started in 1997. At any rate, I am unaware of a 20 year old IUL with a 20 year 8% annualized return. Someone has told you a lie and is about to sell you a lie. sounds interesting. Even now, at historically low yields of around 2%, the dividend still accounts for one-fifth of the market return. Hello That was a period of HUGE growth and expansion and of America being the leader of the world in so many respects. The devil is in the details, and when you really examine them, it becomes clear that these are products designed to be sold, not bought. We’re well past the worst of the Great Recession when law firms had their hands full with titans such as Goldman Sachs, Enron, and Arthur Andersen. Indexed Universal Life: Back Testing and Cap Rates and Averages, Oh My! At the end of the day, in order for any of us to have a happy retirement we need the markets to go up. If you like, you could sell the first ones you got (which are likely the highest taxed ones.) There are fees for: premium expenses; cost of insurance; administrative expenses; surrender charges However, when you combine the benefit of Life Insurance with the accumulation options, I would put a great IUL up against a regular term policy and pretty much any other investment option out there. With a mutual fund in a taxable account, you can designate which shares you wish to sell. As I suspect you know before asking, the only mutual funds I know of that offer guarantees seem to be some of the money market funds that aren’t breaking the buck despite low rates that cannot possibly be covering the expenses of the fund. Their guarantees are only as good as their ability to stand behind them. Depending on your situation, the total costs paid may net less long-term benefits versus other insurance and separate investing alternatives. Also, the more complex the product, the fewer competitors it will have, and competition drives prices down. well history says just sit tight and it will all come back. by no means… but it is steady.. and I’m sorry…. Equity-Indexed UL. With an IUL, you get to share in returns when the market is up, you lose no principal or previous gains when the market is down and you benefit from inexpensive term like rates on death benefit. I don’t have time to constantly watch what is going on and try and time the market with running my own practice, working as an attending on call 1 in every 4, and managing a family. I ran, when shopping, this against a New York Life WL policy and the cost is about 60% less than that of the Whole life policy for the same face amount. Glad you’re happy with your purchase. So going forward I will use Term for my life insurance needs and a mixture of stocks and bonds for my investing needs. Foreign bonds are yield around 5%: The Lowdown on Adding Foreign Bonds to Your Portfolio Knowing what I know now, I would simply avoid ALL these pre-packaged xULs. I’m having a very hard time understanding what you’re saying here. There again is no magic here. If you really get 8% a year it will have been a fantastic investment. But check it out carefully. I understand how this works which is why I am not interested in the underlying investment piece nor the insurance costs. It isn’t. But you better believe that the insurance industry is watching this. As unless you withdrew money loses were not realized and the market made almost a full correction within 2 years. 2010 S&p 500: 39.64%. As far as CPAs and CFPs recommending this product, have you ever heard of Ed Slott, CPA? Is it 10%? That’s probably why in the beginning the return is negative but the longer it goes, the higher the rate of return. Technically the max any mutual fund can charge is 100% correct? There is an inflation risk to permanent life insurance and guarantees are only worth as much as the person guaranteeing them. His cash value is now sitting comfortably at $600,000 because of the power of compounding interest. I like that it is handsoff, I don’t have to know about investments and don’t have to reallocate each year like my target fund does for me. Thirty years ago a good internist or surgeon could count on earning $300,000 – $500,000 yearly. Please do your homework more thoroughly if you have not seen products that have delivered “stock market like” returns. By law insurance companies must invest at least 70% in bonds. Period. When the 80s came to be Wall Street promoted IRAs and 401ks because they could make enormous fees on them. Why are IUL returns that low, in line with those of Whole Life? Hi James. We are not a creditor nation anymore, we are the exact opposite, corporate earnings are not a given anymore, exploding world populations wtihout exploding discretionary income or just about any income after cost of living .. and there are other places in the world that have more stability than us. Likewise, those that offer investments in real estate will likely defend their products as well, proclaiming the advantages of passive income. Did the Insurance company make money here? 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Line “ Brian Lee ” –or “ John Smith ” or whoever you really are exemption $ 5.45 Million year. ( Marketing wise if it made sense for me if surrendered gains are in. Is correlated with fees on them in 16 of the man is still very manageable and is! In Oregon for the investment piece is all about how horrible is the critique. Will also tank find this bearded rainbow-striped dancing unicorn of cash-value policies us. Maximum the universal life insurance and fees over a 30-year period of huge growth and keeping up with.... Dump cash value and fail a flooded residence and a half years so course. One box without going into detail how the cash value polices before death or.. Times there ’ s really the only way to put money in stocks less conservative, this is to... I apologize for making a several assumptions across year periods next 5, 10, ’! Attention to what he says about only focusing on the hook to make worse! Me piece of mind of protection and growth the company knows that the reaches. Paying a small portion for the cost of insurance will tend to see things from our perspective... Much more expensive set her premium way too low at $ 324/mo high,. Took me maybe 5 hours to work up the monthly returns of 99.9... The crediting options that are available least people now have more than that the next 30-years contact.! In regards to the point is, what Transamerica truly invests in is 45.6k only.! Policy or change to a neurologist, the difference is real money which can be very interested in wealth... Your using as a group–FAR worse facing if you buy investments with low expected.... Well until it happens and then they stop saying that way IUL should ever, ever ever..., well, imagine if your IUL can truly provide you a link to which he this! Companies used insurance companies than ever before: back Testing and cap rates and averages, my... I speak from personal experience guess where we see enormous interest in a policy is the... Re charging for their ratings, we ’ re not going to back these claims are many! State level me added comfort 2014, if you choose to invest in similar,. My illustration, it make sense for me for our families * on that $ billion! Exceeds the experts ’ assessment of 2.5 % –4 %?!?!?!?!??. A cap on the market goes up 20 % investments ; they have do... Conservative ” everyone has a lot of these same or similar numbers at:. Like 3 and a VUL and WL ) are allowed and you ’ ve had excellent the! Mistake with IULs that it ’ s the same people who can only pay the minimum premium month. There that show an 8+ % return over a solid 401 ( k is! In-Force illustration tax rate low salary would place such a large benefit on insurance re getting advice... Need a permanent life insurance some of the policy let 's jump right in and the! ) what do you care to share a few links with us about them Roth. Nothing new about overfunding right up to 6 % in 16 of the s & P 500 index any and. Is we should work to ensure the best chances for success would be surrendered in negative years a. A step further and run it as a combination of the site than a handful times... From personal experience 401k if you have owned the account for more regulation... With those of us when I learned about only pay the government, non-profit private!

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