You can also design an IUL to be way more flexible and cost effective for families. You can also pay in larger amounts of money for more years than what you showed on the third illustration in a IUL.

@LIFE180

2 ай бұрын

IUL being more cost effective is a myth perpetuated by uneducated IUL agents.... You didn't answer my questions. You are proving you really don't understand whole life by evading.

@Seccheus

2 ай бұрын

@@LIFE180 the myth is that WL is cheaper. You can't even see the WL cost. WL is not transparent. The careers hide the cost. Show us the cost of WL from your best CV Design!!!!! Prove that it is cheaper!!!!

@Seccheus

2 ай бұрын

WL is not transparent. The carriers hide the cost!!!

The Debate is settled buy Term INVEST the Difference

@LIFE180

2 ай бұрын

No....it's not. BTID is horrible kzread.info/dash/bejne/p3-TyZeDeN3QXco.html

Great video Chris. Thanks

@LIFE180

Жыл бұрын

Thanks for the positive feedback!

Could you explain what the MEC limit is for each type of policy? Especially how/if a MEC limit is affected by a front load. Thanks for the informative video!

@LIFE180

Жыл бұрын

The MEC limit is impacted greatly by a front load. The only way to load money into a policy in year 1 is to use a term rider (because you need more life insurance to avoid the MEC). The calculation for MEC is very complicated, based on age, health rating, policy structure and health rating. They don't give you the exact calculation. Each company has software that you plug information into. You just need to keep playing with it and trying different levels to optimize.

Great Illustration 👏 BUT 🤔 That DROPOFF When The Rider Left The Building 😬 YIKES 😬 Almost TWO MILLION Left The Building 🏢🤦 Now Please Should Me Something Even BETTER THAN That Last Slide That YOU Loved So Much❓❓❓⁉️⁉️⁉️ 🧐 🗣️ Thanks Again 💐 I'm Very VERY Grateful 4-The Knowledge❣️

@LIFE180

Жыл бұрын

Yep. If you wanted to keep it going on the DB, you could. This was just about max CV. Keeping more DB would come at a cost. That cost is worth it for most, but that wasn't the purpose of this specific video

Hello Chris, thank you for the educational videos!! They are extremely helpful. One question I have is, can you add large amounts of cash into a policy at any time? For example, if you borrow against the cash value and make money, can you reinvest those profits back into the policy for added growth?

@LIFE180

Жыл бұрын

There are limitations to the amount you can add to the policy. It varies based on how large your loans are, how fast you pay them back, how the policy is designed, etc... but when you maximize 1 policy, you can absolutely stack another policy on top. Always optimize the first policy, then add another one later, rather than building a policy for future potential.

I replicated this similar scenario (Client age, male, premium commitment and schedule in an IUL chassis at 6% and get better results, by alot.(Company illustrates 7% by default) Ran at 6% even though the 10yr history is actually over 8% return. So the upside is stronger on the IUL, for sure. It could also underperform further than 6% and be closer to wholelife results. I get theres a alot of IUL getting sold for premium solves at high rates that may run into issues in the future. But the IUL chassis is still vastly superior to whole life, in most scenarios but specially long term cash value accumulation.

@LIFE180

Жыл бұрын

The illustrated upside is a joke. Regulators are changing regulation because they never perform as illustrated. I am not going to debate IUL vs Whole Life on a comment thread as it would be impossible for things to not get lost in translation, but I will say that anyone with common sense can quickly come to the realization that IUL doesn't make sense. It pays higher commission rates It supposedly provides more upside They can conservatively give you 6% when the life insurance company is having a hard time getting 4.5% in their own general fund. IUL is simply a UL product with an options strategy attached to it. It's like putting lipstick on a pig. The actual performance of the index has little to do with the performance of the product. It all boils down to options budget (created by the general fund), and option costs (created by the market and supply & demand). If IUL is far superior, why did virtually NOBODY (less than 1%) actually EARN upside on the illustrations that were sold during the greatest bull run of all time? Check out the #IULchallenge

@chrisholly12

Жыл бұрын

Stop funding that IUL at age 60 and look at the guaranteed page…Pull income and look at that page …Uh OH!!! It WILL NOT earn 6%-7% EVERY year!

@oldporkchops

10 ай бұрын

I am not an insurance agent but I did take a look at an IUL and Indexed Variable Life policy illustration lately just out of curiosity. Even at 6% or 7%, both IUL and Indexed Variable Life lapses when the insured is past retirement. I'm not sure who in the right mind would want to buy a policy that eventually lapses. Millions paid into the policy over 30 years that eventually is worth zero. Worse, because CV is $0.00, the DB, which are supposed to benefit the beneficiaries, becomes $0.00 too. How can agents who sell such policies sleep at night?

Awesome explanation on basic policy design. Do all mutually owned insurance companies allow for front loaded policies?

@LIFE180

Жыл бұрын

Most major mutuals will allow a front load into the policy. However, they all vary as to the amount they allow to dump in relative to base premium. There are also term blends that can be done with certain companies, but those have drawbacks as well. I'll do a video on that soon.

I understand all you are saying with the different methods. I am usualy writing WL policies for people in their 50s and early 60s so there is only about 10 yrs mabye 15 of funding time so I have been using 80% illistrations is hard to get 90% at this age....I do also if they have the avaialble liquidy try and front load the policy and see how that comes out but I do try and keep the base policy premium as low as I can as they head into retirement. DO you feel thats a good approach or is there something I can change?

@LIFE180

2 ай бұрын

That's a great approach. Anytime you can front load, especially with older people, try to keep the base as low as possible and the term rider as low as possible to reduce costs....

In the front load example after the term rider drops off, the premium drops from $10000 to 8572$. What is the breakdown of premium dollars (pua/base/term).

@LIFE180

2 ай бұрын

The reduction of premium is the fact that the term rider dropped off

Thanks for your informative videos, i am trying to find out what the rate of interest and dividend they pay. I am not able to

@LIFE180

8 ай бұрын

No agent is going to get into specific company details and all companies are different. It's a compliance thing... if you want to learn, set up a clarity call and my team can give you whatever info you want. Life180.com/clarity-call

I like that front load method however based on your illustration from what I heard from another agent, at age 51 when the DB drops from 2mm to 700k - that's puts it as a MEC violation. Is that true?

@LIFE180

10 ай бұрын

No, that's not true....

Hey Chris, thank you for this amazing video, I have a question, if I do a front load policy, should I do 40-60 or 10-90 ?

@LIFE180

Жыл бұрын

Depending on the size of the front load....feel free to reach out and we're happy to do a deeper dive for your situation. Calendly.com/_life180/claritycall

@miguelpc3314

Жыл бұрын

I would like to start with 40k up front then 10k per year, what would you recommend?

@LIFE180

Жыл бұрын

@miguelpc3314 still many variables....email Chris@life180.com and we can go back and forth there or hop on a quick call

Hi Chris , great explanation for beginner like me, if the client does not have money for front load, what would you recommend , 40-60 is what I'm assuming, Also what exactly is the name of that product ?? Let me know please Cheers

@LIFE180

Жыл бұрын

Me and my team don't provide specific advice on comments. It's a compliance thing. If you want specific guidance, we are happy to help. Just email Chris@life180.com or schedule a call calendly.com/_life180/claritycall

@jimcrowley1709

Жыл бұрын

These are great instruments if designed properly. The average person needs to really think about what your needs are BEFORE you buy one. --These are really pre-engineered trust agreements. Do you need one to pile money into it for protection against people who want to take your money it? Perfect if you can’t set up an irrevocable trust! --Do you need a way to pass your money on to your airs non taxable because of gifting limitations or perhaps a handicap child you want to provide for? --Do you have a need to borrow lots of money on a revolving basis? --How many pay periods are you comfortable with and can you really fund them and do you really want to fund them long term? --Depending on your age and pay periods and company chosen, when you hit 75 years old you won’t be allowed to put money into the PUA portions except for dividends generated. --Remember these are NOT investments.

So basically, I've got a couple of questions as a new life insurance agent. Looks to me by your illustration that if a client has a short-term because of age to fund the policy, the 1090 might be better, whereas the client has more years younger. The 4060 plan looks better, and then if the client happens to have bucket of cash to front load, then your front load version works? Also, I'm wondering if you compared the guaranteed rates on both your whole life and the guaranteed rates. If there is such a thing on the IUL's if the whole life would still win?

@LIFE180

11 ай бұрын

It's not quite so simple as that. The 10/90 vs 40/60 or any other blend conversation is much more involved. You have to take short term liquidity needs along with long term goals and objectives and come up with a plan that meets both to the best of our ability. IUL will never win this battle vs whole life.

On a 10/90 policy can the $10000 base be paid annually with the $90,000 PUAs being paid in on a monthly basis?

@LIFE180

5 ай бұрын

If you set up the premium as a monthly payment, you can do it, yes.

I was just looking at an IUL policy and there is a difference and it’s not apples to apples but I did an initial 54,975 and followed it up with 10,905 a month and was able to keep that up until age 65. I started with a 36 year old male. It puts your front load illustration to shame. In part because with the one I ran you can keep up the 10k/ year premium payment. At year 30 the policy illustrates the following. Death benefit 1856998 Policy values 956998 Looks better to me. Remember I only started with 54k for the initial lump sum. Then continued with 10 annually. Things are not all the same. It’s about what your clients want. This is also the non-Guaranteed side just like your non-Guaranteed.

@shawnmcintier6110

4 ай бұрын

My example is better than what you call your best.

@Seccheus

2 ай бұрын

​@@shawnmcintier6110 probably

For 10/90 policy first year dividend is 483 and 40/60 policy first year dividend is 1110, while 10/90 has 2k more cash value than 40/60. Same with the other years 10/90 has more cash value but much low dividend, how dividend is calculated? If it’s the same dividend scale for those two plans, suppose higher cash value gets more dividend?

@LIFE180

2 ай бұрын

Dividend is calculated on base. PUA year 1 will be more liquid but the dividend isn't the same. That's why doing a front load with a higher base is a win win whenever possible. High short term liquidity with SPUA rider & higher base = more dividends long term.

On your front load policy design whats the split did i miss this

@LIFE180

4 ай бұрын

It varies based on the amount of front load relative to the annual premium

So, are we front loading the 10-90 or are we front loading the 40-60?

@LIFE180

Жыл бұрын

Depending on how much the front load is. 10/90 policies aren't always an option

Do you put PAR cash value policies together for Canadians in Ontario? If so, how can you be contacted?

@LIFE180

Жыл бұрын

Email Chris@LIFE180.com and I can connect you with people I know up there!

@marcin7570

Жыл бұрын

@@LIFE180 can you send me their email address and contact please

@LIFE180

Жыл бұрын

@@marcin7570 I will when you email me. I'm not putting on in this string.

What if you dont have 100k? Is front load still the best to do?

@LIFE180

10 ай бұрын

Anytime you have cash you can front load, it always makes sense. Front loads are limited based on annual premium amounts. Feel free to email Chris@life180.com and I can help you run illustrations if you are looking for some ideas

When you borrow from your policy, is it coming from the insurance company or a bank

@LIFE180

Жыл бұрын

The insurance company

@LIFE180

Жыл бұрын

And you are never borrowing from the policy....you are borrowing against the policy using it as collateral. If you borrowed from it, that means the money would come out of the policy and stop growing. Borrowing against it allows the cash inside the policy to continue growing even after you leverage it

@cyclops9125

Жыл бұрын

U borrow from ur own money and they charge u interest on ur own money. Great deal huh

@LIFE180

Жыл бұрын

@@cyclops9125 spoken like someone who doesn't understand money...

If someone wants to have 2m in Death Benefit coverage but also have a good amount of savings?

@LIFE180

9 ай бұрын

Then do a blend of term and whole life. Focus on the DB first, then do a 2nd policy to optimize for CV

I have my whole life insurance with a major insurance company. Why they never told me I can do this? It took me 8 years to break even. How can I talk to my life insurance agent about this?

@LIFE180

Жыл бұрын

Which major insurance company? Not all companies will do this

Can you show a video that shows how it has better tax advantages. Than doing a term police and investing in a Roth (vanguard voo). Using 500 a month.

@chrisholly12

Жыл бұрын

What’s the Roth going to do in the next 10 years, 15 years?? NOBODY knows.,.. We DO know what the whole life will have. AT that point the term is gone and all you have is “X” maybe. The BEST insurance plan is the one that’s in-force the day you die and the whole life will be there.

@markf.2050

8 ай бұрын

No he can't. Term and invest always wins. If you have taxable income it's because you had real growth. You don't pay taxes on whole life cash value growth because you are not likely to take out more than you put in. You can take out loans, but those are not taxable anywhere because they must be paid back. If you die with a cash value loan, it will be paid back with proceeds from the death benefit. Also, if you die, the insurance company keeps all of your cash value.

@LIFE180

2 ай бұрын

kzread.info/dash/bejne/p3-TyZeDeN3QXco.html

@LIFE180

2 ай бұрын

@@markf.2050 kzread.info/dash/bejne/p3-TyZeDeN3QXco.html

Term Ryder cost keeps going up, relies too much on dividends…not good for me at 51yo

@LIFE180

3 ай бұрын

Term rider cost keeps going up? No. I did a level term. And you can restrict the term expense to 7 years. Not saying whole life is right for you, but make sure you understand it before making that assumption based on a lack of understanding.

Tax benefits of death value?

@LIFE180

6 ай бұрын

All tax free

If only I had $100,000 to front load!

I watched this video last night and commented very respectful and now my comment is gone! Not sure why.

@LIFE180

Жыл бұрын

What did you say? Haven’t deleted anything

@alisajordan2331

Жыл бұрын

@@LIFE180 Commented on the clarification of the policies and that I have scheduled a call for Friday with an agent in you company due to this video. Thank you.

So, basically.... Do a front-loaded 40/60 with a $100k savings injection?

@LIFE180

Жыл бұрын

Front load can typically be 10-15x base coverage.

Where are these clients? What you’re saying makes sense. But how do you get these people that can make 10k premiums, especially in the fluctuating economy we live in today..

@LIFE180

Жыл бұрын

$10k per year is not that much for the average household earning 100k per year... it can be tough, for sure, especially if you have debt. But we have a program that helps people eliminate debt to help you get there. If a household can't save 10% of their income, you need to take a serious look at your spending. If 10k/year is too much and your household income is 60k, simply save 6k per year to start.

I’m really trying to learn and don’t mean any ill will so please hear me out. It’s very difficult not to want to naturally write you off when you say things like “weather this recession we are heading into” and “take advantage of opportunity as we come out of this financial storm that we are coming into” fear selling only works on dumb people… These seem like extremely low IRRs to me. Basically 1% IRR on cash value for the first ten years (BUT YOU DO get a nice DB to go with it to be fair) but then after year 15 the DB crashes so there isn’t as big a reason to accept the poor IIRs… If i wanted to use life insurance to accumulate tax free dollars for retirement, a VUL would make more sense it seems. If i wanted to hold cash to try to time market crashes like you suggest twice in this video, i would be better off in treasuries/ money market funds considering the awful IRR.

@LIFE180

7 сағат бұрын

VUL's are investment alternatives. Whole life is a savings alternative. They play different functions. I don't believe in using insurance for investment alternatives because of the fact that you are just adding additional fees into your investments. When it comes to saving money, you have different needs and objectives. First, your emergency fund and protection. The fees you have in your life insurance with whole life will mitigate and replace other fees (long term care, term insurance, etc...) Second, you want the safe money to beat inflation long term. Whole life isn't sexy, but it has historically beaten bond performance over every 30 year rolling period for the past 80 years. Third, tax favored treatment. Can't compare returns of a guaranteed product to investments where your money is at risk of loss. A tax favored IRR of 4.5% that is liquid is actually good considering the market we have been in the past 15 years. If rates go up or stay elevated long term, those numbers will get better.

There is consistent admonishment in previous videos to not trust the non-guaranteed portion of illustrations but most of this video spends time on the non-guaranteed portion of these illustrations. Why is that section now approximately trustworthy on these illustrations?

@niyazgill691

Жыл бұрын

Thats okay bcz this video is just comparing the policy structure

@LIFE180

Жыл бұрын

Well, mostly because I say that for IUL. It's important to understand all the moving parts of the policy. The non-guaranteed column in a whole life policy will also not be exact over a period of time. It's important to understand the variables that go into producing the illustrated result. We have been in a declining interest rate environment...therefore, illustrations have underperformed as dividends decreased. We are now in an increasing interest rate environment. I expect dividend rates to increase (like they did in the 80's - although likely not as drastically). I could make a strong argument why I believe whole life will outperform their current assumptions over the next decade while they have underperformed over the past 30-40 years. It's all rate environment dependent.

@hanselbermudez7604

Жыл бұрын

@@LIFE180 Saying whole life has underperformerd for 30-40 years is a hell of a statement to make from a wholelife guy.

@fredobills8133

Жыл бұрын

Thanks for the information. I’m a new agent trying to help educate myself and others and I appreciate your content

@LIFE180

Жыл бұрын

@@fredobills8133 glad it was helpful. Lmk if there are any specific videos you would like to see

The goal is to never distribute the cash but access via policy loans, correct?

@LIFE180

Жыл бұрын

Depends on use case. If you are talking retirement income, sometimes doing a withdrawal to cost basis makes more sense than a loan.

Is this whole life or iul?

@LIFE180

7 ай бұрын

Whole life. Never buy IUL - it's the most misrepresented product in financial history

@sergiogarcia7171

7 ай бұрын

They look almost identical. Illustrations and all. So does a whole life have increasing death benefit?

Do I any left for retirement 66 age tax free !!!

@LIFE180

11 ай бұрын

I don't know your situation so I can't say :-)

So the Best CV Whole Life design requires a 100K lump sum up front payment....LoL. All this time I thought WL was so much better....etc

@LIFE180

2 ай бұрын

A policy with no front load can still be better than IUL....

@Seccheus

2 ай бұрын

@@LIFE180 not based on the examples you shared.

The way you present it, it's like the life insurance company and the salesman are doing the buyer a favor. Flip it and show us why they and you sell this product. It's not free.

@LIFE180

17 күн бұрын

I have done plenty of videos on commissions, product structure, etc... Nothing is free...that is true. Including your investments that you make. Every financial product has a fee associated with it, period. When you stop looking at cost and begin looking at VALUE, it makes sense. I sell it now, but I have been promoting this strategy since before I was licensed to sell it. I am a real estate investor. For entrepreneurs and RE investors, it's a no brainer. But it makes sense for most people...unless you have a ton of debt....if so, clear that up first, but buy term insurance in the mean time.

All I heard was blah blah blah

@LIFE180

9 ай бұрын

Really? How so? Are your ears not working?

“To weather this recession we are coming into” I’m open minded bro but so say garbage like this

There is consistent admonishment in previous videos to not trust the non-guaranteed portion of illustrations but most of this video spends time on the non-guaranteed portion of these illustrations. Why is that section now approximately trustworthy on these illustrations?

@LIFE180

Жыл бұрын

It depends on which previous videos you are speaking to. The non guaranteed column in an IUL will not happen 99% of the time because of the internal workings of the policy. With whole life, the non-guaranteed column is based on the current dividend scale being paid (in this case, 5.2%). Since dividend rates are near the lowest in history at the moment, and since whole life companies we work with have NEVER missed a dividend payment over the past 180 years, the current is safer. That said, I would also say that it is important that you learn and understand how these work before putting money into one. Even if it is a little less than current assumptions (which in today's market is unlikely for whole life), i am a big believer of thinking about "what's the upside, what's the downside, can I live with the downside?" I could also make a STRONG argument that whole life will out perform illustrated rates over the next 10-20 years as the interest rate market increases. I just don't do that a lot in videos because I don't want to get people buying for the wrong reasons