Your videos are great. My wife and I had WL policies that had really good dividend rates. However, their only loan provision had a guaranteed negative 1% arbitrage. So, I did a 1035 exchange into IUL’s in 2017 and haven’t looked back since. My IUL’s currently have a guaranteed fixed indexing/participating loan rate of 5% for the life of the policy and beginning in 2027 they’ll have a guaranteed wash loan provision. I find WL to be only better for those who are extremely risk adverse and who don’t want to learn how to actively manage the death benefit in the IUL to keep the costs of the annual renewable term insurance under control as you get older.

@DavidMcKnight

10 ай бұрын

I think that was a smart move!

Great video! very good explanation and comparison. Thank you for helping to keep consumers informed.

@DavidMcKnight

Жыл бұрын

Thanks Mark!

Great comparison! Thank you for sharing.

@davidmcknight8201

Жыл бұрын

Thanks Brandon!

Love the comparison, David. It really answered many questions I had regarding why some of these whole life pundits trash IUL. They simply don't know what they don't know.

@davidmcknight8201

Жыл бұрын

Thanks for your comments Clark.

Guardian & Penn Mutual offer wash loans. Penn Mutual also offers an overloan protection rider at age 75. I own both IUL & WL.

@DavidMcKnight

Жыл бұрын

Are they guaranteed in the contract? If so, I'd love to see it.

@rd94610

10 күн бұрын

@@DavidMcKnightDid you ever get an answer?

Can you explain an entire IUL policy? There are a lot of important information that needs to be addressed.

@davidmcknight8201

Жыл бұрын

I do a lot of explaining in my other video and in my book Look Before You LIRP. Check them out!

i did this comparison, and it worked the other way, i.e WL was better than the IUL fix account, maybe my parameters are different, maybe my wl policy is better than your example

@DavidMcKnight

Жыл бұрын

Send me an email at info@powerofzero.com and let me know which companies you used.

What if you do 50% fixed and 50% indexed in the IUL?

@DavidMcKnight

Жыл бұрын

Then you’ll get midway between the $48k and the $100k in loans.

All ur videos just say IUL beat anything else out there and no one can design something better than IUL.. very reason why started researching for genuine ones and came across ur videos, and now have to go back to finding better info

@davidmcknight8201

Жыл бұрын

IULs work the best in some situations, but not all.

The set up of this comparison seems to be a bit of a straw man argument to me. From what I've seen, most advocates of whole life do NOT advocate for it (or really any insurance product) being a cash flow tool in retirement. I know that's basically the basis of your entire philosophy, but I think you are coming from a very different place. Advocates of Whole Life view it as a volatility buffer in retirement, and would advocate for holding cash flowing assets for income.

@DavidMcKnight

Жыл бұрын

Right. The point of the video was to say that different policies function better in different scenarios. Whole Life shouldn’t be the go-to for distribution in retirement but it does work well in other contexts.

@cscorona1

Жыл бұрын

@@DavidMcKnight Do you have any real world case studies of people actually successfully distributing from an IUL policy in retirement? How did that compare to the illustrated income? I know one of the big knocks against IUL is that retirement distributions illustrate well, but are largely unproven in the real world. Perhaps you've already done this in a video?

@davidmcknight8201

Жыл бұрын

@@cscorona1 Most funding periods are 10 to 15 years at least and not a lot of advisors have been offering these policies over that period of time. The overarching principle with these policies is to illustrate conservatively, manage distributions, and make sure it isn't your only stream of income.

@cscorona1

Жыл бұрын

@@davidmcknight8201 Isn't that the problem though? Without a history, who's to say what is/isn't actually a conservative illustration? I agree that illustrating with the fixed account is as good as a "conservative" illustration as any, but aren't you basically just illustrating a UL in that case? How have UL policies fared in the real world for retirement cash flow vs their illustrations? I believe they've been around a lot longer than IUL - surely there are some case studies for UL retirement income out there? That might be a good "conservative" case study to use given the limited history of IUL.

@davidmcknight8201

Жыл бұрын

@@cscorona1 Well if you have a company that's averaged 7% gross returns over a 15-20 year period through a broad range of economic environments, and then you run the illustration at 6%, most people would say that's a conservative illustration. The question becomes, what gives you a greater return, putting your money in the fixed account, or allowing the company to take that money and allocate it to an options budget and try to do better. History shows that the options budget will push you further ahead.