Hi friends, I've heard that Equity index

Submitted by Anonymous (not verified) on Fri, 09/07/2007 - 09:20

Hi friends, I've heard that Equity indexed universal life insurance can be a very good investment option. I want to purchase a policy that will give me some investment benefits along with life coverage. Shall I consider buying EIUL or something else? Pls. suggest.

Posted: 07 Sep 2007 10:17 Post Subject: EIUL offers life coverage along with investment returs

EIUL is a combination of both the traditional life policies and the market-linked policies. It is a good option for people who want that their life policies to make money for them along with the death benefit. Equity indexed universal life insurance allows the policy holder to choose from the wide range of investment funds available to invest his premium. You can also invest in the fixed account to avoid the risks of open market operation. In that case, your money will only earn the 2-4% guaranteed return annually like the traditional life policies. Juanita

Posted: 15 Oct 2007 05:15 Post Subject: Equity indexed universal life

Be Careful with this product, equity indexed universal life insurance (EIUL) and EIA's are growing fast, I have noticed that most of the Large Insurance Companies with a strong Rating are not advising them. If you are buying the product from a small company or one that has a Strength Rating of Less than AAA from one of the major rating companies (Moody's, Fitch, & Standard and Poor's). I would be careful. It is usually a good reason the large companies are not recommending them. Go with a quality company that has been around for at last 50 years or more and have not been bought out. Check with your state you will get an ideal of how many insurance companies have went out of business in the past 20 years... Remember you get what you pay for. Go with a strong company it's only your retirement... Good luck :shock:

Posted: 15 Nov 2007 09:02 Post Subject: EIUL is a safe investment is properly structured.

An equity indexed universal life insurance policy is a safe investment if STRUCTURED PROPERLY (90% of most regular Insurance Agents as well as CFP's (certified financial planners) will not know how to structure these policies to make them work as a lucrative investment). You will need a specialist in this field that does not structure these based on comission but rather will focus on maximizing your cash value.
In an Equity Indexed Universal Life your money is guarded by a guaranteed floor of 1-3% (depending on which product you use) When the S&P goes up you are credited but when it goes down you will not lose because of the floor. When choosing an investment put it through this test. 1) Is is liquid? Can I access the money when I need it 2) Is it safe? Will I lose my principal? 3) Is there a good rate of return? 4) Will I incur taxes? How much? The reason an EIUL will outperform most other investments is because if properly structured insurance is the only vehicle that can accumulate and can be accessed without any tax consequence. Other qualified investments like 401(k)'s and IRA's defer taxation which makes no sense when it's time to actually access the money, since at that time you will be fully taxed on your withdrawals. These taxes during the withdrawal phase will far exceed anything you saved during the accumulation phase.
An EIUL is not a tax deferred vehicle. If done correctly it can grow during the accumulation phase and can be accessed during the withdrawal phase completely tax free.
A good source for EIUL info can be found at mymissedfortune.

Posted: 23 Nov 2007 05:45 Post Subject:

Equity indexed universal life insurance is a very good vehicle to invest. But you have to do just that....INVEST. I sell quite a few of these policies, and so many people like to use them as a means of cutting, their premium, when they should actually be asking me whats the most I can put into this policy?? The death benefit is just an added bonus, but the investment benefits are so nice, that even the government regulates the amount you can invest before it is considered a modified endowment contract. So I not only recommend that you buy one, but take advantage and maximize your contributions.

Posted: 21 Dec 2007 02:39 Post Subject: EIULs is the investment vehicle for a guaranteed future

I recommend an EIUL 100%. I have been with three of the top insurance companies in the US for the past ten years, (ie. NYLife, Prudential, ING Life, and unfortunately Primerica). The reason why some companies don't sell them because it's new, its hard to market a new product, and their clients have already been conditioned with ULs, Whole Life, Variable Life, Term, and Annuities.

The comments from mymissfortune and knig188 are correct. Equity Indexed Universal Life Insurance policies tie together a retirement plan into your life insurance plan.

I believe the IRS created the 401(k) just to make the hard-working public think they will be saving on taxes such as yearly deductibles, no capital gains tax, and deferred tax incentives. But the IRS is not telling you that you'll be paying income tax when you want to withdraw for retirement, plus an early-withdrawal fee if you want to make a withdrawal before maturity.
However, with an EIUL, you can make a policy loan and withdraw whenever you want after the first year for whatever reason you want and never touch the principle. Since it's tied to your life insurance policy, your policy's face value will stay the same
For example, a 28 yr-old man, in good health, non smoker will probably have a monthly cost of life insurance around $50-$60. So if he was approved for an EIUL with a face value of 500,000 or more, he will have to invest at least $150-$250/mon to cover the cost of insurance. The rest will be used by the insurance company to buy low-movement bonds rated at around 6-8% yield. That's how your money grows. You're not actually playing the stock market, but just "indexing" off of it. Where your money grows when the market climbs, but stays the same when it crashes.

I personally purchased a policy in 1995 at $300/mon with a $1M face value. I took out all of my savings from my 401k, paid taxes and early withdrawal fees and front-loaded the remaining amount into my EIUL policy. In 2006, my wife wanted a new car, so I took out a loan for $15,000.00 tax free from my EIUL. Last I checked, the cash value has grown an average of 8,6% So now, my wife and I have been dropping anything extra income we have into our policies, knowing the more we invest now, the more we will be able to withdraw later. We both want to retire in 15 years!!!

So I decided to get appointed by the underwriters who have EIULs as a product and obtained a surplus and specialty lines broker license so I can market this product myself. I don't recommend anyone to pull out from their 401ks and other retirement plans at all. Just stop paying into it, and invest your payments into an EIUL, let it grow and compare in 10 years how you're money will do. Ask anyone who has a 401k or 403b if they've lost money on it. I'm sure they have, because I have, and it's not fun to see your hard-earned money go down the drain.

If you're not a big risk taker, and want to plan for retirement, I suggest investing into government bonds, mutual funds, and an EIUL policy. Diversify your options and monitor them closely!

Posted: 05 May 2008 02:14 Post Subject: eiul

my equity indexed universal life insurance policy is guaranteed +1% if the stockmarket is down and 12% if stockmarket is doing good, its also tied up with s&p 500. i recommend it for people who think of their future. :)

Posted: 06 May 2008 10:01 Post Subject: equity indexed universal life question

I had a broker come by today to try to explain an EUIL. He did not say anything about a minimum 1-2%. Only that it caps at 12%. He is selling through AVIVA. I have never heard of this company. I just started searching for equity indexed universal life insurance and come across this site.
I am 41. Small business owner. I would consider myself a newbie to investing. I have about $15000 liquid savings. Only about $2000 in stock. 1 year of 401 investing. No credit debt. Term life policies. My business would probably sell for $650000 right now. Land and building value of approx $400000-450000
Dont know if any other information would be pertinent, but want to know if I should truly consider this option or not.

Posted: 07 May 2008 06:57 Post Subject:

Hi lemme tell you...that most of the better policies would offer a cap of within 9% (ie. 7-9%)
Some might just set the cap to be 6%. But most of these polices would give you a min return worth 4%. So, why losing on that 1-2% ?

Posted: 07 May 2008 07:22 Post Subject:


Aviva is a good brand name...all good brand names have one thing in common...they would all maintain a good customer-service standard. But a good customer-service is not always an assurance for good returns when the time comes.

EUIL is vividly clear when the rate of return is predecided. But it is natural for these agents to drag you into something that has no guarantee. Just can't think of any solution if the interest on a mortgage is more than the equity indexed universal life insurance returns.

Wish you all the luck!

Posted: 07 May 2008 08:07 Post Subject: EIUL

Equity Indexed Universal Life insurance is a great product! Of course, nothing is ever guaranteed anyway.

Posted: 07 May 2008 02:47 Post Subject: insurance

Can you give me some advice on which WHOLE LIFE policy i should get?......44 year old, single mom, smoker. 'low-income'. Myson: 15 year old, VERY ACTIVE (LOL) I would something that can build CashValue. Can any 'experts' on this thread, give some advice/ I live in PA. Thanks for your support!!LOL

Posted: 07 May 2008 07:54 Post Subject:

I found a couple other sites covering EIUL. Some say using a life insurance policy to build wealth, savings, investing, etc is not really a good option unless you have maxed out all other forms of retirement investing? Is this a logical statement, or purely opinion? I have always been of the understanding that Whole/Universal life investing wasnt all that great. And that there are better alternatives. I already have a healthy term policy, and the rep showed a policy death benefit of $53,000. So for the $100/mo investing, is it a smart move? Or could I be better served sticking it elsewhere.

Posted: 25 May 2008 07:14 Post Subject: eiul link

I found a link here which might help you..

Posted: 25 May 2008 08:49 Post Subject: eiul

good thing i found this site..... equity indexed universal life insurance is really good especially for kids and protection. for kids they dont have to qualify and the monthly conribution is way less... and also they can get a policy without a cap for instance the market goes up to 20% then your money just does that and you still get the guarantee 1%-4% it depends i guess, but surely a 1% guarantee when market goes down... also depend which carrier u have. there a company there that provide the best eiul so far because they work with several carriers so they give the bes options...its called World Financial Group (WFG).

Posted: 26 May 2008 05:09 Post Subject: yes

yes, thats correct. Go ahead and have good life

Posted: 16 Jul 2008 01:48 Post Subject: equity indexed universal life is not an investment option

Yes.. please listen to this markmallari and do a quick search on WFG and their products. You'll find a bunch of inexperienced people who have zero knowledge of financial consulting aside from memorizing the series 6 and 63 test answers.

EIUL should NOT be looked at as an investment option, it is a life insurance policy before anything else.

Posted: 10 Aug 2008 07:04 Post Subject: EIUL Supporter

Hi to all, my husband and myself purchased an EIUL this year and are very pleased with the plan. We were used to purchasing insignificant things on a daily basis that before we knew it we had already wasted about 400.00/week (just in going out to eat, buying clothes, movies etc...) Today, all the extra money just simply goes into our savings. Really we all just need to educate ourselves on the products that are available to plan for the future. For us the EIUL was the best product. Good luck to all...

Posted: 11 Aug 2008 05:33 Post Subject: equity indexed universal life insurance

Vivi, you are an example before us all :) very few like you actually think about their life the way you and your husband have thought.

Friends, IMO this is a very good example of appropriation of fund, how easily we can curtail bad expenses and can create a fund for our future without more toils.

Vivi I wish you and your family a very happy and secured life. Please, keep dropping in time and again.


Posted: 21 Aug 2008 10:37 Post Subject:

EIUL is the best product out there. If you want to save for your future then EIUL is the way to go. The best thing about EIUL is that is provides two things for you. It provides protection for yourself and family and also retirement when you're old. The only question that most people need to ask themself is if they want to retire rich or poor, young or old. Because retirement has nothing to do with age but everything with money. In my personal opinion, I think its sad how some people dont understand about the EIUL product and talk bad about the produce. If you are smart and want to live in your golden years, then EIUL is the way to go..

Posted: 21 Aug 2008 10:50 Post Subject: Equity Indexed Universal Life

WFG is not bad. Its the people that did not make it with the business are the bad ones. Success through any kind of business does not happen over night. It takes a while for you to become successful in anything you do. WFG is a company that gives people a chance to live again and to become somebody. In WFG you are your own boss. You work for yourself but never by yourself. There are great support and teamwork in WFG. If you are one of those people who like to depend on a boss then thats good you. Just remember.... whoever controls your paycheck controls your life.. WFG gives people a change to take control of their own life.

Posted: 22 Aug 2008 04:04 Post Subject: EIUL

yes! World Financial Group works as a middle man working to link the average American with the investment that best fit them. I believe they are not bias on that aspect, and their agents are free to teach financial concepts to families and provide a non-bias list of investments. plus they strongly suggest that you invest in E.I.U.L. for your future. most people don't plan to fail, they just fail to plan. I believe you can contact an agent at personalfinanceconsultant[at]gmail.com

Posted: 23 Aug 2008 09:24 Post Subject: equity indexed universal life insurance

Hi sushi and plan to win, WFG is just another company that's out there to make business. You two might have had good experience with the company and I'm sure there are many others who have had the same, but the discussion on this thread was regarding the EUIL plans and not of WFG. Hence, I'd request to all contributing to this thread, henceforth, to stick to the subject of discussion.

EIUL, like any other financial plan, may or may not suit an individual's requirements. Hence, one needs to understand his basic needs before investing into any such policies.

Posted: 23 Aug 2008 11:14 Post Subject:

hi ..it doesn't spare us an opportunity to think how WFG would help us..when there are more than one ways we could think of getting returns out of EIUL..but it would be unwise to promote a particular brand name with the slightest pretext of knowing or sharing more about the goodness of EIUL. Likewise, if we study more about the other coverage areas..we might know about newer ways to make our lives safer & thus more meaningful.

Posted: 25 Aug 2008 10:01 Post Subject: equity indexed universal life insurance

I don't view insurance as an investment product.

Insurance is essentially for protection. Insurance is to prepare the policyholders with some emergency funds so that they or their family members can better manage crisis situations.

After protection needs are addressed only then we move on to investment.

If your primary or sole objective is investment and you have high expectation on investment return, insurance may not be your first choice.

However, if you are of the view that protecting your wealth is of greater priority than creating more wealth, then insurance is your answer.

After all, what is the point of creating more wealth but on the other hand losing what we have?

Posted: 13 Nov 2008 06:33 Post Subject: Research B4 Buying Insurance/Retirement Product

EIUL IS NOT a Smart Choice.
What are your goals? Do you have a family? Kids who depends on your income? Retirement needs?

Here's what EIUL Agents aren't telling you:

1) Buys coverage only for you, not family group.
2) Expensive. Avg 28 yr good health $250k benefit is $150-$300/month
3) Policy fee $15-$50/month, 5.5% fee to agent, mortality charges.
4) Withdraw tax free. But they don't tell you it will become a loan and will be deducted from your death benefit.
5) Minimum monthly fee. They don't tell you your policy may lapse if cash values not enough to pay for policy.
6) Insurance company determines your return rate. You have no control.
7) Cannot withdraw Cash Values for first 2-3 yrs. Not emergency fund.
8) They say guaranteed Returns 2% and usually caps at 12%.
* but they don't tell you the policy fees will eat up all the returns
* I have a relative that bought $200K & pays $110/month. After all the fees and expenses, he's left w/ $55 that goes into the (so-called) investment EIUL.

Here's what you should consider:

1) Buy 20 yr term for whole family. $250k parents + $25k child for $60-$150/month.
2) Invest difference of $200 into long term quality Mutual Fund
* Tax Deferred/Tax Free Retirement accounts Like ROTH
* Coverdell College Fund or 529 Plan for your kids - grows TAX free withdrawal and can pass to next child if 1st child doesn't attend college.
3) You choose and control your funds.
4) Age 25 you Invest $200/month 10% for 20 yrs = $153,000
* Keep investing $200/month till age 65, you'll have approx $2.1 Million
5) Daveramsey.com
6) Primerica.com

Research before Investing! Please do not Sign your Whole Life Away...

Posted: 20 Nov 2008 09:40 Post Subject: eiul

There would be a reason why Large Insurance Companies would advise against eiul's... competition.

Posted: 21 Nov 2008 05:48 Post Subject:

There would be a reason why Large Insurance Companies would advise against eiul's... competition.

Please, elaborate your statement. Many like me consider EUIL a good investment option, which also offers death benefits. IMO the big companies try to push equity indexed policies more than the other types of whole and term life plans, since it generates greater return. Also, the agents earn more commission on EUILs.

Posted: 23 Nov 2008 01:47 Post Subject:

if you haven't purchased any product which is combination of equity and insurance then it is recommend that you should purchase one such kind of product.although there is option for this combination,you can buy one term insurance product+one mutual fund (see the rating of MF).may i know your age?o that i will be in position to guide you on this subject matter with more clearly. 8) :D

Posted: 04 Jan 2009 10:41 Post Subject: E.I.U.L.

I have read all of your comments and would like to say that there are many options out there for a person to invest, save and look towards the future! Since the topic has been focused on the Equity Indexed Universal Life policy, I would like to give my opinion and all who read can take it for what it's worth! An eiul vs other investment options is in my opinion, not a hard decision to make for many of the reasons that have been stated above. #1 It is a retirement program that grows tax free #2 Upon all the compounding interest that is accumulated during the years, It all comes out tax free, The only other retirement program that comes close to this would be the Roth accounts but, the draw-back from these accounts is that

Posted: 04 Jan 2009 10:58 Post Subject: EIUL continued

It only comes out of these accounts if you use the money for what it was originally intended for, if not, you're tax as income and in some cases even penalized!! #3 When using this as an investment/retirement account there is a really nice bonus for your family if something tragic were to happen to you. I know there are some people who believe that life ins. is a waste of money but, I say other wise! there are many people mainly my clients that have had their spouse or parent die and leave them with all of their financial burdens to take care of. No one wants to wish their financial situations onto anyone but, indirectly do so without getting insurance for it. That is what life insurance is for!! so, if you can get a Great investment option with life insurance attached to it, it's like killing to birds with one stone, pardon the expression! There are other matters as well, as far as getting an agent that can set this investment up right! I would like to warn all those that may be looking for someone to set up one of these accounts! there are two main ways of doing it, 1 in the best interest for the agent (higher compensation) 2 in the best interest for the person (maximizing investment options). for questions you may contact me at my business email jkenyoncook[at]gmail.com or go to Worldfinancialgroup.com to look for the office/branch nearest you! if you contact an office be sure to talk to a QMD (qualified marketing directer) these individuals have been through intense training and know their stuff! they will be able to answer any questions you may have about an EIUL or any other investment options!

e-mail id deactivated for your safety-moderators

Posted: 16 Jan 2009 06:49 Post Subject:

The financial business is very helpful to the worldwide people and the people get more benefits.if you haven't purchased any product which is combination of equity and insurance then it is recommend that you should purchase one such kind of product.although there is option for this combination,you can buy one term insurance product+one mutual fund (see the rating of MF).And the financial is fully depend upon the marketing field if the shares increase to get more money otherwise loss the money so it is a up and down business.

Posted: 19 Feb 2009 07:49 Post Subject: LSW Insurance

Does anyone have information on EIUL insurance from LSW (Life Insurance Company of the SouthWest)? According to the agent they provide life insurance, cash accumalation and live in benefits (you get the life insurance benefits in case you are critically ill).

Posted: 10 Jun 2009 10:33 Post Subject: Why EIUL is so popular

EUIL, Equity-Indexed Universal Life Insurance, is a very good products in the market now for all levels of people. First, its a avoid-taxes tool for the rich. Through a technique invented by a lawyer in New York and a chemical engineer in California, each dollar spend on this insurance can typically eliminate $9 in taxes. Spend $10 million on this insurance, avoid $90 million or more in income, gift, generation-skipping and estate taxes. Second, it offers a unique combination affortable life insurance with the ability to accumulate cash values that grow with the upward movement of a stock index without the normal downside risk associated with the equities market for the middle income families. Or in an other words, EIUL is an optimum vehicle for accumulating cash for retirement and college funds.
In the final word, its worth to invest into! With the right specialist!

Posted: 12 Jun 2009 12:20 Post Subject:

This thread sounds like a bunch of salesman pushing a product, but with just enough understanding of the product to be dangerous.

Posted: 12 Jun 2009 05:21 Post Subject:

Hi icyzhang,

I'd be supportive towards InsuranceExpert's idea!

Aren't you trying to promote EIUL with the sole purpose of earning business out of this community?

How can a product that's designed to help the middle income families serve the interest of the rich? Won't the rich choose to take more risks in order to maximize their returns?


Posted: 12 Jun 2009 11:25 Post Subject:

Steven, when it comes to life insurance, the rich tend to take little or no risk. This is how it should be for just about everyone with life insurance. Risk belongs in investments, not insurance.

Posted: 18 Jun 2009 11:04 Post Subject: The EIUL is a great product.

The EIUL is a great product if you are looking for a safe vehicle to use for retirement. Unlike 401k and IRA's, you don't get taxed on your retirement income. With 401k and IRAs, when you take it out, you get taxed whatever the tax bracket is at that time, currently it's roughly 35% but you never know what it'll be 20-30 years from now. For all we know, it could be 50-60%. Imagine your hard earned money being cut in half when you need it most. The EIUL allows you to take loans on your cash value and allows your principle to stay in tact to earn more. It also allows you to take money out for retirement tax free, so if you take out 50,000, you get 50,000. Just look at it this way, if you were a farmer, would you rather get taxed on the seeds you use to plant your fields or the harvest. Any logical person would say your seeds. You paid less money for your seed and received more moeny when you sell you harvest. 401k and IRAs are saving you money on your seeds but taxing heavily on your harvest. It's not about how much you make but how much you keep.

The EIUL also gurantees the safety of your principle, something you won't get from your 401k or IRAs. If you lost 50% of your 401k in the last couple of years, inorder for you to gain that back, the market has to do 100%. There will never be a day when that will happen. Say you started out with $100,000 and in 2 years lost 50%, bringing it down to$50,000. The guy who owns the EIUL will still stay at $100,000. They next year, the stock market goes up 50%. You woul have $75,000 in your 401k or IRA while the guy with the EIUL will have $150,000. See the difference?

The EIUL is not for everybody. If you are financially saavy and knows how to ride the stock market, then great. But your average American does not know how to do that. They put their money in mutual funds and 401k and call it investing but what they really are doing is saving their money. So why would you put your money into something that causes you to loose it.

The other plus side of the EIUL is that you get permanent life insurance. Forget about buying term. Term insurance is cheap but it expires. Say you're 30 yrs old and buys a 30yr term life insurance. In 30 yrs, you'll be 60. What makes you think that at that time, you'll be able to get another term policy. The chances are slim to none and even if you were able to get one, the premiums would be through the roof. Buying term and investing the difference is a 30yr old concept. Why are people still so stuck on it. 30yrs ago, we didn't have cellphones. Now look around you. Almost 90% of the US population owns a cellphone and just look at the evolution of cellphones, now we can do practically everything with our cell phones. Would you rather be carrying a block of brick around with you as your cell phone or a new slick iphone? Same thing with life insurance. The market evolves to fit the consumers.

The EIUL is for the person who wants to build a good retirement nest egg but doesn't know how to get it. If your only options are a 401k, 403b, or an IRA, than you need to seriously look into purchasing an EIUL.

Posted: 19 Jun 2009 01:04 Post Subject:

Why can't someone write about the product without giving just half the story?

For instance, why wouldn't the poster mention that loans on a UL policy greatly increase that the policy will lapse? Why isn't it mentioned that if the policy lapses, all gains are taxed as income? Why isn't it mentioned that the cost of insurance is very high in these products? Why isn't it mentioned that one must commit to an annually increasing insurance premium for the rest of one's life or have this end up being taxable?

Etc. Etc. Etc.

EIUL is nothing more than UL with a different crediting method. There is no reason to expect an EIUL policy to perform materially differently than any other fixed UL product.

As an aside, it's tough to trust anybody who is pitching life insurance as primarily a retirement vehicle instead of as an insurance policy.

Posted: 22 Jun 2009 11:09 Post Subject:

Insurance Expert...I share your frustration with this thread.

There is much convoluted information on this thread.

That being said you wrote:

Why isn't it mentioned that if the policy lapses, all gains are taxed as income?

If the policy lapses there wouldn't be any gains to tax.

Why isn't it mentioned that the cost of insurance is very high in these products?

I'm not quite sure of your point here??? You wrote:
"EIUL is nothing more than UL with a different crediting method. There is no reason to expect an EIUL policy to perform materially differently than any other fixed UL product."

That's exactly correct. So why would the interenal cost of insurance be higher than a regular Universal Life Policy?

Why isn't it mentioned that one must commit to an annually increasing insurance premium for the rest of one's life or have this end up being taxable?

Have what be taxable? The death benefit is income tax free. Any form of cash value insurance in the USA that's cashed out and IF the owner has a gain,... the gain will be taxed. I'm missing your point that paying more premium escapes taxes.

We write these contract all the time with the, No Lapse Guarantee, there isn't any increasing premium.

Please explain your statement.

Posted: 23 Jun 2009 12:26 Post Subject:


You've asked some excellent questions and are making some very good points. I don't see EIUL as being much different from a "traditional" UL product. So, although I didn't make my self clear, my criticisms of EIUL were really directed at how people in this thread were making it sound like the 8th wonder of the world and some of the problems with UL in general. Let me try to address your points.

If the policy lapses there wouldn't be any gains to tax.

I'm talking about if there are gains. The posters were talking about how money can be borrowed and there would be no taxes. Here's an example of my thought process with this.

Ex. Joe buys an EIUL policy (or any UL policy). He has contributed $50,000. The policy had performed well. Joe borrowed $100,000 from the policy and it has now lapsed. The $50,000 gain will be taxed as income.

Posted: 23 Jun 2009 12:39 Post Subject:

I'm not quite sure of your point here??? You wrote:

"EIUL is nothing more than UL with a different crediting method. There is no reason to expect an EIUL policy to perform materially differently than any other fixed UL product."

That's exactly correct. So why would the interenal cost of insurance be higher than a regular Universal Life Policy?

I agree completely with what you are saying. I wasn't trying to say that the insurance costs inside of an EIUL policy are higher than any other UL policy. I was trying to make the point that the posters were trying to talk about what a great investment the product is while ignoring the insurance costs.

Have what be taxable? The death benefit is income tax free. Any form of cash value insurance in the USA that's cashed out and IF the owner has a gain,... the gain will be taxed. I'm missing your point that paying more premium escapes taxes.

Again, this has nothing specifically to do with EIUL and everything to do with any kind of UL policy.

Ex. Joe has a UL policy. He’s had it for a long time since he was 30. He is now 70 years old. He has paid $200,000 in premiums. The policy has a $700,000 cash surrender value and a $1,000,000 death benefit. He doesn’t care about the death benefit. If he cancels the insurance, he’ll get his $700,000, but will have to pay income tax on a $500,000 gain. His alternative is to keep the insurance. Unfortunately, he will be paying the rates of a 70 year. The following year, he’ll pay the rates of a 71 year old. The next year, he’ll be paying the rates of 72 year old, etc.

The same can be said of a WL policy except for the fact that Joe will still be paying the rates of a 30 year old.

Posted: 23 Jun 2009 12:41 Post Subject:

We write these contract all the time with the, No Lapse Guarantee, there isn't any increasing premium.

I do the same thing. If I'm using a UL policy, it is being designed to last forever regardless of performance.

I'm willing to be that we feel the same way towards VUL (highly negative).

Posted: 23 Jun 2009 12:24 Post Subject:

Insurance Expert,
Thanks for the clarification.
The internet message board form of communication is very difficult.

Any life insurance policy SOLD for any purpose "other than" to provide for the financial needs of the intended beneficiary is being SOLD WRONG.

Cash Value Life Insurance is not an investment, life insurance isn't designed as a retirement plan, life insurance is laughable if you think you're saving for a down payment for a house or a college education for your children. Loans against the cash value in a life insurance policy is the fast track to having the policy lapse because there isn't any structured, mandatory repayment plan.

Variable Universal Life (VUL) is blatant life insurance bllsht.

Posted: 24 Jun 2009 10:08 Post Subject:

Gary, what's not to like with VUL? Doesn't everyone need a product that combines overpriced investments with overpriced insurance? Doesn't everyone want to take investment risk with the security of their loved ones?

I feel the way that you do about loans, but much more so in UL policies than WL policies. Policy loans are much safer in a WL policy. This is because WL doesn't have an increasing cost of insurance. One can still get in trouble with a WL policy, so loans need to be closely monitored.

The value of life insurance is absolutely the death benefit. Sometimes, though, the death benefit really benefits the living person.

Ex. Joe is 70. Mary is 65. They have $1,000,000 and no life insurance. Joe wants to leave $500,000 behind for Mary when he dies. They can only spend $500,000 of their nest egg while Joe is alive.

Tom is 70. Sally is 65. They have $1,000,000 and a $500,000 insurance policy. Tom want to leave behind $500,000 for Sally when he dies. They can spend $1,000,000 of their nest egg while Tom is alive.

Posted: 29 Oct 2009 02:34 Post Subject: EIUL

There are alternatives to EIULs. There are VUL's which have no upside and no downside on the return. Yes, you can lose money, but, there is a fixed account, so when you want to transfer the funds into the fixed account, which return about 3-5%, then go ahead and avoid the downside of the market.

Any retirement type saving needs at least 10 years of savings with no withdrawls to build up the nest egg.

Posted: 08 Nov 2009 04:18 Post Subject: EIUL

What are common agent commissions on this product?
ie: $10,000 premium years 1-7 what would the agent receive 1st year and trailing 2-7? Thanks.

Posted: 17 Nov 2009 03:31 Post Subject:

That depends on the company and how good your contract is. Usually around 70 - 90% the first year and whatever you'll agree to in the following years. But HOLD ON JUST A SEC. Help me with something here because I might be reading your message incorrectly.

Are you insinuating that a $10,000 premium will only be paid for 7 years? If so, what happens after that?

Thanks for clearing this up,

Posted: 14 Dec 2009 05:33 Post Subject: Why the I.U.L. will always outperform the market

World Financial Group is definitely the best company to obtain an I.U.L. from. No one says E.I.U.L. anymore, just I.U.L.; there's legal reasons for this. WFG is associated with Western Reserve Life (around since the 1800's), and they have a Global index with a 13% cap, with minimum 1% guarantee. Return should be about 11% a year. Will always outperform S&P 500, because when the S&P sinks in a down market like 2008, the fund will pay minimum 1%. Then fund will go UP 'off the line', while S&P is taking a year just to try and get back to where it was 3 years ago. Think of the math on this... If you have $100,000 in an S&P stock index fund and it sinks to $65,000, then when market rebounds, all you're doing is trying to get back to $100,000. With I.U.L, you never went below $100,000. So when the S&P is rebounding in an up year back to $100,000, your I.U.L. is actually coming up off the line of $100,000 to maybe $113,000. When the S&P gains, the I.U.L goes up. So S&P stock index funds you just rebound; but I.U.L. never went down, so when there's a good year, you make gains. Get it?? Jobs4Grads. more_than_loans@yahoo.com

Posted: 14 Dec 2009 06:01 Post Subject:

If anyone cares to Google World Financial Group, they would see this (among numerous similar entries:

The world financial group is a multi level marketing, or a pyramid scheme, which is believed to have held back illegally up to 900 complaints of misrepresentation from its customers.

Agents of the world financial group scam have been known to lie to prospective customers about their qualifications and experience in the industry in order to gain the trust and credibility of a customer.

Many of the presidents of the world financial group scam claim to make six figure salaries, they have been caught out before lying about their income, products and services, if you hear this claim ask to see the representatives last financial years income for proof!

If you are being recruited by a representative of the world financial group rather than being offered a product or service, you can be assured that you are being asked to take part in an illegal pyramid scheme, do not participate, and report these incidences to the federal police!

Many multi level marketing companies, or pyramid schemes are borderline to being a cult, they are best avoided, It is strongly recognized that the world financial group scam the same as many of the other companies with the same business structure.

If you are considering taking part in, or being recruited by the world financial group, you are best advised to reconsider, as for their products and services it is disputed that they are even of good quality. The world financial group is a scam!


Mark J Colbert
Life Insurance Fraud Investigator

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