Total Comments: 431
Posted: Fri Sep 07, 2007 10:17 am 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: Mon Oct 15, 2007 05:15 am 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: Thu Nov 15, 2007 09:02 am 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: Fri Nov 23, 2007 05:45 am 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: Fri Dec 21, 2007 02:39 am 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: Mon May 05, 2008 02:14 am 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: Tue May 06, 2008 10:01 pm 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: Wed May 07, 2008 06:57 am 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: Wed May 07, 2008 07:22 am 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: Wed May 07, 2008 08:07 am Post Subject: EIUL
Equity Indexed Universal Life insurance is a great product! Of course, nothing is ever guaranteed anyway.