Total Comments: 431
Posted: Fri Jan 16, 2009 06:49 am 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: Thu Feb 19, 2009 07:49 am 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: Wed Jun 10, 2009 10:33 am 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: Fri Jun 12, 2009 12:20 am 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: Fri Jun 12, 2009 05:21 am Post Subject:
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: Fri Jun 12, 2009 11:25 am 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: Thu Jun 18, 2009 11:04 am 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: Fri Jun 19, 2009 01:04 am 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: Mon Jun 22, 2009 11:09 am 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: Tue Jun 23, 2009 12:26 am 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.