by Guest » Fri Sep 07, 2007 09:20 am
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.
Jeremiah
Jeremiah
Posted: Tue Jun 23, 2009 12:39 am 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: Tue Jun 23, 2009 12:41 am 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: Tue Jun 23, 2009 12:24 pm 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: Wed Jun 24, 2009 10:08 am 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: Fri Sep 04, 2009 04:51 am Post Subject:
Posted: Thu Oct 29, 2009 02:34 am 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: Sun Nov 08, 2009 04:18 am 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: Tue Nov 17, 2009 03:31 am 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,
Mark
Posted: Mon Dec 14, 2009 05:33 am 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: Mon Dec 14, 2009 06:01 am 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!
ALTHOUGH THE INFORMATION SHOWN ABOVE IS NOT NECESSARILY MY OPINION, I HAVE HEARD THINGS ABOUT WFG AND THOUGHT I"D PASS THIS ALONG.
Mark J Colbert
Life Insurance Fraud Investigator
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