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Author Topic: IUL ( index universal life)  (Read 7174 times)

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Offline lost_forever

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IUL ( index universal life)
« on: September 19, 2015, 09:00:50 PM »
I don't understand the hype about index universal life. The annual fee and hidden fees cost so much. Most Hmong people think its all getting rich in 20 years. Reality is, something as good like that is not all glitters.



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Offline SummerBerry

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Re: IUL ( index universal life)
« Reply #1 on: September 21, 2015, 11:40:46 AM »
I don't understand the hype about index universal life. The annual fee and hidden fees cost so much. Most Hmong people think its all getting rich in 20 years. Reality is, something as good like that is not all glitters.
I don't trust IUL policy.  The number are too good to believed...... ..


« Last Edit: September 25, 2015, 01:53:39 PM by SummerBerry »

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YangSFG

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Re: IUL ( index universal life)
« Reply #2 on: October 13, 2015, 03:49:42 PM »
My mentor/upline and myself have noticed that within the Hmong community, not alot of people understand the policies they buy. Our group is slowly trying to change that but its a tough world out there where the truth hurts.

The IUL is a strong but its also tied to variables. The investing portion, how aggressive you want your contributions to be and etc.

Ive been to sales done by other agents from different IMOs before just because I had to be visiting family without knowing that a sales was going on or they were expecting an agent within the hour.
This was before I got reinstated, but I dont mind if its a good agent but when they leave out things I believe to be important and crucial...  ???

I consider myself still new to the industry but when I offer to look at family member policies and ask them what they know about it, the answer is usually some variance of "not alot."
This is why our own community turns us away.



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Evil_K_Man

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Re: IUL ( index universal life)
« Reply #3 on: October 13, 2015, 06:23:52 PM »
My mentor/upline and myself have noticed that within the Hmong community, not alot of people understand the policies they buy.

Most insurance salesman probably don't even understand the products they sell themselves.  They don't understand the mechanisms that power their universal life policies or whatever you call them these days.  All they know is that I read from this script and tell people this and hope they buy it.

I have a professor who use to work for Guardian Life Insurance, but has a hedge fund manager and all they do is take those premiums, invest them like any other asset managment company would and whatever money they make, they pocket until the person starts receiving preimums from their policy, which is a fraction of what they would have recieved if they went into the open market and invested into that same mutual fund or securities.  However before that happens, the sales people take their fees first. 

With the exception of term life insurance for those who have dependents, the rest is just bad investments.  Open a brokerage account, drop the money into a market index (i.e. S&P) and call it a day.

If Hmong people were smart, they would stop buying any other kind of life insurance except Term.



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Offline SummerBerry

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Re: IUL ( index universal life)
« Reply #4 on: October 14, 2015, 11:39:04 AM »
Most insurance salesman probably don't even understand the products they sell themselves.  They don't understand the mechanisms that power their universal life policies or whatever you call them these days.  All they know is that I read from this script and tell people this and hope they buy it.

I have a professor who use to work for Guardian Life Insurance, but has a hedge fund manager and all they do is take those premiums, invest them like any other asset managment company would and whatever money they make, they pocket until the person starts receiving preimums from their policy, which is a fraction of what they would have recieved if they went into the open market and invested into that same mutual fund or securities.  However before that happens, the sales people take their fees first. 

With the exception of term life insurance for those who have dependents, the rest is just bad investments.  Open a brokerage account, drop the money into a market index (i.e. S&P) and call it a day.

If Hmong people were smart, they would stop buying any other kind of life insurance except Term.

I think they get brainwashed to buy whole and other policy because the Hmong agent is selling his way in to get the most commission from it too.  Not only that they don't know what they are buying and most can afford to buy at a reasonable price.  Like I always said the OGs on nyiaj ssi can buy, cash out brand new Toyota tundra/Tacoma trunk, etc.  Its only bad that they can't read and then later have problems with their policies.  You find some of them Hmong agent when you call and have a question later they ignored and never get back to you and pissed you off to just cancel it.  At the same time when you're not their client your phone in the house will be ringing constantly to see if you have decide or whatever.  I used to hate when FFS agent bother us like hell because my husband is the type that doesn't like to be blunt and firm and always said let me think about it some more, give me some more time, etc.  I got tired and finally told them myself that we decide to go with other company or the time is not right or were just struggling and not ready to buy to get them to leave us alone. 

I only buy term but before it expired I might look around for another company or make sure I'm still in good health to be able to renewed it and just pay a little more premium from what I've already been paying.  I always look to make sure the agent is local or within 1-2 hrs away and not a 3rd party seller and especially from a well known company that I can trust.  I hate customer service and always feel going to the office or speaking with the agent in person is so much better. 

Some people have a easier way to collect their death benefits from a crappy company that you may not heard or trust but other have it hard.  Primerica I don't know much about that company but we was able to collected both my in-laws death benefit without a problem.  My mil policy just expired shortly after my fil passed away but we got it renewed without a problem but premium was just a little higher or the same as when we was paying for both of them every 6 months.  We had a uncle who had one from Primerica that wasn't able to collect at all. 



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Offline SummerBerry

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Re: IUL ( index universal life)
« Reply #5 on: October 14, 2015, 11:57:06 AM »
My mentor/upline and myself have noticed that within the Hmong community, not alot of people understand the policies they buy. Our group is slowly trying to change that but its a tough world out there where the truth hurts.

The IUL is a strong but its also tied to variables. The investing portion, how aggressive you want your contributions to be and etc.

Ive been to sales done by other agents from different IMOs before just because I had to be visiting family without knowing that a sales was going on or they were expecting an agent within the hour.
This was before I got reinstated, but I dont mind if its a good agent but when they leave out things I believe to be important and crucial...  ???

I consider myself still new to the industry but when I offer to look at family member policies and ask them what they know about it, the answer is usually some variance of "not alot."
This is why our own community turns us away.

If you're not working in the insurance industry then maybe what you're saying is true and trying to help others understand. 

Even buying from a well known trusted company....... ...I still have to read through the policy booklet to target every fine print in there to make sure I understand more beyond what the agent is telling me at the moment.  I also don't like to question the agent too much so I used my own good judgment in searching, reading, etc.  Call up the state insurance headquarter for questions.  Questioning my agent will be like targeting something I want to be clear but while they don't want to be clear but say something else to make you feel relieved so you don't cancel.  All my policy booklet I have little note tab in pages that I have to look up or question myself that it was not mention by the agent but hate to confront them about all the hidden stuff you find out.  I trust myself that 80% why I'm keeping the policy is because I'm cleared about everything to continued payment otherwise I would want to cancel right away because some of these company or agent already collect a check from you when you're not sure if you have been approved or not just because you fill out the paper and signed but medical exam is scheduled a few day later.



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Evil_K_Man

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Re: IUL ( index universal life)
« Reply #6 on: October 14, 2015, 12:22:40 PM »
Hmong people (especially the OGs) are VERY gullible.  They rather listen to other Hmong OGs then their own kids.  My mother is like that and it annoys the crap out of me. 

Here is me and my mom:

Mom: Why don't you do life insurance for yourself?

Me: I already get it through my company at a subsidized rate and my coverage is 10x more than yours

Mom: But what if you change job or lose your job.  You won't have life insurance anymore

Me: I can get it through my new company or if I don't have a job, then I wouldn't have money to pay the policy and will probably lose it and all the money I put in.

Mom: Well aside from leaving money behind for those you love at the end of the policy it will pay you back.  You will have a retirement fund for when you are old.  The insurance Hmong man told me this and our Hmong neighbors have signed up for it.  They will have money when they are old. Does your company life insurance do that?

Me: Mom, I have 401ks, IRAs, and other investments along with cash savings. My company isn't stupid enough to use life insurance as investments for future pay out.

Mom: But will that be enough?  I heard with this policy it will give you back what you put in...like $50k back.

Me: I'll have 30 times or more that amount when I retire base on what I'm currently planning.

Mom: Oh...okay, well these other hmong people are doing it so I did it too.  I'm getting older and its harder to pass these medical test for life insurance.

Me: Great, at least I'll have some money to cover your funeral expenses.

Mom: See, I don't want to burden you with expenses.

Me: Mom have you given me that money you put into life insurance, i could have paid your funeral expenses and taken a trip around the world

Mom: You don't know what you are talking about and stop making fun of me.  You think I'm old and don't know anything.

Me: Sorry. I was wrong.  Here's some money to go buy more Korean dramas poorly dubbed into Hmong.

Thats how the conversation goes with me and my mom regarding life insurance. 





« Last Edit: October 14, 2015, 12:24:55 PM by Evil_K_Man »

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Offline lost_forever

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Re: IUL ( index universal life)
« Reply #7 on: October 14, 2015, 01:38:55 PM »
Hmong people (especially the OGs) are VERY gullible.  They rather listen to other Hmong OGs then their own kids.  My mother is like that and it annoys the crap out of me. 

Here is me and my mom:

Mom: Why don't you do life insurance for yourself?

Me: I already get it through my company at a subsidized rate and my coverage is 10x more than yours

Mom: But what if you change job or lose your job.  You won't have life insurance anymore

Me: I can get it through my new company or if I don't have a job, then I wouldn't have money to pay the policy and will probably lose it and all the money I put in.

Mom: Well aside from leaving money behind for those you love at the end of the policy it will pay you back.  You will have a retirement fund for when you are old.  The insurance Hmong man told me this and our Hmong neighbors have signed up for it.  They will have money when they are old. Does your company life insurance do that?

Me: Mom, I have 401ks, IRAs, and other investments along with cash savings. My company isn't stupid enough to use life insurance as investments for future pay out.

Mom: But will that be enough?  I heard with this policy it will give you back what you put in...like $50k back.

Me: I'll have 30 times or more that amount when I retire base on what I'm currently planning.

Mom: Oh...okay, well these other hmong people are doing it so I did it too.  I'm getting older and its harder to pass these medical test for life insurance.

Me: Great, at least I'll have some money to cover your funeral expenses.

Mom: See, I don't want to burden you with expenses.

Me: Mom have you given me that money you put into life insurance, i could have paid your funeral expenses and taken a trip around the world

Mom: You don't know what you are talking about and stop making fun of me.  You think I'm old and don't know anything.

Me: Sorry. I was wrong.  Here's some money to go buy more Korean dramas poorly dubbed into Hmong.

Thats how the conversation goes with me and my mom regarding life insurance.

Your mom is funny.  It's okay, just don't let people scam her. 




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Evil_K_Man

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Re: IUL ( index universal life)
« Reply #8 on: October 14, 2015, 01:56:01 PM »
Your mom is funny.  It's okay, just don't let people scam her.

Moms have a will of their own, fortunately the life insurance my mom got wasn't expensive and enough to cover cost at the end of her life.



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YangSFG

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Re: IUL ( index universal life)
« Reply #9 on: October 14, 2015, 08:48:17 PM »
If you're not working in the insurance industry then maybe what you're saying is true and trying to help others understand. 

Even buying from a well known trusted company....... ...I still have to read through the policy booklet to target every fine print in there to make sure I understand more beyond what the agent is telling me at the moment.  I also don't like to question the agent too much so I used my own good judgment in searching, reading, etc.  Call up the state insurance headquarter for questions.  Questioning my agent will be like targeting something I want to be clear but while they don't want to be clear but say something else to make you feel relieved so you don't cancel.  All my policy booklet I have little note tab in pages that I have to look up or question myself that it was not mention by the agent but hate to confront them about all the hidden stuff you find out.  I trust myself that 80% why I'm keeping the policy is because I'm cleared about everything to continued payment otherwise I would want to cancel right away because some of these company or agent already collect a check from you when you're not sure if you have been approved or not just because you fill out the paper and signed but medical exam is scheduled a few day later.

Nope, Im in the insurance business, just reinstated my license this year. #$%^ being truthful is hard lol.
Theres no "one method fits all" out there.

Hearing people out there replacing older folks who have had perma insurance for a good while where theres decent amount of CV into another policy, or something annoys me. For pete's sake, they just need to leave it alone if theyve had it for that long and theyre that old.

When theyre expecting another 15-20 years living on SSI and Food Stamps, dont need to go replacing anything cause we know theyre not going to out perform what they have through means of what theyve got.



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Offline floaty

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Re: IUL ( index universal life)
« Reply #10 on: October 19, 2015, 10:52:10 PM »
Hmong people (especially the OGs) are VERY gullible.  They rather listen to other Hmong OGs then their own kids.  My mother is like that and it annoys the crap out of me. 

Here is me and my mom:

Mom: Why don't you do life insurance for yourself?

Me: I already get it through my company at a subsidized rate and my coverage is 10x more than yours

Mom: But what if you change job or lose your job.  You won't have life insurance anymore

Me: I can get it through my new company or if I don't have a job, then I wouldn't have money to pay the policy and will probably lose it and all the money I put in.

Mom: Well aside from leaving money behind for those you love at the end of the policy it will pay you back.  You will have a retirement fund for when you are old.  The insurance Hmong man told me this and our Hmong neighbors have signed up for it.  They will have money when they are old. Does your company life insurance do that?

Me: Mom, I have 401ks, IRAs, and other investments along with cash savings. My company isn't stupid enough to use life insurance as investments for future pay out.

Mom: But will that be enough?  I heard with this policy it will give you back what you put in...like $50k back.

Me: I'll have 30 times or more that amount when I retire base on what I'm currently planning.

Mom: Oh...okay, well these other hmong people are doing it so I did it too.  I'm getting older and its harder to pass these medical test for life insurance.

Me: Great, at least I'll have some money to cover your funeral expenses.

Mom: See, I don't want to burden you with expenses.

Me: Mom have you given me that money you put into life insurance, i could have paid your funeral expenses and taken a trip around the world

Mom: You don't know what you are talking about and stop making fun of me.  You think I'm old and don't know anything.

Me: Sorry. I was wrong.  Here's some money to go buy more Korean dramas poorly dubbed into Hmong.

Thats how the conversation goes with me and my mom regarding life insurance.

You and your mom are cute. Lol.

So had she given you money to invest, what would you have done? In terms of investing, insurances etc.



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Evil_K_Man

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Re: IUL ( index universal life)
« Reply #11 on: October 20, 2015, 11:17:22 AM »

So had she given you money to invest, what would you have done? In terms of investing, insurances etc.

I would use a small portion of it to pay term life insurance to cover funeral expenses and the rest I would just put it into a stock index like the S&P500.



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Umbrella

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Re: IUL ( index universal life)
« Reply #12 on: December 08, 2015, 08:42:13 PM »
Index Funds are great investment vehicles. Index Universal Life are poor investment vehicles.



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YangSFG

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Re: IUL ( index universal life)
« Reply #13 on: December 10, 2015, 02:57:41 PM »
Index Funds are great investment vehicles. Index Universal Life are poor investment vehicles.

Depends who youre talking to.
Different strokes for different folks.

Theres been multiple studies done and majority fail report the cost of investing in the first place etc.



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Umbrella

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Re: IUL ( index universal life)
« Reply #14 on: December 10, 2015, 06:27:17 PM »
Depends who youre talking to.
Different strokes for different folks.

Theres been multiple studies done and majority fail report the cost of investing in the first place etc.

Not in this case. Hmong agents who sell this product only advertise the investment portion of the IUL. Sure, they'll mention the 'living cash benefit' and the life insurance that is part of the package but the selling point is the investment portion. I'm saying, why invest in an index fund at a premium price when you can open one at a brokerage firm and invest next to the nothing. As a CFP in training, you should keep your investments separate from your insurances. The goal isn't to strike it rich with your life insurance policy but with your investment vehicles.



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