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Author Topic: IUL ( index universal life)  (Read 4566 times)

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Offline Evil_K_Man

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Re: IUL ( index universal life)
« Reply #15 on: December 15, 2015, 11:52:32 AM »
The goal isn't to strike it rich with your life insurance policy but with your investment vehicles.

Exactly, the point of a life insurance is to hedge the chances of you "DYING" so that your dependents are not left with debt or other expenses.  It was never meant to be an investment strategy for retirement.  But now these companies are bundling up life insurance to be retirement investments when they really aren't, to make more money.

Here is an example of how poor a whole life insurance is as an investment. Below is the average rate of return on wholelife insurance from New York Life' annual rate of return.

5 years is  -10.7% (Because you are paying the sales people and the company for the first couple of years)
10 years is 2.0%
15 years is 3.7%
20 years is 4.6%

Keep in mind that healthy inflation grows at about 3.0%, so after 20 YEARS, you are left with an annualized return of 1.6%.  Are you freaking kidding me? You can get an average annualize amount of 8.0% with the S&P500.




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Offline YangSFG

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Re: IUL ( index universal life)
« Reply #16 on: February 17, 2016, 01:36:47 PM »
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.

Forgot I took part in this discussion.

I don't disagree with you but the main point is that our Hmong agents don't know how to illustrate or run an IUL product. Just by participating in discussions with our Caucasian counter parts, the information is overwhelming and takes a bit to soak it all in. I've seen our Hmong Agents try and illustrate IUL policies at an average of >7% return, anyone else see how ridiculously unbelievable this is?

Definitely not about striking it rich. One of the strong suits that our Caucasian counter parts (agents) like and understand about IULs is the income supplement at later years, mainly retirement. 

Not to sound cocky or anything but sometimes I want to meet these agents and pick their brains and see how much they really know. Our Hmong community is so saturated and stirred that everyone just shuts their doors to anyone who brings up life insurance. I feel like our community was swept by MLM and have forgotten about servicing our clients.



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