Question
iul insurance...any risk at all?
Hi, my friend who just started working for world financial group is trying to sell iul policy to my wife and I. He didn't have a license yet, so he brought her trainer to our house. They told me my monthly payment will split into insurance and investment. On the investment side, I am guaranteed to have 1-12% interest in return. It's so safe, even if a "great depression" happens, we are still cover with one percent. And loaning your cash value in the future means tax free. We are not rich but we do have a house and save about $3000 a month. They say in our situation, we should buy two policy of $1million each and put the max of our monthly saving into the investment side of the policy and we'll be rich in soon future based on the rule of 72...whatever that is. My wife and I are 29 year-old with no children. Is this a good plan or too good to be true? Does their product seems to fit our needs? Thanks for any experts' opinions.
5 months ago - 3 answers
Best Answer
Chosen by Asker
Wow, so, with annual inflation at 3%, you're going to go for something that's guaranteed to lose value every year?? Dude. Always, always run the numbers. Before you buy any financial tools - and life insurance of ANY kind, is a financial tool - SET THE GOAL. If you're buying life insurance as an INVESTMENT, it's a darned crappy investment - only about 10% of what you pay in, goes to 'investing'. Would you buy stock where you're guaranteed to lose close to 90% of what you pay? That's what you're being sold. You haven't actually DEFINED a need. What is your need? I don't seen waht your need is, or what your goal is. BUT. Whatever you do, RUN THE NUMBERS. If you invest your $3,000 a month in an index fund, in 15 years, you'll have over a million bucks. Anything where they're paying out LESS than that in life insurance, over the next 15 years, well, you can do better, and WILL do better, yourself. Here's a calculator, so you can figure the value of your hard earned money this guy is trying to part you from: www ... Don't be sold.
by mbrcatz
5 months ago
Asker's Rating: 
Other Answers
Be very suspicious of this. Insurance usually makes a lousy investment. Keep life insurance and investing separate. Buy term life insurance and invest the difference.
by jlf- 5 months ago
Life insurance is designed to solve two problems. The first is to protect against the loss of income in the case of death of an income producer. The second is asset protection from the tax man (cash value grows and can be accessed "tax free").... But Life insurance, like mutual funds will not make you rich. The beauty of Indexed Universal Life is that your cash value in the policy participates in the upside movement of the stock market index, and NONE of the downside. There is a floor and a reset feature meaning that you get the gains, but not the losses. The problem with a mutual fund or a variable life policy is that your principle amt. actually decreases in the "negative" years of the stock index, meaning that in the next positive year you have to make up whatever lost principle you once had before you experience a single penny in the growth of your cash. The cash value in an IUL NEVER loses principle. And since you are allowed to "borrow" from your IUL policy tax-free in your "golden years", it is in effect a nice big ROTH IRA.... There is one particular company that has the best policy in the IUL market by far, both in terms of rating, and in the historical yields that have been credited to the cash account in the policy. I hope that this helps you---kevinmurphy777atgmail.....
by amzkevinatgmaildotcom- 5 months ago