hey everybody it’s chris with life180 and one of the things that i am hearing a lot about right now is index universal life now i just did a video on exposing doug andrew i’ve got more videos coming out on that but in all of my uh conversations with people on the internet on youtube on facebook on instagram about the different strategies when it comes to leveraging whole life or index universal life i i basically what’s been happening is i’ve been hearing a lot of lies about index universal life there are a lot of people out there who are selling index universal life that a either don’t understand what they’re selling or b are educated improperly and and utilizing the wrong information to actually sell index universal life as something that it’s actually not designed to be and so you know if you don’t understand my background i used to be the head of business development for one of the top index universal life carriers in the country right and with that i got out of it because of my conversations and with the people who designed the product and because of my conversations with you know people on the corporate team and because of my understanding about what the purpose of an index universal life policy is from the insurance company side of things now i know what the marketing is and how it looks really fantastic on the consumer side and it can look fantastic and sexy and better returns and better performance and upside potential and downside protection and you know guaranteed income for life when you hit retirement and all these different things but what i’m going to cover in this video is the fact that there are four major things there’s a lot of things but there are four main key things that i think index universal life is being misrepresented as during the sales process and i want to make you very aware of those in this video so let’s go so the first lie that i think most index universal life agents are telling people consumers the people that are buying the product is that the guaranteed column doesn’t matter and and here’s why what they say is that you have the guaranteed column and the illustrated column the illustrated column typically is based on an illustration rate of let’s say six and a half percent six point four percent something of that nature i’ve seen people running illustrations at 6.4 and running big organizations like the mpi stuff that that curtis ray is doing and it’s just all just garbage honestly um what they tell you is that you have the upside potential and the downside protection and and the thing is if the market does really well you can get maybe 13 if the market does really horribly and loses 20 you’re protected at zero and and so what they say is over a long period of time it’ll all average out and so therefore the market’s never had negative years for a long period of time so therefore the guaranteed column will never come into play so you don’t have to worry about it that’s what they tell you but here’s the deal the guaranteed column has way more to do where has to do with a lot more than just the performance in the market whether it’s the russell 2000 or the s p 500 or dow jones depending on the company that you’re going with in the index the indexing methodology that you choose in the policy inside of the policy it has a lot more to do the guaranteed column has a lot more to do with with internal fees and expenses than it does the actual performance in the market that’s the part that people overlook deeply and here’s the thing when i was at my fortune 1000 job and i was talking to the policy designers the thing that i learned the most about why life insurance companies are making index universal life because the company i worked with was a whole life insurance company for 150 years that had pivoted to becoming in becoming an index universal life company and so now they’re one of the top index universal life companies in the country even to this day but here’s the deal why did they go that direction if if they were doing a whole life and whole life is so awesome why would a company like that go an index universal life route because it shifts the responsibility the guarantees from the insurance company to the actual insurer right and so when you shift the responsibility from the index or from the insurance company to the insured what does that mean it means the guarantees don’t have to be there right so it takes the insurance company off the hook but it’s also it’s a profit center it’s a bigger profit center there is more profit in the insurance company for the insurance company than there is with whole life with indexed universal life there absolutely is and they’re protected if think about it this way a good index universal life policy if you go if you get a good contract let’s say and i know some of you that are watching this are going to be insurance agents and some of you are going to be consumers who are looking to make a decision around should i buy an index universal life policy or should i buy a whole life policy but here’s the thing in index universal life if you’re a good agent we’ll pay a compensation rate of up to 140 150 percent maybe even 160 percent if you’re like a super big producer that that’s a on on the contract apples to apples a whole life policy if you go according to new york regulations will pay you at about 99 at the top end of the contract there are a couple companies that will get you up into the 120 range in that range for for a really good producer but once again that’s about 20 to 30 percent more that life insurance agents make for selling index universal life over whole life insurance so think about like let’s just use logic here how can a life insurance company create a product that gives you the the insured more upside down side protection give you the same opportunity of of guarantees and all these different things and be able to pay the insurance agent more money it just doesn’t make sense if you believe that that sales pitch that if you believe that that makes sense well i’ve got a bridge in brooklyn i can sell you because it just doesn’t it it doesn’t make any logical sense whatsoever so just know that that is a big big issue that i that that i have is that the the guaranteed column on uh on the index universal life illustration really is the guaranteed column taking into consideration the fact that um that that your administration costs inside your policy can be raised your insurance costs can be increased that the market can perform poorly and it’s taking all those things into consideration and it’s taken all the variables that you don’t even understand that your life insurance agent won’t even fully understand so the biggest issue that i have is they say don’t even worry about the the guaranteed column it’s not going to worry it hasn’t happened forever this this company’s been around for 150 years and they’ve never had to do that well guess what that’s a bs story as well because even if the company like company i was with has been around since 1852 right but guess what they’ve only been doing index universal life since the late 90s and so it’s been like 20 something years like in the low 20s you know as far as a couple decades that they’ve been doing this and the market has been awesome during that time we’ve had a couple blips for a couple years but right now we’re coming off a big bull market run i think a lot of people are concerned about where the economy is going and so i i think more importantly companies that have a lot of guarantees that they have to back up it’s important to understand that when a when a life insurance company has investments in their general account and they have uh guaranteed products that they have to back up what are they going to do to back those products up if they can’t get the returns in the market in the fixed income markets which if interest rates remain at all-time lows which they’re looking like they’re going to do they have to create other profit centers other profit centers are term life insurance index universal life insurance policy holders they’re going to increase insurance costs increase admin fees and all this stuff around all of the other areas to make up for the lack of return in other investments in their general account they’re gonna have to create that profit center so the people who are buying indexed universal life policies right now are ultimately in my opinion going to be um penalized to actually back up and meet the guarantees of the people with whole life policies if that company has both so the second lie i would say is not so much a lie i guess as it is just a misleading um element it’s having the conversations around the actual assumptions in the illustrated column um in the current column that that where they run it at 6.4 percent and they show these beautiful um this beautiful compounding growth and you know this always be compounding concept which is just garbage because it doesn’t work that way the only guarantee that i will tell you about that column is it will never perform like you see it the only guarantee on an index universal life illustration is that you will never see the numbers year after year after year match up once you get through year one no matter what happens it’s never going to align it it’s just not going to and so you don’t have the clarity and it’s really hard to plan for something that you don’t have clarity around about how much money is going to be there and and so that’s that’s to me i think it’s it’s a really big issue because i think people oversell on that column and the growth and the opportunity and the cash flow because the challenge is it typically it performs far less and it never meets those illustrated expectations trust me i’ve gone through hundreds of these policies personally i’ve met with hundreds of people personally who had these policies and and then they blew up in their face and i just did a video on exposing doug andrew on this last week and in that video alone he’s involved in a class action lawsuit right now we’re 66 000 people that are clients of his that bought index universal life that structured with him and he says he’s one of the best in the world at doing this one of the only people that could do it the way he says you can do it 66 000 people are suing him and if you haven’t seen that video you need to go back and watch the details of that because it just goes to show you these things never perform what they are illustrated to look like to perform as they look really good on paper but they never perform at that rate and so you need to make sure that you that you have clear expectation that you cannot rely on this always be compounding concept that you’re never going to have down years and when you have a down year the problem is if you have 6.4 average if you have a down year yeah you have a zero in there and so you have downside protection on the investment but guess what you still have the admin fees you still have the insurance cost so it’s not actually a zero you still the the insurance costs and the admin fees are going to eat into the to the capital that you have going on right there plus in down markets if the if the insurance company needs to increase and and and generate more revenue for the company they’re going to increase your admin and insurance costs and it’s going to happen i i mean it’s just a matter of time and and if you think taxes are going up if you think that that interest rates are going to stay low then this is just a matter of time and and you need to understand all the moving parts all the functions inside of these policies and realizing that the only guarantee in this in this illustration that you’re looking at if you’re going through the process of buying an iul policy the only guarantee in it is the fact that the illustration will not be accurate all right so the third lie that i find most agents use involves the guaranteed income for life component of an index universal life policy now here’s the thing most indexed universal life policies at this point in time have some component to them available called a liver or lifetime income benefit rider and what that does is most agents and i know some of these companies some of these guys that are hawking this stuff out there will go out and tell you that hey your money can grow and then once you get to uh retirement age you can trigger this and it will guarantee a crazy amount of income for the rest of your life but here’s the problem that lifetime income benefit rider only exists based on that illustration amount so a lot of times it’ll show you accumulating money and that that rider will show 10 plus percent annualized return which if you could do that it would be absolutely amazing and insane but the bottom line is it doesn’t work that way because it’s 100 based on the amount of money that you have in your policy once you hit retirement age and the only way that the lifetime income benefit riders some companies call them different um but you get the point of the principle of what the rider is and the effect of that rider has on your policy and on your retirement income what that does is it only comes into play based on the amount of money you have in your policy when you retire so therefore if your policy has challenges beforehand or blows up or doesn’t perform the way it’s illustrated at which by the way it won’t i pretty much guarantee it then you’re gonna have issues listen once again doug andrews 66 000 people who are suing him over this there’s other people out there curtis ray who’s going to get busted doing the same exact stuff because they’re their assumptions and the way they’re selling this is not designed like the product is not designed to do what they’re saying it’s going to do for you and it’s great marketing and if you didn’t know if i didn’t know what i know i would buy into it a hundred percent like it it makes sense it’s great marketing on the surface it looks great if you don’t have the whole story and if you’re just kind of going on oh look at the market look at the returns look at all these different things to me it’s crazy that they’re not taking into consideration the variables and they’re just blowing past the guaranteed column of this thing and it’s disgusting i’m hearing people i’m having conversations with people you can imagine i’m putting out these videos now exposing index universal life i’m having people call me every single day telling me about their policies and the problems that they’re having and the craziest part about that is these insurance companies you know people are trying to get their their policies reimbursed they’re trying to get their money back for doing these things after two three years and the insurance companies are saying ah no it’s good insurance it’s insurance it’s insurance and the problem is if you don’t structure them properly and you’re not working with somebody that really understands all the moving parts then you are going to be stuck with this you’re going to get two three years down the road you’re going to have your money into these policies it’s not going to perform the way that you think it’s going to based on how you were sold and therefore then you’re going to go back to the insurance company and ask for money back or you’re going to ask for something to happen and they’re going to basically say listen i’m sorry you purchased an insurance product it’s not designed to do that and and you’re going to be kind of uh holding the bag on that one and i know it because i’ve been talking to people who are going through that so i just really encourage you to be careful about that and that leads me into my fourth lie now the fourth lie is that index universal life is a more capable more beneficial more efficient more effective product to use for infinite banking now i don’t call it infinite banking because i think there’s some math behind infinite banking that just doesn’t make a lot of sense or it’s not telling the whole story once again that’s why we utilize a strategy we call the and asset which is essentially infinite banking utilizing whole life insurance instead of utilizing an index universal life policy now once again this is just great marketing on behalf of the index universal life agents out there mind you these index universal life agents think about it this way they can sell both they could sell whole life or they could sell iul but the bottom line is they’re selling index universal life i believe because the commissions are higher period like that’s it they or or i’ll say this maybe they’re selling index universal life because they they bought they drank the kool-aid they believe what they’ve been sold but i promise you if you look into the math if you look into the actual internal fees the ability for the insurance company to change your expenses inside of the policy every year as you get older as insurance costs go up think about it this way every year your index universal life policy insurance charges get more expensive as you get older it’s just baked in that’s the way they function the way that the index universal life products offset that is there’s supposed to be more cash accumulation in the policy so it will absorb the increase in that cost the problem is when the policy doesn’t perform as illustrated and you get older and the insurance costs go up naturally anyway and then you add on top of that where the insurance company can create a compounding problem to that increase in cost anyway and they say listen we’re also going to increase the actual rates of of of your insurance charges so that that compounds the issue so your insurance expense gets way higher and therefore now your insurance policy just blows up and and you have a big problem and you don’t have the money and you don’t have the retirement income that you were banking on and it’s all garbage and so once again i would say for the context of this lie about index universal life not being a great banking alternative the way they do that is they say to you all the benefits that it has and i’ll do probably another video on this because it’s going to be a much longer topic but the bottom line is that your insurance policy should not be an investment if anybody is selling you life insurance as an investment they’re selling you wrong you’re you’re buying something that that is not accurate like it life insurance is life insurance now life insurance companies from financial institution perspectives are super secure super they’re fortresses of wealth and they they really i believe a properly structured life insurance policy should be a foundational component to everybody’s financial plan i’m a big believer that a properly structured whole life insurance policy is the only way to make sure what you want to happen will happen when you want it to happen whether or not you’re here to see it right so like that component of it it can be a great way to save in your rainy day fund a great way to save for an opportunity fund a great way to save uh if you want to be able to invest in crypto or stocks or or you want to buy real estate with it or something else but the bottom line is this if you know that you want to invest in day trading if that if that’s your deal if you want to do real estate if you want to do crypto if you want to and invest in a business if you want to buy and flip cars i don’t care what it is for you the bottom line is those channels are where you need to be taking your risk and taking and getting your returns i’m a big believer you have to take risk if you want to create wealth you have to you should not create risk inside of your insurance policy and the more variables you take on the more risk you take on i think it’s important to understand that and so when you leverage your index universal life policy from a banking perspective it just it just compounds the issue a whole life insurance policy is better for that because what you’re doing is you’re guaranteeing you’re putting your money in into an account where the funds are 100 guaranteed it’s very predictable you know what you’re dealing with and so you can operate if you can’t manage anything that you don’t understand the metrics for it’s impossible to manage the metrics of an iul on a year-to-year basis whereas a whole life insurance policy you know what’s going to happen so from a banking perspective never never never use iul i mean nelson nash the guy who created the concept in general and started the whole process would be rolling over in his grave seeing all the people who have tried to bastardize the concept and use it use a strategy with an index universal life because it just doesn’t work do not believe all the people who are telling you that it does so anyway i hope that makes sense i hope it helps if if you’re if it’s your first time here and you found value in this um by all means please hit that like button it definitely helps the channel out hit the subscribe button make sure you click the bell that way you get notified every single time i launch a new video i really am enjoying creating this content if you have any questions go ahead and comment below you’ll know if you comment i engage with as many comments as i can almost 100 percent if you have any questions you want another video let me know i will create it if you are an agent if you are somebody who’s looking to you know possibly leverage life insurance in your financial world definitely subscribe because i’ve got a lot of content coming around this con this this topic that whether you’re an agent or consumer it’s going to benefit you so anyway go out there have a blessed inspirational day and i look forward to seeing you soon take care
Life Insurance near Hazlet, Monmouth County, New Jersey, United States
Call Lee at 917.282.6285
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