IUL... Leads/ books/ YouTube videos

Securecare III from Securian is built on a WL chassis but not in the spirit of what you're saying (a real WL policy with a 7702b rider).

OneAmerica could be added to that boat too right?

But yeah, real WL and not a Hybrid. Something that does not put your money to sleep.
 
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can you share with me what you believe the tax perks to be?

that might be good starting point of understanding, etc
Yes, I was simply referring to the tax free benefit of an "income" if/when used to subsidize or supplement during retirement or if a loan is needed prior for emergency/medical/ or other reasons..

I also understand that the growth of the cash value within an IUL is tax deferred.

Tax-free death benefit to beneficiary...

If there's more than this- I don't know them.

Please correct me if I'm wrong, I want to grow and be the best in this space- in my area.
 
I only will offer true 7702b benefits (or 101g w/ without permanency clauses and with $4$ reduction on the death benefit).
What kind of Chinese is this?! 😁🤦🏻‍♀️🫣

Guess I have to go back to the drawing board!! I haven't seen this at all In any of my reading or videos (that I can recall at least)

Would love to understand more - please explain ... Or link what you're talking about to a blog, posts, article. I'll search as well.
 
Yes, I was simply referring to the tax free benefit of an "income" if/when used to subsidize or supplement during retirement or if a loan is needed prior for emergency/medical/ or other reasons..

I also understand that the growth of the cash value within an IUL is tax deferred.

Tax-free death benefit to beneficiary...

If there's more than this- I don't know them.

Please correct me if I'm wrong, I want to grow and be the best in this space- in my area.
Just be extra careful. Loans are not borrowing of your own money. A loan is merely the insurance carrier lending you some of their other money & then taking a collateral position against the cash value and death benefit. That loan then compounds over & over & over & over, if not repaid. Depending on loan rare, the loan payoff will double every 10 to 15 years.

If the policy lapses, is surrendered, 1035 exchanged to new carrier and the loan is extinguished by the carrier to repay themselves, the policy owner can get a huge tax bill for all gains and the loan interest charged counts against them in the calculation.

Just last week, I had to attempt to help an insurance agent licensed for 40 years try to mitigate the mess he created with his own personal life policy he bought in 1983. He had taken a loan out of the policy of 10k in the early 1990s. That loan then became a 20k loan after 10 years, 40k after 20 years, 80k loan after 30 years & now stands at a $120k loan. The policy will lapse in about 8 months & will trigger a taxable distribution of almost 85k.

My entire point is don't overemphasize loans, encourage max funding, encourage loan repayments, etc.

Loans are only tax free if they get repaid by the owner or if the policy is still active as a death claim. That really isn't anything special in the Tax code as borrowing someone else's money has never been a taxable event.

If used right & actually understood by the agent & the consumer, it can be a great product. But if either party doesn't micromanage the policy & watch/manage the Loans they took, it can be a nightmare
 
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Just be extra careful. Loans are not burrowing of your own money. A loan is merely the insurance carrier lending you some of their other money & then taking a collateral position against the cash value and death benefit. That loan then compounds over & over if not repaid. If the policy lapses, is surrendered, 1035 exchanged to new carrier and the loan is extinguished by the carrier to repay themselves, the policy owner can get a huge tax bill for all gains and the loan interest charged counts against them in the calculation.

Just last week, I had to attempt to help an insurance agent licensed for 40 years try to mitigate the mess he created with his own personal life policy he bought in 1983. He had taken a loan out of the policy of 10k in the early 1990s. That loan then became a 20k loan after 10 years, 40k after 20 years, 80k loan after 30 years & now stands at a $120k loan. The policy will lapse in about 8 months & will trigger a taxable distribution of almost 85k.

My entire point is don't overemphasize loans, encourage max funding, encourage loan repayments, etc.

Loans are only tax free if the get repaid by the owner or if the policy is still active as a death claim. That really isn't anything special in the Tax code as borrowing someone else's money has never been a taxable event.

If used right & actually understood by the agent & the consumer, it can be a great product. But if either party doesn't micromanage the policy & the Loans they took, it can be a nightmare
Thank you so much, this is precisely what scares me! I never want to hurt anyone... So understanding this and being able to explain the TRUTH is what I am hoping to accomplish.

Thanks again for this information
 
What kind of Chinese is this?! 😁🤦🏻‍♀️🫣

Guess I have to go back to the drawing board!! I haven't seen this at all In any of my reading or videos (that I can recall at least)

Would love to understand more - please explain ... Or link what you're talking about to a blog, posts, article. I'll search as well.
You shouldn't worry about it if you're selling IUL for cash accumulation.

The post you quoted was referencing LTC/Chronic Illness riders.

I blame @Allen Trent for derailing your thread.

That said, the chart @DHK posted is solid.
 
Correct. That's the "following all of the above" part.

I detailed how to get the best CV results from an IUL. Just me personally, but I don't believe IUL should be purchased for any other reason.
Just as a reference, there are eight different indexed ULs that are priced primarily for their extended no lapse guarantees. American General, American National, Midland National, Minnesota Life, Nationwide, North American Company and Pru all offer one of these products. The guarantees offered range from age 120 to lifetime. I helped development the most competitive GUL in the country in 2003, and it was on an indexed life chassis. We used it to help get our field force comfortable with indexing, so that they would be more apt to sell our cash accumulation IULs. sjm
 
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