So how about sharing which WL GUARANTEES a NET Loan of less than 1%?....
Penn Mutual...... After 10 years
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So how about sharing which WL GUARANTEES a NET Loan of less than 1%?....
Penn Mutual...... After 10 years
Your statement is a bit misleading. The 4% is guaranteed so that the cash value endows. Its not the IRR earned by the policy holder.
No one is guaranteeing 4% dividends in any whole life life insurance contract in fact dividends are not guaranteed at all.
Over the life of a whole life policy if you pay all premiums to age 100 then at age 100 you may have a guaranteed cash value equal to about a 4% return but dividends are a completely other story. Also many companies today have also implemented a direct recognition concept whereas a loan policy will get less dividends than a policy without loans. Most whole life companies also charge more than 4% for policy loans as well. As stated earlier an IUL with the right company can have either a variable loan that can take advantage of the arbitrage for the difference between what the index earns and what the loan cost is or can have guaranteed fixed loans that cost 1.5% in years one through 5 and 0% after that. The most flexible IUL company when it comes to loans allows you to change monthly from a fixed to a variable or vice versa with out paying the loan off.