Equity Indexed Universal Life Insurance Is it good for us?

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PostPosted: Thu Oct 29, 2009 2:34 am   Post subject: EIUL  

There are alternatives to EIULs. There are VUL's which have no upside and no downside on the return. Yes, you can lose money, but, there is a fixed account, so when you want to transfer the funds into the fixed account, which return about 3-5%, then go ahead and avoid the downside of the market.



Any retirement type saving needs at least 10 years of savings with no withdrawls to build up the nest egg.


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PostPosted: Sun Nov 08, 2009 4:18 am   Post subject: EIUL  

What are common agent commissions on this product?

ie: $10,000 premium years 1-7 what would the agent receive 1st year and trailing 2-7? Thanks.


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PostPosted: Tue Nov 17, 2009 3:31 am   Post subject:   

That depends on the company and how good your contract is. Usually around 70 - 90% the first year and whatever you'll agree to in the following years. But HOLD ON JUST A SEC. Help me with something here because I might be reading your message incorrectly.



Are you insinuating that a $10,000 premium will only be paid for 7 years? If so, what happens after that?



Thanks for clearing this up,

Mark



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PostPosted: Mon Dec 14, 2009 5:33 am   Post subject: Why the I.U.L. will always outperform the market  

World Financial Group is definitely the best company to obtain an I.U.L. from. No one says E.I.U.L. anymore, just I.U.L.; there's legal reasons for this. WFG is associated with Western Reserve Life (around since the 1800's), and they have a Global index with a 13% cap, with minimum 1% guarantee. Return should be about 11% a year. Will always outperform S&P 500, because when the S&P sinks in a down market like 2008, the fund will pay minimum 1%. Then fund will go UP 'off the line', while S&P is taking a year just to try and get back to where it was 3 years ago. Think of the math on this... If you have $100,000 in an S&P stock index fund and it sinks to $65,000, then when market rebounds, all you're doing is trying to get back to $100,000. With I.U.L, you never went below $100,000. So when the S&P is rebounding in an up year back to $100,000, your I.U.L. is actually coming up off the line of $100,000 to maybe $113,000. When the S&P gains, the I.U.L goes up. So S&P stock index funds you just rebound; but I.U.L. never went down, so when there's a good year, you make gains. Get it?? Jobs4Grads. more_than_loans@yahoo.com

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PostPosted: Mon Dec 14, 2009 6:01 am   Post subject:   

If anyone cares to Google World Financial Group, they would see this (among numerous similar entries:



The world financial group is a multi level marketing, or a pyramid scheme, which is believed to have held back illegally up to 900 complaints of misrepresentation from its customers.



Agents of the world financial group scam have been known to lie to prospective customers about their qualifications and experience in the industry in order to gain the trust and credibility of a customer.



Many of the presidents of the world financial group scam claim to make six figure salaries, they have been caught out before lying about their income, products and services, if you hear this claim ask to see the representatives last financial years income for proof!



If you are being recruited by a representative of the world financial group rather than being offered a product or service, you can be assured that you are being asked to take part in an illegal pyramid scheme, do not participate, and report these incidences to the federal police!



Many multi level marketing companies, or pyramid schemes are borderline to being a cult, they are best avoided, It is strongly recognized that the world financial group scam the same as many of the other companies with the same business structure.



If you are considering taking part in, or being recruited by the world financial group, you are best advised to reconsider, as for their products and services it is disputed that they are even of good quality. The world financial group is a scam!



ALTHOUGH THE INFORMATION SHOWN ABOVE IS NOT NECESSARILY MY OPINION, I HAVE HEARD THINGS ABOUT WFG AND THOUGHT I"D PASS THIS ALONG.



Mark J Colbert

Life Insurance Fraud Investigator



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PostPosted: Mon Dec 14, 2009 6:01 am   Post subject:   

When assertions and/or recommendations like the one above are posted in this site, readers should protect their best interest by researching the company and learning what the industry and/or any regulatory agencies have to say.



An Informed Decision Is Always The Best Decision



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PostPosted: Tue Dec 15, 2009 4:56 am   Post subject:   

Notice that Jobs 4 grads conveniently doesn't mention the cost of insurance.


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PostPosted: Fri Jan 08, 2010 6:09 pm   Post subject: Can anyone explain how they do this?  

I have talked to agents from World Financial Group and searched around the internet but nobody seems to be able to explain how the insurance companies guarantee no losses and also give you the return when the market goes up. Simple logic would make this look impossible. I understand that the premiums are not invested directly in the stock market but if not then what is the insurance company doing with the money? And if it's not tied directly to equities, does the insurance company decide how much your return should be when the market is good?


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PostPosted: Fri Jan 08, 2010 8:29 pm   Post subject:   

The insurance company is able to guarantee no losses. They aren't guaranteeing that one won't lose money on their insurance contract. They are saying that the side fund won't lose money.



It's a waste of time to understand how the side fund works without understanding the cost of insurance.


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PostPosted: Sat Jan 09, 2010 3:46 am   Post subject:   

This is a good point. Talk to you're blue in the face about the indexing part of an equity indexed life product, but if you don't understand how universal life insurance works, you're in for a big surprise when you get older.

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PostPosted: Sun Jan 24, 2010 10:02 pm   Post subject: life insurance  

want to have large numbrs f customers to achieve my target


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PostPosted: Wed Feb 03, 2010 1:05 am   Post subject: EIUL  

I have thought about buying EIUL, so could you please give me some suggestions about this produce.





Thank you,



Theresa


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PostPosted: Wed Feb 03, 2010 3:09 am   Post subject:   

Suggestion number one: don't buy it.



It's all about the illustration magic.

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PostPosted: Tue May 04, 2010 3:07 pm   Post subject:   

Sorry I didn't see this sooner. The Dec 13, 2009 post from "Jobs4Grads" is a perfect example of an agent's inability to understand the product he wants others to purchase. While he talks about "a Global index with a 13% cap" and "Return should be 11% a year," (sounds a lot like an unlawful statement of "guarantee" to me) and "Will always outperform the S&P 500", (again another unlawful guarantee) he shows his utter ignorance of EIUL and UL in general (and demonstrates his lack of a FINRA securities registration).



Notice that nowhere in his post does he mention anything about the "participation rate", yet he does state, "So when the S&P is rebounding in an up year back to $100,000, your I.U.L. is actually coming up off the line of $100,000 to maybe $113,000," which is unadulterated hogwash! The participation rate in every WRL EIUL policy I've had the pleasure of tearing apart is 75%, and none of them have shown a 13% rate cap. If the associated index rises at a 12% rate (notice I did not use 13% like Jobs4Grads did -- because 12% is most any of us with a securities license can talk about) -- the 75% participation rate limits the increase to 75% of 12%. If the index were to have a phenomenal year, the rate cap limits the upside to just 12% even if 75% of whatever would be higher.



WFG reps are trained to say to prospects, "You get ALL of the upside of the market, with NONE of the downside." Ain't so. As Guest1 and BNTRS tried to point out, just because a negative return rate in the index is bolstered by a 1% minimum guarantee in the contract, it does not mean that one's cash value in the contract will not decline. The cost of insurance, waiver of premium rider, child rider, and other fees and expenses are all charged each month whether the index is up or down. And as age goes up, erosion of cash value can accelerate beyond even a contract's 5% or 6% rate of return in a year.



And speaking of the "index", it is the year-over-year change that affects the interest rate applied to the cash value, not the day-to-day performance that one may be able to exploit in a Variable Universal Life policy that Jobs4Grads cannot market because he does not have a securities license. The index could rise, rise, rise most of the year, and give back everything it gained on December 30, if the change between Jan 1 and Dec 31 is 1%, that's what the EIUL policy earns for the next 12 months.



If my S&P500 index mutual fund is rising daily, his EIUL putters along at 1% for 12 months. It does not rocket from $100,000 to $113,000. Lord have mercy.



WFG reps are also taught to use a hand drawn illustration (that most of them have never really figured out, they just memorize the script and the drawings) that attempts to show that UL is in the same category but more advantageous than a retirement account such as a 401(k) or IRA, and they are even taught to say, "Mr. Jones, you can only put $5,000 in an IRA or $14,000 in your 401(k), but you can put an unlimited amount of money in our EUIL policy. And it grows tax free and you can have the money tax free as long as you leave 10% in. But you have to pay tax on your 401(k) or your IRA. So we recommend that you invest your money in our EIUL instead." INVEST! from the mouths of persons without securities licenses!



Unfortunately, the majority of a WFG rep's clients don't have the ability to fully fund either their 401(k) or an IRA, so the whole baloney about putting unlimited amounts of money into a life insurance policy is BS anyway. But they try to get as close to $416.66 per month in premium as they can.



Quote:
When assertions and/or recommendations like the one above are posted in this site, readers should protect their best interest by researching the company and learning what the industry and/or any regulatory agencies have to say.




Great advice from Mark, above. But it doesn't go quite far enough. Not only do you need to know something about the company, you must also know how their product works.



Agents speak with great confidence and often intimidate prospects with their "profound knowledge." Insurance is one of those things, like saving money, that no one learns in school. Our parents probably did not learn it well, if at all, and we learn from their example, if we don't learn about it in school or in church.



So most of us learn the hard way, by making mistakes. But learning the hard way when it comes to insurance is costly. For some, it means never being able to recover. That's why I educate my students and my clients about the various types of life insurance contracts that exist, I show them when one may be better suited to a person's needs than another.



And I show them that there is no perfect policy, that each one does exactly what it says it will do, but also that some policies require more hands-on maintenance on the part of the client than many clients are willing to give to their policy. If that's the case, even if the policy is in the client's best interest, it's the wrong policy.



So to all who read these assorted posts, you also need to do some outside reading. Not the least of which is the Buyer's Guide to Life Insurance that must be given to you when you purchase a life insurance policy. Another good book to read, although it may be hard to find, is What's Wrong With Your Life Insurance by Norman Dacey. It's a little dated, but generally explains each of the different types of life insurance properly.



And if you aren't sure that an agent is telling you the truth . . . bring your questions here. We'll all help to set things straight!


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PostPosted: Sun Jul 11, 2010 4:18 pm   Post subject:   

Quote:
eiul is really good especially for kids and protection




EIUL is a long term investment plan and as person invest on the name of their kids majorly for long term view so it becomes 'kids pro' plan.



Even though EIUL is lucrative I will advice to go for plain term insurance and remaining amount for mutual funds/stocks route,as it is also one of the best choice.



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