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PostPosted: Sun Jan 04, 2009 10:58 am   Post subject: EIUL continued  

It only comes out of these accounts if you use the money for what it was originally intended for, if not, you're tax as income and in some cases even penalized!! #3 When using this as an investment/retirement account there is a really nice bonus for your family if something tragic were to happen to you. I know there are some people who believe that life ins. is a waste of money but, I say other wise! there are many people mainly my clients that have had their spouse or parent die and leave them with all of their financial burdens to take care of. No one wants to wish their financial situations onto anyone but, indirectly do so without getting insurance for it. That is what life insurance is for!! so, if you can get a Great investment option with life insurance attached to it, it's like killing to birds with one stone, pardon the expression! There are other matters as well, as far as getting an agent that can set this investment up right! I would like to warn all those that may be looking for someone to set up one of these accounts! there are two main ways of doing it, 1 in the best interest for the agent (higher compensation) 2 in the best interest for the person (maximizing investment options). for questions you may contact me at my business email jkenyoncook[at]gmail.com or go to Worldfinancialgroup.com to look for the office/branch nearest you! if you contact an office be sure to talk to a QMD (qualified marketing directer) these individuals have been through intense training and know their stuff! they will be able to answer any questions you may have about an EIUL or any other investment options!



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PostPosted: Fri Jan 16, 2009 6:49 am   Post subject:   

The financial business is very helpful to the worldwide people and the people get more benefits.if you haven't purchased any product which is combination of equity and insurance then it is recommend that you should purchase one such kind of product.although there is option for this combination,you can buy one term insurance product+one mutual fund (see the rating of MF).And the financial is fully depend upon the marketing field if the shares increase to get more money otherwise loss the money so it is a up and down business.

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PostPosted: Thu Feb 19, 2009 7:49 am   Post subject: LSW Insurance  

Does anyone have information on EIUL insurance from LSW (Life Insurance Company of the SouthWest)? According to the agent they provide life insurance, cash accumalation and live in benefits (you get the life insurance benefits in case you are critically ill).

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PostPosted: Wed Jun 10, 2009 10:33 am   Post subject: Why EIUL is so popular  

EUIL, Equity-Indexed Universal Life Insurance, is a very good products in the market now for all levels of people. First, its a avoid-taxes tool for the rich. Through a technique invented by a lawyer in New York and a chemical engineer in California, each dollar spend on this insurance can typically eliminate $9 in taxes. Spend $10 million on this insurance, avoid $90 million or more in income, gift, generation-skipping and estate taxes. Second, it offers a unique combination affortable life insurance with the ability to accumulate cash values that grow with the upward movement of a stock index without the normal downside risk associated with the equities market for the middle income families. Or in an other words, EIUL is an optimum vehicle for accumulating cash for retirement and college funds.

In the final word, its worth to invest into! With the right specialist!


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PostPosted: Fri Jun 12, 2009 12:20 am   Post subject:   

This thread sounds like a bunch of salesman pushing a product, but with just enough understanding of the product to be dangerous.

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PostPosted: Fri Jun 12, 2009 5:21 am   Post subject:   

Hi icyzhang,



I'd be supportive towards InsuranceExpert's idea!



Aren't you trying to promote EIUL with the sole purpose of earning business out of this community?



How can a product that's designed to help the middle income families serve the interest of the rich? Won't the rich choose to take more risks in order to maximize their returns?



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PostPosted: Fri Jun 12, 2009 11:25 am   Post subject:   

Steven, when it comes to life insurance, the rich tend to take little or no risk. This is how it should be for just about everyone with life insurance. Risk belongs in investments, not insurance.

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PostPosted: Thu Jun 18, 2009 11:04 am   Post subject: The EIUL is a great product.  

The EIUL is a great product if you are looking for a safe vehicle to use for retirement. Unlike 401k and IRA's, you don't get taxed on your retirement income. With 401k and IRAs, when you take it out, you get taxed whatever the tax bracket is at that time, currently it's roughly 35% but you never know what it'll be 20-30 years from now. For all we know, it could be 50-60%. Imagine your hard earned money being cut in half when you need it most. The EIUL allows you to take loans on your cash value and allows your principle to stay in tact to earn more. It also allows you to take money out for retirement tax free, so if you take out 50,000, you get 50,000. Just look at it this way, if you were a farmer, would you rather get taxed on the seeds you use to plant your fields or the harvest. Any logical person would say your seeds. You paid less money for your seed and received more moeny when you sell you harvest. 401k and IRAs are saving you money on your seeds but taxing heavily on your harvest. It's not about how much you make but how much you keep.



The EIUL also gurantees the safety of your principle, something you won't get from your 401k or IRAs. If you lost 50% of your 401k in the last couple of years, inorder for you to gain that back, the market has to do 100%. There will never be a day when that will happen. Say you started out with $100,000 and in 2 years lost 50%, bringing it down to$50,000. The guy who owns the EIUL will still stay at $100,000. They next year, the stock market goes up 50%. You woul have $75,000 in your 401k or IRA while the guy with the EIUL will have $150,000. See the difference?



The EIUL is not for everybody. If you are financially saavy and knows how to ride the stock market, then great. But your average American does not know how to do that. They put their money in mutual funds and 401k and call it investing but what they really are doing is saving their money. So why would you put your money into something that causes you to loose it.



The other plus side of the EIUL is that you get permanent life insurance. Forget about buying term. Term insurance is cheap but it expires. Say you're 30 yrs old and buys a 30yr term life insurance. In 30 yrs, you'll be 60. What makes you think that at that time, you'll be able to get another term policy. The chances are slim to none and even if you were able to get one, the premiums would be through the roof. Buying term and investing the difference is a 30yr old concept. Why are people still so stuck on it. 30yrs ago, we didn't have cellphones. Now look around you. Almost 90% of the US population owns a cellphone and just look at the evolution of cellphones, now we can do practically everything with our cell phones. Would you rather be carrying a block of brick around with you as your cell phone or a new slick iphone? Same thing with life insurance. The market evolves to fit the consumers.



The EIUL is for the person who wants to build a good retirement nest egg but doesn't know how to get it. If your only options are a 401k, 403b, or an IRA, than you need to seriously look into purchasing an EIUL.


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PostPosted: Fri Jun 19, 2009 1:04 am   Post subject:   

Why can't someone write about the product without giving just half the story?



For instance, why wouldn't the poster mention that loans on a UL policy greatly increase that the policy will lapse? Why isn't it mentioned that if the policy lapses, all gains are taxed as income? Why isn't it mentioned that the cost of insurance is very high in these products? Why isn't it mentioned that one must commit to an annually increasing insurance premium for the rest of one's life or have this end up being taxable?



Etc. Etc. Etc.



EIUL is nothing more than UL with a different crediting method. There is no reason to expect an EIUL policy to perform materially differently than any other fixed UL product.



As an aside, it's tough to trust anybody who is pitching life insurance as primarily a retirement vehicle instead of as an insurance policy.

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PostPosted: Mon Jun 22, 2009 11:09 am   Post subject:   

Insurance Expert...I share your frustration with this thread.



There is much convoluted information on this thread.



That being said you wrote:

Quote:
Why isn't it mentioned that if the policy lapses, all gains are taxed as income?


If the policy lapses there wouldn't be any gains to tax.





Quote:
Why isn't it mentioned that the cost of insurance is very high in these products?


I'm not quite sure of your point here??? You wrote:

"EIUL is nothing more than UL with a different crediting method. There is no reason to expect an EIUL policy to perform materially differently than any other fixed UL product."



That's exactly correct. So why would the interenal cost of insurance be higher than a regular Universal Life Policy?



Quote:
Why isn't it mentioned that one must commit to an annually increasing insurance premium for the rest of one's life or have this end up being taxable?


Have what be taxable? The death benefit is income tax free. Any form of cash value insurance in the USA that's cashed out and IF the owner has a gain,... the gain will be taxed. I'm missing your point that paying more premium escapes taxes.



We write these contract all the time with the, No Lapse Guarantee, there isn't any increasing premium.



Please explain your statement.


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PostPosted: Tue Jun 23, 2009 12:26 am   Post subject:   

Gary,



You've asked some excellent questions and are making some very good points. I don't see EIUL as being much different from a "traditional" UL product. So, although I didn't make my self clear, my criticisms of EIUL were really directed at how people in this thread were making it sound like the 8th wonder of the world and some of the problems with UL in general. Let me try to address your points.



Quote:
If the policy lapses there wouldn't be any gains to tax.




I'm talking about if there are gains. The posters were talking about how money can be borrowed and there would be no taxes. Here's an example of my thought process with this.



Ex. Joe buys an EIUL policy (or any UL policy). He has contributed $50,000. The policy had performed well. Joe borrowed $100,000 from the policy and it has now lapsed. The $50,000 gain will be taxed as income.
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PostPosted: Tue Jun 23, 2009 12:39 am   Post subject:   

Quote:
I'm not quite sure of your point here??? You wrote:



"EIUL is nothing more than UL with a different crediting method. There is no reason to expect an EIUL policy to perform materially differently than any other fixed UL product."



That's exactly correct. So why would the interenal cost of insurance be higher than a regular Universal Life Policy?




I agree completely with what you are saying. I wasn't trying to say that the insurance costs inside of an EIUL policy are higher than any other UL policy. I was trying to make the point that the posters were trying to talk about what a great investment the product is while ignoring the insurance costs.



Quote:
Have what be taxable? The death benefit is income tax free. Any form of cash value insurance in the USA that's cashed out and IF the owner has a gain,... the gain will be taxed. I'm missing your point that paying more premium escapes taxes.




Again, this has nothing specifically to do with EIUL and everything to do with any kind of UL policy.



Ex. Joe has a UL policy. He’s had it for a long time since he was 30. He is now 70 years old. He has paid $200,000 in premiums. The policy has a $700,000 cash surrender value and a $1,000,000 death benefit. He doesn’t care about the death benefit. If he cancels the insurance, he’ll get his $700,000, but will have to pay income tax on a $500,000 gain. His alternative is to keep the insurance. Unfortunately, he will be paying the rates of a 70 year. The following year, he’ll pay the rates of a 71 year old. The next year, he’ll be paying the rates of 72 year old, etc.



The same can be said of a WL policy except for the fact that Joe will still be paying the rates of a 30 year old.
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PostPosted: Tue Jun 23, 2009 12:41 am   Post subject:   

Quote:
We write these contract all the time with the, No Lapse Guarantee, there isn't any increasing premium.




I do the same thing. If I'm using a UL policy, it is being designed to last forever regardless of performance.



I'm willing to be that we feel the same way towards VUL (highly negative).
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PostPosted: Tue Jun 23, 2009 12:24 pm   Post subject:   

Insurance Expert,

Thanks for the clarification.

The internet message board form of communication is very difficult.



Any life insurance policy SOLD for any purpose "other than" to provide for the financial needs of the intended beneficiary is being SOLD WRONG.



Cash Value Life Insurance is not an investment, life insurance isn't designed as a retirement plan, life insurance is laughable if you think you're saving for a down payment for a house or a college education for your children. Loans against the cash value in a life insurance policy is the fast track to having the policy lapse because there isn't any structured, mandatory repayment plan.



Variable Universal Life (VUL) is blatant life insurance bllsht.



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PostPosted: Wed Jun 24, 2009 10:08 am   Post subject:   

Gary, what's not to like with VUL? Doesn't everyone need a product that combines overpriced investments with overpriced insurance? Doesn't everyone want to take investment risk with the security of their loved ones?



I feel the way that you do about loans, but much more so in UL policies than WL policies. Policy loans are much safer in a WL policy. This is because WL doesn't have an increasing cost of insurance. One can still get in trouble with a WL policy, so loans need to be closely monitored.



The value of life insurance is absolutely the death benefit. Sometimes, though, the death benefit really benefits the living person.



Ex. Joe is 70. Mary is 65. They have $1,000,000 and no life insurance. Joe wants to leave $500,000 behind for Mary when he dies. They can only spend $500,000 of their nest egg while Joe is alive.



Tom is 70. Sally is 65. They have $1,000,000 and a $500,000 insurance policy. Tom want to leave behind $500,000 for Sally when he dies. They can spend $1,000,000 of their nest egg while Tom is alive.

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