Indexed Universal Life Insurance Explained (IUL)

Indexed Universal Life Insurance is a blend of term insurance and an investment vehicle.

This is a comprehensive video on the workings of Indexed Universal Life Insurance.

Watch + Learn how a universal life insurance policy works, how the Death Benefit and Cash Account values perform, the details on the flexible premium payment option and also other options available within a IUL product.

Fees are typical with all insurance products. IUL product fees can be a little complicated. Watch and understand how fees are applied to Indexed Universal Life Insurance.

Brought to you by:
Life Benefits Insurance Agency
702-660-7000

[that_pandashark_dude]

Does nothing but dump on iuls then explain how Disneyland was made?!

[mboxir]

You done a great job explaining all important points. Good work!

[DJJones_]

This video is misleading on several points.

[astroman]

Why are IULs are garbage:

1. Money never enters the market – With an IUL, the money
funding the cash value portion of the policy is never
actually invested into the market. Instead, the insurer holds
your “cash” and pays a return on the annual growth of a
specific index. Anyone selling IUL are not required to have a securities lic.

2. Growth potential is capped – While most policies have
a “floor” of 0% which prevents your cash value from
dipping below what you put into it, your growth potential
is capped, too. For example, if your policy limits growth
to 10% on the index and that index out-performs that
percentage, you’ll still only receive the value of 10% in
your account. The insurer keeps the difference.

3. No dividends – Dividends are completely eliminated in an
IUL policy. Not having the chance to reinvest any earned
dividends, as you could choose to do with an individual
investment, means you could miss out on a great deal of
money from dollar-cost averaging over time.

4. Fees, fees and more fees – IUL policies are packed with
fees and charges that will eat into any cash value accrued.

5. Rising costs – The internal cost of insurance continues to
rise as you age, which can limit the amount of money going
toward any potential cash value. All universal life is A.R.T ( annual renewable term)
PLUS: Almost all cash value policies have these
“features” built in.
• You’ll accumulate NOTHING in cash value for the first few
years the policy is in force.
• The cash value earns a lower rate of return (often just
2%-4%) than the potential return you could achieve if you
put your money into a vehicle such as a Roth IRA in the
U.S.
• If you borrow from the cash value, you’ll pay it back plus
interest.
• If you die with the policy in force, beneficiaries receive
the death benefit (less any outstanding cash value loan
balance) while the insurer keeps any accrued cash value. Unless you have the increasing death benefit option ( option b) the consumer will pay more for that option. The consumer always gets screwed when investing in these policies. The only winners are the agent and the company $$$$

The Bs I hear all the time is it has to be "structured properly" I have collected 64 policies in the last year and I haven't I seen one structured properly.

[mgallegos]

Sounds too complicated a product, too many moving parts. Better off buying term and investing the difference.

[WWIIPacificHistory]

While your video is mostly true, you missed the most SIGNIFICANT moving part of a properly managed IUL! IUL’s cash values are supposed to function as and are essentially SELF INSURANCE! After you’re done funding the policy and when you get older, you’re supposed to REDUCE your death benefit to minimize the delta between your cash value size and your death benefit. As you age the tax codes let you to continually reduce that delta until there is no delta and NO Cost of Insurance as the Annual Renewable Term Cost of Insurance is ONLY based on that delta. So your cash value within your IUL and all its associated tax benefits essentially becomes your death benefit and the policy becomes SELF INSURANCE!

[Andy-wobm]

So true! It’s not really equity if it can (and often does) get pulled to plug bleeding holes! Nice comparison!

[HiDefMediaInc]

What are you talking about? Just to throw an example out… Mutual of Omaha‘s IUL is permanent insurance. The video is well produced but I don’t think you’re giving out correct information. I’d love to see you do a video and speak to the permanence of this policy. I never noticed anything about a term in my reading up on indexed universal life.

[cochug]

It was understandable just learn how to talk with your arms too.. I would look better

[moriendus]

IUL is hot garbage. It shouldn't even exist. Great video!

[drealeader]

This is not true. IUL is a permanent policy not Term. The first thing you learn when you get a license is the difference between a term and permanent policy. A universal life policy; similar to a whole life policy are both permanent policies; which is completely different from a term. This information is wrong from the beginning.

[SuperDago]

The tone of his voice says says, depression 😁

[maxbennett]

I HAVE A GREAT BUSINESS OPPROTUYNITY 4 U