I was wrong about Whole Life Insurance...

For years I've talked about Whole Life Insurance on this channel. It's time to review that. How does Whole Life Insurance really compare to Indexed Universal Life Insurance?

[eddavenport]

Thank you very much for your time. This is a very valuable video! I, too, received a call from my bank based off a deposit. I love having options. You provided me options.

[kriskris]

Totally agree with you.I view Whole life policy as a savings alternative..the rents I receive from my tenants go into a WL policy so I can shield the money from any lawsuits and it grows safely..I try to grow my money outside the policy by taking policy loans and buying more rentals or do Private money lending.

[johnp]

Nice video. I appreciate it when people can admit they may have been wrong about something. I'd like to see an update on premium finance some time. I'm wondering about the very aggressive premium finance strategies for both IULs and WL policies now that interest rates have surged in the last year. It seems like they were based on almost always getting a nice spread between policy returns and loans. I wonder how long that spread can go negative before they face problems.

[crazy_dude]

dude became the agent himself and started scamming

[karimmourabitamari]

WL, in Canada, will allow you to have your risk free part of portfolo tax free and to carry a hefty death benefit along the way. Risk like Nasdaq and index funds can be played at lower fee and more transparently elsewhere.

[CdotForbes]

You and I have the exact same mindset for IUL and Whole life.

[pablo]

Hi Matt. Appreciate the video. To be fair, in the past you *have* pitched WL as a CD alternative. Perhaps now you realize how that may be more attractive to people than you realized before. I do love your new tenor!

I just converted to a new Whole Life policy to add diversification to our IULs. I see them as complementary because I know that at any point in time one will be better for some things---and one will be better for others.

[janelbest]

Awesome transparent insurance info...just subbed 👍 👌

[ztugxws]

Why didn't you discuss the fees for IUL's? They are usually higher and go up each year unlike many WL policies that are fixed fees.

[JaySquaredNY]

Interesting video, especially with the click-baitey title. Without getting into the minutia, a true and adequate analysis of an individual’s financial profile will determine what’s best for client, be it: term, WL, UL, IUL, VUL, IRAs, CDs etc. BTW, maybe I missed it, but there’s no mention of the cap on IUL, just the floor. If you want maximum risk/ reward, then VUL is an optimal option. Bottom line, know your client, then guide them to a solution that works for them.

[firecraig]

Good video. Disagree with a few things. I’d be willing to bet a dividend paying WL policy with one if the top companies would perform better than an IUL in the fixed account. Also, WL has and is better than bonds. I personally have a VUL and a WL. Seems like a better strategy. I’d like to hear your opinion.

[dr.debbiewilliams]

I had both whole life (which has a cash value feature as well as term life with more than one insurance company, which is probably why they tried to kill us. Multiple Policies.

[WaltChen-gyzt]

Thank you so much for this video. My company is in the same space, focusing on index universal life insurance and index annuities. I agree every single thing you said about the whole life insurance policies, Although I would like to point out that investing whole life insurance policies versus investing CDs are quite different, because cash value life insurance policies tend to have a pretty long surrender period. Most of the bank CDs are either one or two years with a pretty high interest return. It's not feasible for clients with whole life insurance policies For that short length of time. As a result, I would say life insurance policies are better for those ultraconservative and under cash value for a long-term.

[vduggir]

Thanks. But whole life insuranc needs a 10-30 years commitment, right? Bank CD is a place for parking money for short term. Can you elaborate on Tax Vs Fees for a short term?

[linnyh]

WL is what you'd get if the local bank you go to give you profit they make with your money, in addition to guaranteed interest, and have it be tax free to grow and use while getting life insurance coverage while you are at it.

[jasongarcia]

How long are these IUL options contracts? Are IULs credited every month or year? When you pay an IUL premium, how much goes toward fees and how much goes toward options trading?

[michaelmcmann]

What about liquidity of your cash value in a whole life policy? I used to have whole life policies, but if you wanted to borrow your cash value the arbitrage between the loan rate and the crediting rate was a guaranteed-1%. I felt like I could only stare at my cash value and not easily access it. So I 1035’d it into IUL’s which I like much much better as my cash values are now much more liquid.

[AkerMAFIA]

So my question is, you can only get a Loan of the amount of cash you put in the W.L. Policy?

[hassanjadidi]

How about IUL index fees and COI expenses in IUL?

[LIQUIDCIRCUIT]

If their is no fee break down on a whole life .... wouldn't that null and void the policy under disclosure ?