What are the IUL’s Fees? (Full Breakdown and Comparisons)

In today's video, I answer the question, what are the IUL's fees? I give a full breakdown of these fees and compare specific IULs. While comparing, I go over what fees you will have to pay and whether or not the company can change them at any point. I also delve into how those fees compare to traditional investments like 401 Ks or IRAs.

By looking through the fees of one of the leading IUL Policies in the industry, I show you exactly which expenses are guaranteed and which could be changed. After comparing these expenses, I show you how these fees stack up to traditional investments over time. To illustrate, I examine examples of specific policies. Finally, I describe how a properly structured IUL should be designed to maximize cash value growth over time.

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[WWIIPacificHistory]

On this particular policy, you can actually cut the Per Unit Charge by 70% by doing 100k in ‘base’ death benefit insurance and then the remaining 234k death benefit by utilizing the term rider. Since both the base insurance and the term rider are both based on annual renewable term, your COI is pretty much equal. The COI in the all base 334k policy will equal the COI plus the rider fee in a blended 100k base plus 234k term rider blended policy. Even better, Allianz allows a 10 to 1 split between the ages of 18-50 and a 5 to 1 split outside of those ages. So for a 40 year old you can do a 1.1 million DB with 100k of base and 1 million of term rider for the associated increased MEC space for the same Per Unit Charge and surrender charges as if you were just doing a 100k DB policy. For the higher BB yes your COI will proportionally go up, but you get a lot more DB and MEC space which is a good trade off when you’re say less than 60. Then as the cost of the ART goes up in your later years you can just reduce the DB to the 7702 minimums.

[stevelee]

thats the kind of info i needed. thank you

[mikebarnes]

What (if any) cost is generally associated with the rider that allows the death benefit to be used for long-term care?

[JocobsComments]

I like how you answered these questions.

[VerikaD.Developer]

What is the difference between the money paid toward a premium and the accumulated value?

[The_Walking_Asset]

I'm familiar with this carrier. But i was unaware of the Guarantees with the fees you mentioned. Is this listed on their illustration? Or is it located in the policy jacket?

[firthbowden]

Very interested in starting a max funded cash generating IUL. What are your thoughts on front loading the account with for example 50 or 100k? Does that have any pros or cons? Thanks.

[sbk]

Hi. Since you can increase/decrease the death benefit in an IUL, are the fees (premium expense fee, admin fees, etc) also adjusted according to the new death benefit

[jmntherd]

My 403(b) with Vanguard Index fund choices costs total 0.2% plus the expense ratio of the fund (0.02% for institutional index). What is the example policy indexed to? Does that mean its cash value matches the total stock market's value, dollar-for-dollar, tax free?

[JoeC]

thanks.. But cleverly shown COI till age 65 only.. What would COI after 75yrs?. that will skyrocket at that time eroding the wealth accumulated, if any.

Also every year 17-20% gone in fees. Imagine that part of the yearly segment to breakeven, market has to go up 25%+.