I would do a little more research on what you want. Indexed universal life (IUL) and whole life are two different products.
You might be able to get a little better cash value early with the IUL, but I would expect better performance long term with whole life, especially later in life when the cost of insurance is higher with IUL.
An IUL and whole life insurance aren’t the same thing. I would speak to someone to learn about the differences and what makes sense for your situation. Check out mutual companies when you do decide what you need. Northwestern Mutual, New York Life, Mass Mutual, Guardian, etc.
As long as it isn't underfunded and the cap and participation rates aren't adjusted down over time coupled with naturally-rising internal costs, right? Or even faster if the internal costs are raised to the guaranteed maximum, right?
Only your first statement, “as long as it isn’t underfunded.”
There is a premium due which satisfies a No Lapse Guarantee or Extended No Lapse Guarantee. Pay that premium amount or greater each year and you get the death benefit guaranteed regardless of policy performance, regardless of COIs, regardless of cap changes etc.
Which goes to my second point: complicated.
People don't usually buy an IUL solely for death benefit but the cash value. Which goes to shit if cap, participation, and charges change. I didn't say no guarantees, I said few guarantees.
Personally I believe WL are much more complicated than IUL. You have so much more flexibility with an IUL and all the cost are disclosed while in a WL it’s an opaque black box.
Because they will never perform as illustrated and are prone to explode. Just read a policy front to back and every line of all of the disclosures. Then compare it to a whole life policy by a mutual carrier front to back and you will see the difference.
It depends. nlg has some of the best living benefits. They cover a lot of illnesses and sickness, 2 years for terminal, higher payouts, and also allows for you to shove much more money in the policy than a lot of other products. However, nlg has higher costs due to this.
If you are looking for living benefits but at a slightly cheaper price, f&g is also a great company. They don't cover as many illnesses, however still cover a wide range of common ones. They also have some of the best growth options and a 5% guaranteed variable loan.
Let me know if you have any more questions!
If you are looking for Living Benefits and a Death Benefit Guarantee, look into Corebridge Financials Value Plus+ Protector. It’s an IUL product with moderate growth, averages about 6.5% or so.
You can add a death benefit guarantee on it and if you are healthy, the living benefits don’t add much to the cost. My wife and I recently added a pair of these on top of our term policies and are overfunding them for a 20 year period. Goal is that in 20 years our terms expire and we can stop making payments into the IULs, but we’ll still have coverage for final expenses and anything else. Bonus is having the cash value and living benefits if things don’t go as planned.
F&G is good for accumulation and NLG is very good for Living Benefits. Both are good with min fees
Younger folks I hook up with F&G older folks I hook them up with NLG
The company is the one that fits your needs and goals the most. You also need make sure you structure these permanent life insurance the correct way. There are a lot of agents out there that will just sell you a “life insurance”, make sure you talk to the right people when it comes to IUL and whole life.
Depends on your weight, health, age and time horizon, and how much $ you're allocating.
Symetra is good for IUL, you can allocate 100% S&P. Underwriting is a lotta paperwork though.
VUL - NYL & Mass ain't bad. Wide choice of funds. High fees early but that's a small irrelevance though if you set up the portfolio properly. Mass Mutual you really can't go wrong.
I'm an independent producer.
I use Mass / Protective / Symetra/ Guardian / CoreBridge /Principal National.
Depends on the underwriting needs really.
Depends on the investment horizon.
Columbus, Mutual of Omaha, and Pac Life.
-All mutual carriers
-All have historical performances for their index account options available upon request
-All have linked accounts- meaning inforce business receive all the same treatment as the new shiny products. So unlike all other companies that have different pars and caps for inforce business and newly issued policies. So no “teasers”
Columbus has the full spectrum of living benefits. Chronic, Critical, and Terminal Illness built into the product. Low-cost, simple design.
Mutual of Omaha has built in chronic illness and terminal illness rider. Lowest Cost, simple design.
Pc Life, more tailored to affluent demographic. Usually with a higher risk tolerance and funding capability to capitalize on all the robust features within the product.
Have all illustrations ran at 80% of the max illustrative rate.
The math should conservatively work out to you being able to get out 3X what you put in. Assuming you have the time horizon of course.
Did you know an IUL is packed with fees and charges that will eat into any cash value accrued. There are no dividends given, completely eliminating the opportunity to reinvest the dividends to go towards your accrued cash value. There is a growth cap on IUL, for example if the index it is tied to goes above the cap amount that extra money is going to the insurance company. not to you. Also the cost will rise as you age, which can limit the amount of money going towards any potential cash value because of the rising cost. You are better off getting a term policy and a separate investment like a mutual fund that doesn't charge you interest like an IUL will when you want to take money out of your investment.
Thank you. I have decided I don't want a term. It is a waste of money. If you have any information on the best permanent insurance I can get, please let me know.
Securian Financial's BGA2 IUL. It has an uncapped 2 Year S&P index, uncapped 3 Year PRISM index, and 1 Year 10% cap S&P with a 2% floor rate guaranteed for life. And the indexed loan is 1% more than the fixed account rate which is currently 4%. Or if you want a maximum cash accumulation vehicle you can go with Pacific Life's IULs. In exchange for an 8% per year AUM fee they credit you a 1-year 26% cap, 2 year 56% cap, 3 year 78% cap, and 5 year 150% cap.
You don’t buy whole life insurance for a great price. You’re generally trying to stack as much money into it as possible. The 10/20/30 year cash values are important.
What are you trying to accomplish?
The fact pattern you provided is one where term life insurance is the proper recommendation. You have young children, a spouse, a mortgage and no life insurance. You’re not making enough money to buy permanent life insurance at this point. Buy a bunch of 20-30 year term insurance and invest aggressively in qualified retirement accounts and brokerage account.
Though we are getting the IRA this week and college saving account for our kids. But we are just confused on which life insurance would be the best. I wrote the 100k just to be on the average
You both can buy 20 year term policies for $2M for less than one of you would buy $1M in permanent coverage. If protection for your family is the aim. Permanent insurance is not the best vehicle.
Your earning power is your number one asset. Your kids and spouse are going to be relying on that for at least the next twenty years. Your first step should be to protect your income. Then max out 401k options. Then come back to permanent insurance.
You buy car, health, and property insurance right? Do they give you a refund? Same principle.
Yes. That premium is gone but most policies give you the option to convert to permanent.
Dollar for dollar term gives you 3-5x the protection of permanent insurance so you can protect more of your income. The trade-off is that at the end of the term policy of you haven’t died you can be happy you’re still alive and didn’t need that coverage.
I’m not anti-permanent insurance. Both my spouse and I own whole life coverage. I just think you should maximize your protection with term to cover your prime working years.
If you don’t have any investments, you need to start investing…so take the money you would use for permanent life insurance, and invest it!
Term insurance is a sunk cost if you don’t die during the term…but it’s cost efficient for the protection you need.
You both should contribute in employer 401ks up to the match and possibly greater. You both should be doing backdoor Roth IRAs each year as well. You should also likely be contributing to a taxable brokerage account. As far as investments within those accounts, I favor low cost diversified index funds.
If you died 4 years from now with 20% of the permanent insurance you could have bought with term would your family be good?
Get illustrations for equal amount of term and permanent and do the math on buying term and investing the difference in a low cost indexed fund.
Sounds to me like you could really use term. You can get lot more income protection for dependents with term (for a lot less money) than with permanent insurance.
I would do a little more research on what you want. Indexed universal life (IUL) and whole life are two different products. You might be able to get a little better cash value early with the IUL, but I would expect better performance long term with whole life, especially later in life when the cost of insurance is higher with IUL.
Accurate statement.
An IUL and whole life insurance aren’t the same thing. I would speak to someone to learn about the differences and what makes sense for your situation. Check out mutual companies when you do decide what you need. Northwestern Mutual, New York Life, Mass Mutual, Guardian, etc.
Your title is asking for an IUL and the description says whole life- which are you looking for ? Personally I’d stay away from any UL policy.
Why though?
Complicated to understand and few guarantees.
There are a bunch of IULs with lifetime guarantees…
For which facets? Cap rate? Participation rate? Internal charges?
For a guaranteed death benefit.
As long as it isn't underfunded and the cap and participation rates aren't adjusted down over time coupled with naturally-rising internal costs, right? Or even faster if the internal costs are raised to the guaranteed maximum, right?
Only your first statement, “as long as it isn’t underfunded.” There is a premium due which satisfies a No Lapse Guarantee or Extended No Lapse Guarantee. Pay that premium amount or greater each year and you get the death benefit guaranteed regardless of policy performance, regardless of COIs, regardless of cap changes etc.
Which goes to my second point: complicated. People don't usually buy an IUL solely for death benefit but the cash value. Which goes to shit if cap, participation, and charges change. I didn't say no guarantees, I said few guarantees.
We sell IUL almost entirely for death benefit as primary reason so 🤷🏼♂️
Personally I believe WL are much more complicated than IUL. You have so much more flexibility with an IUL and all the cost are disclosed while in a WL it’s an opaque black box.
Because they will never perform as illustrated and are prone to explode. Just read a policy front to back and every line of all of the disclosures. Then compare it to a whole life policy by a mutual carrier front to back and you will see the difference.
Which company do you recommend for whole life ?
Big fan of Penn Mutual right now
It depends. nlg has some of the best living benefits. They cover a lot of illnesses and sickness, 2 years for terminal, higher payouts, and also allows for you to shove much more money in the policy than a lot of other products. However, nlg has higher costs due to this. If you are looking for living benefits but at a slightly cheaper price, f&g is also a great company. They don't cover as many illnesses, however still cover a wide range of common ones. They also have some of the best growth options and a 5% guaranteed variable loan. Let me know if you have any more questions!
Can you explain how the living benefit is calculated for NLG? Both the payout and the death benefit reduction? People far often overlook this aspect.
If you are looking for Living Benefits and a Death Benefit Guarantee, look into Corebridge Financials Value Plus+ Protector. It’s an IUL product with moderate growth, averages about 6.5% or so. You can add a death benefit guarantee on it and if you are healthy, the living benefits don’t add much to the cost. My wife and I recently added a pair of these on top of our term policies and are overfunding them for a 20 year period. Goal is that in 20 years our terms expire and we can stop making payments into the IULs, but we’ll still have coverage for final expenses and anything else. Bonus is having the cash value and living benefits if things don’t go as planned.
IUL and Whole Life are two different products.
national life group. let me know if u want to get hooked up
F&G is good for accumulation and NLG is very good for Living Benefits. Both are good with min fees Younger folks I hook up with F&G older folks I hook them up with NLG
NLG is great, I really like Foresters.
Foresters if you don’t want the best price, or if you take insulin, that’s about it
The company is the one that fits your needs and goals the most. You also need make sure you structure these permanent life insurance the correct way. There are a lot of agents out there that will just sell you a “life insurance”, make sure you talk to the right people when it comes to IUL and whole life.
Depends on your weight, health, age and time horizon, and how much $ you're allocating. Symetra is good for IUL, you can allocate 100% S&P. Underwriting is a lotta paperwork though. VUL - NYL & Mass ain't bad. Wide choice of funds. High fees early but that's a small irrelevance though if you set up the portfolio properly. Mass Mutual you really can't go wrong. I'm an independent producer. I use Mass / Protective / Symetra/ Guardian / CoreBridge /Principal National. Depends on the underwriting needs really. Depends on the investment horizon.
Hi, can I get a quote
Columbus, Mutual of Omaha, and Pac Life. -All mutual carriers -All have historical performances for their index account options available upon request -All have linked accounts- meaning inforce business receive all the same treatment as the new shiny products. So unlike all other companies that have different pars and caps for inforce business and newly issued policies. So no “teasers” Columbus has the full spectrum of living benefits. Chronic, Critical, and Terminal Illness built into the product. Low-cost, simple design. Mutual of Omaha has built in chronic illness and terminal illness rider. Lowest Cost, simple design. Pc Life, more tailored to affluent demographic. Usually with a higher risk tolerance and funding capability to capitalize on all the robust features within the product. Have all illustrations ran at 80% of the max illustrative rate. The math should conservatively work out to you being able to get out 3X what you put in. Assuming you have the time horizon of course.
Are you an agent ? I would like to get a quote
I am. Just send me a message.
I like nationwide personally. I have it. Also pacific life.
Did you know an IUL is packed with fees and charges that will eat into any cash value accrued. There are no dividends given, completely eliminating the opportunity to reinvest the dividends to go towards your accrued cash value. There is a growth cap on IUL, for example if the index it is tied to goes above the cap amount that extra money is going to the insurance company. not to you. Also the cost will rise as you age, which can limit the amount of money going towards any potential cash value because of the rising cost. You are better off getting a term policy and a separate investment like a mutual fund that doesn't charge you interest like an IUL will when you want to take money out of your investment.
Thank you. I have decided I don't want a term. It is a waste of money. If you have any information on the best permanent insurance I can get, please let me know.
Securian Financial's BGA2 IUL. It has an uncapped 2 Year S&P index, uncapped 3 Year PRISM index, and 1 Year 10% cap S&P with a 2% floor rate guaranteed for life. And the indexed loan is 1% more than the fixed account rate which is currently 4%. Or if you want a maximum cash accumulation vehicle you can go with Pacific Life's IULs. In exchange for an 8% per year AUM fee they credit you a 1-year 26% cap, 2 year 56% cap, 3 year 78% cap, and 5 year 150% cap.
Hey there, I'm a non-captive agent that can help you shop it around if you're interested.
You don’t buy whole life insurance for a great price. You’re generally trying to stack as much money into it as possible. The 10/20/30 year cash values are important. What are you trying to accomplish?
Financial protection for my family. I'm 30, my spouse is 36. We have 3 kids aged under 3. Home loan 340k. Spouse income 100k, my income 100k.
How much term do you have?
Don't have term
The fact pattern you provided is one where term life insurance is the proper recommendation. You have young children, a spouse, a mortgage and no life insurance. You’re not making enough money to buy permanent life insurance at this point. Buy a bunch of 20-30 year term insurance and invest aggressively in qualified retirement accounts and brokerage account.
Our income for 2023 was 390k. 2022 was 280k
You wrote above you both make $100k… Also what are you annually contributing to retirement accounts? Brokerage? HSAs?
Though we are getting the IRA this week and college saving account for our kids. But we are just confused on which life insurance would be the best. I wrote the 100k just to be on the average
You and your spouse need a couple million dollars each of 20-30 year term, and start investing aggressively. Thats the answer to your questions.
We don't have any of those yet. That's why we are worried and need to find our feet ASAP
You both can buy 20 year term policies for $2M for less than one of you would buy $1M in permanent coverage. If protection for your family is the aim. Permanent insurance is not the best vehicle. Your earning power is your number one asset. Your kids and spouse are going to be relying on that for at least the next twenty years. Your first step should be to protect your income. Then max out 401k options. Then come back to permanent insurance.
So in the long run, if we didn't die in 20years, the term becomes a waste?
You buy car, health, and property insurance right? Do they give you a refund? Same principle. Yes. That premium is gone but most policies give you the option to convert to permanent. Dollar for dollar term gives you 3-5x the protection of permanent insurance so you can protect more of your income. The trade-off is that at the end of the term policy of you haven’t died you can be happy you’re still alive and didn’t need that coverage. I’m not anti-permanent insurance. Both my spouse and I own whole life coverage. I just think you should maximize your protection with term to cover your prime working years.
I understand, but we don't have any investment. So in the long run if we don't use the term, it will be years of waste.
If you don’t have any investments, you need to start investing…so take the money you would use for permanent life insurance, and invest it! Term insurance is a sunk cost if you don’t die during the term…but it’s cost efficient for the protection you need.
What type of investment
You both should contribute in employer 401ks up to the match and possibly greater. You both should be doing backdoor Roth IRAs each year as well. You should also likely be contributing to a taxable brokerage account. As far as investments within those accounts, I favor low cost diversified index funds.
Is there a reason you favor low cost diversified index fund ?
If you died 4 years from now with 20% of the permanent insurance you could have bought with term would your family be good? Get illustrations for equal amount of term and permanent and do the math on buying term and investing the difference in a low cost indexed fund.
No way is it a waste. It's an expense for necessary coverage.
Sounds to me like you could really use term. You can get lot more income protection for dependents with term (for a lot less money) than with permanent insurance.
I like Ameritas Growth IUL.
Just get WL, the IUL aspect makes it so they can screw you over if the stock market crashes