Absolutely hands down the most clear, concise, accurate and most importantly honest explanation of WL. Every agent should be required to watch, know and explain this in just this manner to anyone considering a WL policy. In fact agents should be required to show this to anyone before they can put them into a WL policy. Why WL agents always feel they have to go up against IUL’s especially when they are comparing apples to oranges is beyond me but everyone that offers WL needs to know and show this. The best video you have done Matt. And you have a lot of great ones! Keep up the amazing work.
@CashValueLifeInsuranceReviews2 жыл бұрын
Thank you!
@brianmasiello10022 жыл бұрын
Not built for tax free income but as a tax free asset....nail on the head
@passivedividendsoptions2 жыл бұрын
Leveraging it into other businesses, real estate etc is a must with both IUL & WL in my opinion.
@pablo080342 жыл бұрын
Great analysis! One thing that could be worth mentioning is cash value life insurance lines of credit from third party banks-which currently have a loan rate of as low as 3%, using policy cash value as collateral. But even in this case, if their LOC rates go up to just 4%, you *still* might be paying more than the policy IRR. Thanks again, Matt!
@adpetersen2 жыл бұрын
Agreed. I won't argue that WL is the best retirement income vehicle, but if you're using your policy loan feature you're paying too much. A bank LOC is more convenient and much less expensive.
@samsciascia40042 жыл бұрын
@@adpetersen Depending on the bank they have a minium you can borrow
@geraldscheinman33412 жыл бұрын
Then you need to look at whether when take a policy loan is it: Direct or In-direct recognition. That makes a big difference in the net loan rate.
@dennyoviedo4102 Жыл бұрын
Nice , easy to understand in the way that you are showing, good job Matt
@CashValueLifeInsuranceReviews Жыл бұрын
Glad it was helpful!
@kriskris5989 Жыл бұрын
this is a great video, perfectly articulated, I agree with your opinion- WL policy is a tax free asset not tax free income stream.I hate the one size fits all dished out to people. You are doing a great job in educating people on their choices.. I have both Whole life and IUL policies,i purchased each of them for a specific goal.. Whole life- I bought this to park my cash as a storage vehicle instead of putting the excess funds in a bank so I can have access to 90-95% of the cash value through IBLOC,casvalue collateral loans and policy loans..the idea is to grow the money outside the policy,use it as my savings account with an IRR between 3.5-5%..pass on the funds to my kid when I am gone, I definitely don’t plan on using it for income during retirement. IUL- Plan is to grow the funds at a much higher rate compared to Whole life,I would be happy to see a 5.5-7% return in the long run, during my working years,I plan on leveraging the cash in the policy for other investments and use IUL loans for positive arbitrage during Bull markets,during bear markets, i plan on taking loan from my whole life policy to payoff IUL loan or switch loan type from IUL loan to a fixed loan. during my retirement..I plan on using funds in this policy to supplement my retirement income. If there are any funds left when i am gone,the balance will go to my spouse and kid in the form of death benefit..the idea is to pass on money to my kids tax free/in the most efficient manner..
@keyweereyes19752 жыл бұрын
Hi.. first i am thanking you for giving us agents an additional information as well to the clients. However, putting into clients mind or scaring clients that few or more agents are bad because of the commission interest, i definitely disagree because in the illustration it is base on your client wish before you create a premium.. there is a basis when to design their needs and that is financial needs analysis which mostly the agents are doing. I would accept for mis-look or human errors but it does not mean to accuse agents to be bad. we are license and we do have the CODE and ETHICS as part of the contract before becoming an agent. , Our goal is to help the people who needs it. So, the commission is part of our job. And most agents go through trainings, same what your doing now teaching us for free. Agents AS i KNOW are very diligent .. about MISSION FIRST BEFORE COMMISSION. Thank for your free education but I dearly stand for all agents that sacrifices their time and effort to get their licenses.
@CashValueLifeInsuranceReviews2 жыл бұрын
Thanks for watching! We are going based off the 500 policies we review a year. There are certainly good agents out there, and there certainly are uneducated agents.
@astroman302 жыл бұрын
The true IRR on cash value, after fees/commissions, is about 1.5%....garbage. Consumer Reports did this study years ago.
@CashValueLifeInsuranceReviews2 жыл бұрын
Most whole life policies are between 2.5%-4.5% around year 20. Not stunning.
@astroman302 жыл бұрын
@@CashValueLifeInsuranceReviews Not after you factor in fees/commissions. It's about 1.5%....Consumer Reports did a study about it.
@samsciascia4004 Жыл бұрын
@@astroman30 IRR is factoring fees/commissions there is a difference between ROR and IRR...go back to sleep
@astroman30 Жыл бұрын
@@samsciascia4004 Sal, nobody cares you dumb goon. Go put on your adidas jump suit and grease your hair.
@DiscovertourshawaiiLLC2 жыл бұрын
Great info!! I shared with over 10 people!!
@CashValueLifeInsuranceReviews2 жыл бұрын
Thanks for watching!
@st751e2 жыл бұрын
Nice video but the 1.0475% IRR mentioned during the discussion starting at 23:27 is based off of non-guaranteed values, which is 4.00% not the 6% dividend rate he referenced. So, this IRR value is probably closer to 3.00%. It's very disappointing this was stated incorrectly.
@tongtyyang2 жыл бұрын
Thank you for this video!
@6040adam2 жыл бұрын
Good video.. so safe to say, since dividends are historically low, most illustrated values and IRR's will increase over the years? Considering that dividends tend to follow interest rates. Also, the IRR has a lot to do with how the policy is designed, so curious on the policy designs of the policies on this chart.
@wavebusiness15532 жыл бұрын
Very good illustrations, I am contacting you for more questions for sure
@carlomv2 жыл бұрын
The rate of return description in the end is not correct. If you want to calculate specifically rate of return you would do: (970,851 - 926,850) / 926,850 = 0.0474737 * 100 = 4.74737% rate of return You could use the way you showed as short hand for the calculation, but you drop the 1 (which represents returning 100% of your previous principal) and end up with the same 4.743737% return. I think most of the content of this video is very informative, but your concluding calculation seems to completely misrepresent the actual situation. A 4.75% return is significantly different from a 1%, which your video seems to imply. It doesn’t change that if you want to compare IUL illustration returns to WL illustration returns, then IUL will tend to have significantly more potential. That can stand on it’s own merit without misrepresenting the return of WL.
@CashValueLifeInsuranceReviews2 жыл бұрын
Carlo, yes thank you for the correction! The 4.7 rate of return is correct. The point of the video was that there are around 1% guarantees and 4.7% assumed. Both are lower than the loan rates, giving you a negative arbitrage every year. Thanks for watching!
@godessofyouguess2 жыл бұрын
THANNNNNK U FOR EXPLAINING THIS IN THE MOST SIMPLEST FORM! GUD SHIT !!!
@CashValueLifeInsuranceReviews2 жыл бұрын
Thanks for watching!
@kunalamin8 Жыл бұрын
According to current market condition same thing is going to happen with IUL also, if market will not perform well for few yrs then IRR and actual RR will change. I belive 2022 returned must be 0% for iul.
@benb62242 жыл бұрын
If you were going to buy a vehicle would it make more sense to buy it with a policy loan or buy it cash? With negative actual irr, what would be the benefit, if any, of buying with a policy?
@AuroraAsadorian Жыл бұрын
Is the annual outlay of -46,123 after age 65 in this example taken out as a loan? Or is the cash value liquid and these withdrawals are taken out directly out of cash value?
@TheOpinionSports Жыл бұрын
Is whole life more expensive than IUL? Someone on another channel says the opposite.
@aroldovillarreal74422 жыл бұрын
I have 2 policies but both of them I am making making premium and paid up additions payments for the first 5 years and for the next 30 something years I am having to pay the base premium. Is that normal? Compared to the policy you explained on this video where They only paid for 7 years
@CashValueLifeInsuranceReviews2 жыл бұрын
It all depends on the design and what you are trying to do!
@gn81092 жыл бұрын
Thank you for this video and your reply! I am 62 y/o male (uninsurable) with $250,000 CV & DB of $575,000 in Guardian L96 bought at age 34. Plan to retire at 70 what would you suggest at age 70 "if" I want to use the policy for income?
@gregzoller9003 Жыл бұрын
So… your net cost of borrowing in your example is 3%, right? So wouldn’t that be a good thing if you invest the borrowed $ into something that earns more than 3%, say rental property? If your rental earns 6%, you’ve now made net positive 3%, right?
@linnyh8242 Жыл бұрын
This is misleading. The figures you are using is for regular WL, which is not set for maximum cv growth. Also WL cash value growth through dividends is slow for first ten years and doesn't match the dividend rate until around after 10 years, so all those high dividend scales from 1990-2000 aren't really accounted for. After 10 years+, the cv growth through dividends does more or less match the loan interest. Not sure about other carriers but at least that's how it is with NYL. A properly designed policy is around 2% more than the regular WL policy return as illustrated here.
@CashValueLifeInsuranceReviews Жыл бұрын
Thanks for your comment. Do you sell NYL?
@earlhaas67755 ай бұрын
@@CashValueLifeInsuranceReviews 😌
@smbdcry Жыл бұрын
You access your own money through “loan”, that’s why IRR is lower than stated…
@canadaboy62182 жыл бұрын
Totally MInd blowing prsentation on Infiniate banking
@CashValueLifeInsuranceReviews2 жыл бұрын
Thanks for watching!
@6040adam2 жыл бұрын
I respect your experience and knowledge, and i am willing to be wrong on my opinion... but i think you are missing the point as far as focusing on the IRR and policy loan rates. I would argue that if the volume of growth is there, the rates are insignificant. Again, i am a humble guy and willing to be corrected, but IMO you are missing something.
@charlesbrown92132 жыл бұрын
@AE - but the (big) returns AREN'T there for WL, though they are guaranteed. OTOH, with IUL the "potential returns" are there, but no guarantee (other than "zero") are there.