Paid-Up Additions (PUA Rider) + Term Rider for Max Infinite Banking Whole Life Cash Value

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Paid-Up Additions (PUA Rider) + Term Rider for Max Infinite Banking Whole Life Cash Value

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Күн бұрын

How paid-up additions (PUA rider) along with a term insurance rider can maximize Whole Life cash value for your infinite banking strategy.
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Timestamps:
0:38 - Race Car analogy describing how a paid-up additions rider works with a term insurance rider and Whole Life dividends to make up infinite banking work.
1:18 - How paid-up additions and a PUA rider turbo-charges your Whole Life vehicle for infinite banking
2:47 - How Whole Life insurance Dividends are like a performance additive for IBC
4:49 - Case study set-up showing the same Whole Life policies with different amounts of paid-up additions (PUAs) and term insurance riders.
6:14 - Why you often hear how non-IBC Whole Life insurance is expensive
8:20 - Seeing how a Term Insurance rider waters down overall costs & increases cash value growth
9:54 - Showing how Infinite Banking Whole Life can be flexible when adding the max term insurance rider & PUA Rider.
12:51 - What if you can't pay your max PUA rider premium but want to add those paid-up additions later
Take a deep dive into paid-up additions and a Whole Life insurance policy's PUA rider so you can boost cash value with the infinite banking concept at:
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Have questions or insights?
Type them into the comments sections below…

Пікірлер: 53

@BankingTruths 5 жыл бұрын

Was this helpful for understanding how Whole Life works? What did you like best?

@leavealegacynotdebt4812 4 жыл бұрын

Hi "Hutch", my name is Michael Lucy - I spend much time explaining CVL to the public (clients, workshops, etc.) ... The challenge is ALWAYS "dumbing down" the concept for people to understand. This video is AMAZING (best video ever) for explaining the concepts. The illustrations at the end are AMAZING for the detail, overall this is an A++ piece of content. Would you mind if I embedded this on my site and wrote an article to support what's in the video?

@leavealegacynotdebt4812 4 жыл бұрын

One other thing to note/ask ... In your scenario with Base + PUA Rider + Term Max, your cash value was above water on year 5. I personally have only seen this with ONE carrier/policy in the marketing, you may know of more (we probably both know who the one I am referring to) ... One factor that I use as an IUL/Whole Live CVL performance indicators is "How close to the 7-year milestone do you break even with cash value, the "7 Pay Test"? ... My assumption had always been that the "7 Pay Test" may be simplified for the average person by simply saying ---> "Cash value total can't be greater than total premiums paid into the policy for the first 7 years." ---> I have never found a source (or resource) that has definitively confirmed this assumption ---> In your scenario, you blew that assumption out of the water. Do you have any insight (FACTS) about the 7 pay test and whether my "7 Pay Test" assumption is correct?

@BankingTruths 4 жыл бұрын

Thanks for the kind words Michael. You are welcome to link back to the actual video as it's hosted on YT or this link bankingtruths.com/whole-life-riders/.

@BankingTruths 4 жыл бұрын

We have always been able to front load beyond the "level max 7-pay" to a more stacked 4-5 pay without violating MEC and creating an earlier breakeven crossover. Be sure to check out our free news letter for advisors at bankingtruths.com/for-advisors/

@leavealegacynotdebt4812 4 жыл бұрын

@@BankingTruths done - TY!!!

@CryptoDachshund 4 жыл бұрын

Videos on this subject are usually lacking in the details. The specificity in this one was excellent!

@BankingTruths 4 жыл бұрын

Thanks Tom. That's how we roll!

@stephenfioirno6040 5 ай бұрын

I bought a Variable Whole Life policy with investment options for my daughter when she was 8 years old. The premium is $228 per year and the DB started out at $25K. Now 40 years later the DB is over $90,000 and the cash value is $34K. I am the owner and beneficiary for now and will sign it over at a later date. The earlier you start with LI the better and premiums are low. She works but doesn’t have any group coverage.

@Sickwidit284 2 жыл бұрын

This is a great video. This analogy is great because you really are building an savings vehicle to get to the finish line!

@canadaboy6218 5 жыл бұрын

Totally Awesome presentation !!

@BankingTruths 5 жыл бұрын

Thanks Bobby, glad you enjoyed it.

@eduardoborja7789 4 жыл бұрын

Very good presentation, on spot. I like how the PUA was explained well and the DOT rider

@MattFBA 4 жыл бұрын

This was the best presentation on high cash value

@investbrilliantly- 3 жыл бұрын

Great presentation. It really helped me understand the pros & cons of different policy configurations. I have scheduled a consult with you.

@heyerstandards 4 жыл бұрын

It's a good analogy. Thanks for posting.

@jackmcqueen979 Жыл бұрын

Excellent Video Hutch.

@tamdangngoc1738 2 жыл бұрын

Some segments in the video are stamped not adjacent to each other

@johnsavell7056 Жыл бұрын

Cool stuff. What are the percentages for the base and Paid up additions . 4060 , 1090 ??

@BankingTruths Жыл бұрын

It's all base, but a 10-pay

@warrenbarnes9653 3 жыл бұрын

Great video, Hutch! In your most “supercharged” example, is the allowed total premium set to equal the MEC limit? Is this case study based upon the newer PM whole life product? I appreciate your showing all of the IRRs. Most of the other UTube channels that focus on high CV whole life insurance do not provide IRRs. Thank you for your fine work./Warren

@BankingTruths 3 жыл бұрын

Warren, it's on the last gen product, but the current one is close. Glad you enjoyed it

@tonygwynn6436 4 жыл бұрын

Love the presentation with the car

@BankingTruths 4 жыл бұрын

I had to rack my brain for a simple analogy to explain such a complex mix of variables. Glad it spoke to you, Tony.

@harindervirk7877 Жыл бұрын

Hi I have a question. I would like this same policy in Canada. Do you know companies that can do this. I know it’s available but really hard I’m getting the run around in fact the agents don’t even want to show the PUA rider or even the term rider. Can I be your client? Really could use your honest help. Your videos are so informative and knowledgeable.

@BankingTruths Жыл бұрын

I wish we had a trusted referral partner in Canada, but we don't. Let me know if you find one

@michaellinton2676 3 жыл бұрын

20 years ago my mother took out a term policy at $300,000 and it's up in January. It's a long story but we missed the conversion Rider to switch it over to whole. My mother has consistently paid into the policy every month on time and put all that money into it and in January it's up. At this point is there anything that can be done. I talk to a guy about a year ago that said the same scenario happened to him and his mother and that his mother received a notice about 3 months from the policy being up that if she wanted to switch it over from term to whole she could do so.this doesn't make much sense to me why a company would do this unless they just wanted to keep the customer. Well we're two months away from our policy being up and we haven't received a notice. That's probably because our policy is for a lot more money.My mother says we might have to just let this policy go and that she's going to get another one. I've read online you can at 74 but it's not going to be for $300,000 at the rate she had it for. What could we do at this point?

@BankingTruths 3 жыл бұрын

Conversion is not an option You could look into selling her term policy on the secondary market

@MrTZone8891 4 жыл бұрын

Quick question: upon a person's passing, will the dividends AND death benefit be paid out to the beneficiaries OR just the death benefit?

@BankingTruths 4 жыл бұрын

Technically no, but substantively yes because when you buy paid up additions it adds to you cash value, buy also multiplies that cash value with extra death benefit to the tune of 2x - 4x more than how much your cash value grows by. Let me close by just saying if you really want to get the most out of your life insurance, just die early. Your family makes out really good! However I can't seem to get my clients too excited about this proposition

@astroman30 3 жыл бұрын

@@BankingTruths The real truth is that the insurance company only pays the death benefit while KEEPING any cash value. In other words, all that money that is paid into the cash savings is forever gone. Scam.

@BankingTruths 3 жыл бұрын

Is that the real truth though? Could it just your opinion (most likely borrowed from so many others before you)? So if a client buys a $500k WL policy, pays $10k in premium, dies, and heirs get $530k doesn't that negate your claim? With your logic, I should only rent my house because someday when I sell it, I don't get the full value of my house plus my down-payment back. What a scam. Listen bud, if stocks/bonds/cash + term tickles your fancy, go forth and prosper! But don't come on here with your misinformed opining and claiming it as "the real truth."

@astroman30 3 жыл бұрын

@@BankingTruths And yet, you don't deny that the family doesn't get BOTH the DB and CV. This is not an opinion, it's a fact. You charge for a policy AND a savings account but the beneficiaries won't get both, and you're trying to convince people that it's a good buy? We all know that you crooks love selling this garbage because of high commissions. What a sophomore analogy you came up with on renting. You nimrod, if I'm renting a house, at least I know that I'm only renting. I'm not being charged a "savings account" while I'm renting. You weasel salesmen love ripping off people. I bet you sell timeshares, too. I'm here to warn people of low-lifes like you trying to scam them. Thank God for Dave Ramsey, Suze Orman, Smart Money Magazine, Chris Hogan and a slew of others who call you idiots out.

@BankingTruths 3 жыл бұрын

You're rude. You should learn from the people you idolize how to at least have a respectful debate. Your statements are not factual. We slash commissions to the lowest level we can using term riders with Whole Life. Also PUAs often do provide more death benefit than was originally purchased and often more than their cash value. With IUL you can even choose option 2 where you actually DO get the death benefit and the cash value if that's what you really want. Stop regurgitating and explore the facts. Or maybe just go argue about politics on FB. Seems like it's right up your alley

@kunalamin8 Жыл бұрын

What happens if i stop contributing for PUA?or just take the dividend check?

@BankingTruths Жыл бұрын

You can either do what's called a premium offset or reduced paid up (RPU). See bankingtruths.com/RPU for more details on each

@kunalamin8 Жыл бұрын

@@BankingTruths Thanks for reply. I still didn’t get the clarity about how come I’m eligible for premium off set since dividend buys PUA ?and if i select RPU it might reduce my death benefit.

@BankingTruths Жыл бұрын

@@kunalamin8 I suggest you book a meeting @ BankingTruths.com/schedule to help you put all the moving parts together. I'm sure you've found that we have the best content available, but we've found that answering very granular questions like this via chat leads to more questions actually (hence we're already replying to a reply). All of this will be much more productive in an interactive setting when you're ready.

@stephenfioirno6040 5 ай бұрын

U can use your dividends to reduce your premiums, buy paid up additions or take the dividends in cash. There is a taxable event on taking dividend in cash, not a lot but it does exist. Also make sure if you convert a WL policy to another it might cause a Modified Endowment. If you take any money out over your cost basis it is taxed as ordinary income. Consult a qualified insurance representative

@lovethybodyco7635 4 жыл бұрын

Hi I have a quick question my dad got insurance for me when I was 8 until 18, I’m 27 now and it’s paid off is it possible I can transfer it to a whole life insurance policy ?

@BankingTruths 4 жыл бұрын

Hi, it is possible, but may not be ideal depending on what kind of policy you have already paid up. Feel free to get an objective analysis with our team at BankingTruths.com/Schedule