Life insurance

[kittyb]

Hi so I’m new to life insurance I have one offering me IUL 300k for 99$ , another with term of 30 years w the contingency that they can’t deny me if I get sick is about 50$, the last one offers me that I pay 240 a month for 450k and if it exportes they give me my money back that I paid for the past 30 years. So term with cash back. Which one would u guys go for ? I am scared of the 240 because I know I can pay it now but what if I can’t later on in life.

 

[kim5398]

@kittyb Given the budget mentioned, stick with the term for now. Just make sure coverage period lasts you until your kids are through college.

 

[kittyb]

@kim5398 Term with cash return or just regular term with contingency of not getting denierd after it exported ?

 

[kim5398]

@kittyb Term with a conversion privilege is nice assuming the permanent product availability of that carrier is robust.

 

[guacamole]

@kittyb Never IUL

 

[daniel]

@kittyb Do not buy that IUL that is structured terribly and will put you through a lot of risk. I have talked to many clients who bought UL type polices that will not last and endanger of lapsing because they were sold as cheap alternative to whole life and thats what this agent apears to be doing to you. If you want life insurance by Term and invest the rest. If you want a safe place to store cash and leave a legacy to your loved ones, find a good mutual whole life company use that.
I would find a different agent.

 

[charvelguy]

@daniel I work with all the products but IUL isn’t horrible. You just need to properly structure it and be transparent.
I structure it as no lapse guarantee monthly premium. And structure it to there liking of I want to stop paying by age xx. I read everything with them.
Term is great not bashing on it. But everyone has different goals in mind.

 

[daniel]

@charvelguy That's a terrible way to structure IUL, and you won't convince me otherwise. Your policies WILL lapse.

 

[charvelguy]

@daniel You won’t convince me other wise that it will not lapse lol

 

[daniel]

@charvelguy Best of luck to you.

 

[charvelguy]

@daniel You as well my good friend

 

[jmannramirez]

@daniel

 

[jmannramirez]

@charvelguy A minimum funded IUL is terrible on all levels and is bound to lapse. The no lapse guarantee only lasts for a certain amount of years, then you're screwed. The policy won't generate enough cash value internally to withstand the rising cost of insurance when the policyholder gets old.

A person would get much more coverage for the same price if they just bought term.

You're right, IUL isn't horrible and does need to be structured properly. A minimum funded policy is not that. Not even close.

 

[charvelguy]

@jmannramirez Absolutely right.
You can’t hit the min on the IUL and expect it to get cash value. Everything is just case by case.
But that’s why I put the no lapse guaranteed and structure it to last until the XX of years they want.
Hey the minimum is $100 with no lapse guarantee you said you were able to allocate $150 no problem? Let me show you exactly how that would look like.
Then I would look as well to see if it makes sense long run but if it doesn’t I would go back and let them know.

 

[jmannramirez]

@charvelguy Wouldn't your customers be better off buying term and getting much more coverage for the same price? Especially if they only want temporary coverage?

 

[charvelguy]

@jmannramirez Yes and no. Because first gather all the info.
Some clients want long term care or living benefits which some terms don’t even offer.
I’ll definitely mention a term if it doesn’t make any sense for an IUL or whole.
Today I’m helping a client out with a term because it just makes sense

 

[caitlynlovesjesus]

@kittyb Don't fall for return of premium term or iul. Get a 20-35 year level term( depending on what your immediate needs are and how you are doing toward becoming debt free and financially independent), then build adequate emergency fund, Max out Roth IRA'S, pay off house before age 55 -60, live happily ever after.

 

[amytai]

@kittyb

1. Get a 30 year projection of ROI from the IUL (including all expenses, charges, etc).
2. Compare it to you buying $50/mo term & investing the difference ($240-50=190/mo) in a solid performing mutual fund at 9% minimum for 30 years.

 

[easternpresent]

@amytai 9%!?!?!

 

[amytai]

@easternpresent The market averages 10% so don't hype up everything, just be conservative at 9%. Anything else is awesomeness!