In this case, the bad part of universal life was the agent. SMH

This is what happens when agents sign up clients on minimum funded universal policies. Those policies are a ticking time bomb. A good agent would had overfunded the policy right before becoming a modified endownment contract and also shown the client a schedule to show what the cost og insurance is in the later years in life. Most agents only show the non guranteed numbers which are only projections and never show if there are any lapses that show on the illustration. I explain how universal life works in my youtube.

Keyword here what i hear is the agent told him he will be able to receive money in 10 years and based on the 10 years he paid only 33,000 about $275 per month. FYI for people who are new to this. All Life insurance policies work like Term even permanent policy.. As you age your cost of insurance increases. Difference is in Term Insurance you have a fixed premium amount and in Permanent Policy Part of the premium goes to cost of insurance and part to Savings. However as you age and you are only paying the minimum payment there is a potential for the policy to lapse unless you are buying this for long term. You have to give these policies time to accumulate growth… I am upfront with my client if you are looking for this for short term i would never recommend this. because most UL or IUL policies take about 12-15 years based on the amount you contribute to level off at that point your Cost of Insurance and accumulation tends to level off and you start to see amazing growth. Keep in mind even though you are not seeing cash value increase in the early years part of the extra savings portion is actually getting added to your death benefit. You usually start to see growth after 4-5 years but in order to level off the amount you put in vs the cash value you have to give these policies on avg 12-15 years. I have IUL policy it gives me living benefits for free (chronical, terminal, and critical illness) + if you look at the returns of the index for last 25 years it is avg 7-8% . Based on the limited information provided here you can guess 2 things either he was planning to use the money within 10 years 2. He may or may not wanted to contribute but certain dollar amount. In either case… It is a good product.. I cant blame company. It could be the agent was not knowledgeable or he just wanted to sell and make money on policy. Based on the limited information i would not have sold this gentleman the UL knowing he wanted to pull money out in 10 years or less. He would have been better off buying a Term Insurance with Living Benefits without understanding what the clients needs were at the time.. Its always good to first understand what clients needs are understand their insurance needs. Do a complete FNA- Financial Need Analysis and then make suggestions. I hope this helps

That's Why You really want to sit down with a Real Broker.
All policies are good but not good for everyone.
Is not about The perfect plan is about the perfect questions and answer your Broker Asks you.

This is soooo sad!!

Universal Life policy is the most affordable option to have a permanent coverage with no further medical exams, renewals or premium hikes. For more information – https://www.affordableinsurance4everyone.com

The company didn’t screw him, the agent did. Shame. 1 person is making the whole company look bad. Poor guy

According to my research only Whole Life or Custom Whole Life are truly permanent. UL and all it's variants are designed to collapse when you are old and need it most because they are age based policies and will become unaffordable.

There are multiple factors that even make up Universal Life or Whole Life insurance and being this person had a policy for what 20 years and didn't read it says a lot. Plus the news cast is full of holes where a UL policy can easily fit in to anyone's plan. It is all about how the "Cost of Insurance" is calculated and in this case was done a Yearly Renewable Term so it increases yearly with the idea of adding "more" premium over the long term then the actual insurance's cost which will create a cash value if it grew. As it very easy to know this person never completed a review with this advisor or any other this is generally his issue for taking the cheapest option available for a UL policy. As per term – well term goes up in specified yearly increments as well whether being every 10, 15, 20, or even 30 years there is a renewal and cost increases where the majority of people cannot afford anyhow so this person will still be in the same boat. He had had Term he would have to convert to a UL, WL, or a Term to 100 product where the cost of insurance is Level and never changes. When a company takes over a policy from a old carrier whether it be Transamerica "IVARI" or Manulife or Sun Life they are bound to the original contract which is governed so where is the problem that now IVARI can fix this far in the future because someone did not read anything that was given to them and not to mention ever review their annual statement which is always mailed.

Overall shitty news casting

Yeah, that sounds just like TRANSAmerica (FYI: Transa means scam in spanish)

Get a DAMN Inforce Illustration folks! Every few years.

Php is next they sell this crap

If you do your compliance training regularly, then you know that policies issued over 20 years ago probably were based on different market assumptions and therefore need to be reviewed by a financial professional. This applies to all financial strategies and goes without saying. That's first of all. Second of all, the video presents only the point of view of the consumer. It says nothing about the contract. For instance, I would like to see if the he was making the guideline payment or just the minimum payment (I suspect it was the latter). Lesson learned: always do annual reviews. When approached by a financial professional, do not dismiss him by saying "I am all set". That's just dumb.

If this individual would have purchased a term policy for the same coverage amount on the same day, and then a new term policy the day the first one expired to continue his coverage, and depending on the terms maybe a third to get to present day, he would've paid more than double and likely close to triple in premiums over the UL and have the exact same cash value to show for it today. $0.  He also likely could not afford whole life insurance for his entire insurance need, had he done so, he would've paid in over $100,000 by now, however he would be showing close to $120,000 in cash value and likely not need to continue paying premiums on his $150,000 policy.  Moral of the story: Do your homework, get multiple suggestions from qualified and licensed professionals, and read your contract before you sign it.

This company not only changed its name, because a lot of complaits, but it is a company that offers a lot of Universal Life Insurance, and whole, and that is very profitable for the agents but not good for the clients

I'm so tired of hearing this "it wasn't structured properly" bs from insurance agents.  I've been doing this 13 years and haven't seen ONE universal life policy that doesn't lapse yet.  I haven't ran across ONE life agent that will meet with me and their client to discuss what they sold them when it's time to meet.  5 truths of ALL cash value policies. 1. Their is NO SAVINGS typically in the first 1-4 years which equates to a negative 100% return on ur money. 2. true return after fees, fees, and more fess is dismally low. 3. you have to use policy loans (which they love to call tax-free money – since when have u ever paid taxes on ANY loan you took out) to get access to any of your cash.  4. They all say they have the right to delay your loan request for up to 6 months (not a very good back up plan for $$ if u needed it) and 5. You almost always lose 100% of the cash value if you die.  The math is NEVER on the side of the consumer.  Listen to people who know what they're talking about like Dave Ramsey, Suze Roman, Art Williams etc.  Buying low cost level term insurance and investing on your own outside the policy is absolutely the right thing to do! 😉  And like i said, I have boxes of these 'improperly structured' policies from actual human beings I've helped after they got sold this stuff.  So for someone who actively does this for a living to say they haven't seen one UL, VUL, or IUL that doesn't eat up the savings, or haven't ran across one agent that sold it that doesn't know what they're doing, ya'll got a pretty big problem on your hands when an educated person comes along to see your client! 😀

Unfortunately – this is the fault of the original AGENT, either not understanding or simply not explaining anything properly to their client. We see this when an inexperienced or improperly trained agent doesn't know how to build the policy correctly. Universal Life policies "can" last a lifetime. This one was probably built on wrong estimated numbers and was sustainable for a shorter period of time, than it could have been. If you look at the illustration provided by an agent, you should always make sure that "cash values" don't start to go down, or they go to zero's, before a planned date of retirement – or the planned date you have specified to your agent. These plans can be strong and last to age 120.

There are a number of factors that have not been mentioned in this video that determined why this man has come to this predicament.
In simple terms, there's a lot of holes in this news forecast. I will even go as far to say that this video is tailored to scare the public from choosing ULI and promote the sales Term Insurance instead.

Why promote term? So that the insurance providers can keep your money.
And as the insured gets older, he or she would have a higher cost of insurance, which presents insurance companies an opportunity to make more money.
For this reason, insurance providers with good motives promote ULI to allow people to get back their money

This is typical of cash value insurances. I bought a hybrid cash value life insurance policy once. It was about $15 more per month than a Term policy quote and I got suckered into it at $45 per month. They promised me my premium was renewable at the same rate. They promised me cash value at the end. BOTH were lies. They had the fine print and an out. Level term insurance is the best by far. I can't imagine how much I would have gotten ripped off if I bought full cash value policy. What sounded so good, was they told me it was only about $10-20 more than plain term insurance, so I took the bait. In reality they gave me nothing for the extra cost.

Almost got f***ed by these guys. Thankfully I knew before signing up that I should do a simple google search to see what these bastards are all about. Thanks for the video. Saved me hundreds.