What about whole life, or comprehensive whole life insurance?

Which companies are considered good quality whole life companies?

@Jason Brown , +Jason Brown :

It's interesting Jay you fail to answer what should be a very simple question I asked you below:
"For your IULs, at what annual rates of return do you illustrate them for your clients?"
Your silence suggests volumes.
Jay, if you're ever illustrated an IUL at over 4% and you failed to tell your client that he's in danger of underfunding his IUL, then you've failed to act in the best interests of your client. Full stop. No matter Jay how many decades you've been in this biz.
Dear reader. When a Jay out there pushes an IUL on you, please ask him THIS simple question: "Exactly which investments exist on Earth that will reliably deliver the 6%, 7%, and higher annual return rate that agents routinely illustrate IULs? Which such investments will reliably deliver such high rates for the 40, 50, 60, and more years you expect to hold your IUL?
The Jays of the world will fail to honestly name such an investment. Why? Because *it doesn't exist*.
Folks, it's as simple and dreadful as that.
It's a near guarantee your agent will vastly overillustrate your IUL, causing you to chronically and massively underfund it. This will cause your IUL to implode 10, 20, 30 years hence, and you LOSE EVERYTHING: your Death Benefit and the $100,000s you dumped into it.
This explains why you most likely fail to find even one IUL that's even a decade old.
This isn't about "WL vs IUL." This is about the simple and damning math. It's about institutionalized carrier, B/D and agent abuse of clients on a scale we've never seen before. It's about highly complex products that very weak and decentralized regulatory agencies can't keep up with.
Once you get your non-answer from Jay, please go get your Whole Life policy from a reputable mutual. Something you really can shove in the drawer and forget about.
Thanks for reading.
–William

So are you a true unbiased life insurance professional and/or financial adviser OR are you just another licensed agent that has bought into the idea (and myth) that whole life insurance is the best and only type of permanent life insurance that people should buy?? Dan, you seem like a pretty smart and nice guy, but I have to say, you're a little misinformed about some of the details within UL, IUL and VUL. Generally speaking, I advocate for UL, IUL and Whole Life insurance. Personally, I tend to steer clear from VUL, primarily because of the risk and expenses. VUL still has its place for some situations, though. The fact is when IUL was introduced in the United States in 1997 the insurance industry finally introduced another "fixed" insurance option for folks who would like permanent insurance with some better upside potential without the stock market risk. The difference between you and me is pretty simple — I understand the pros and cons of both UL/IUL and whole life and I do NOT exhaust or spend so much energy and time trying to beat up or bash the other. Bottom line is this – There's pros and cons to whole life and universal life insurance. Nothing is free. Smoke and mirrors? Hmm…that seems like a hypocritical comment to me. Dan, where is your 45 minute video explaining the negatives and cons of whole life insurance and explaining the pros and positives of UL, IUL and VUL? Oh, let me guess, that doesn't exist, right? I'm a 20 year veteran and third generation in my family to dedicate my career and professional life to the insurance and financial services industry. My father and grandfather taught me to do what's best for the client, always. No exceptions. But they also taught me this — It's not my money. Our job is to give people options and allow them to make an educated and informed decision. Just my 2 cents and I wish you the best!! My stance is this — Permanent life insurance can be one of the greatest and safest places for people to place their hard-earned money. No insurance company is created equal and certainly not all insurance agents or financial advisers are created equal either. ~ Jay

DO NOT TRUST AN INSURANCE COMPANY WITH YOUR INVESTMENTS! INSURANCE AND INVESTMENTS A TWO SEPERATE THINGS!

I totally agree IUL's if they're not properly structured then anyone who purchases them should through it down the drain!

Great video!

"…[IUL] contracts are unlikely to produce long-term returns in excess of bonds…"

Folks, 10y Treasuries now yield a "whopping" 2.2% and investment-grade corporates generally don't yield far north of that. Through most of the years we've tracked bond yields since the beginning of the last century, bond yields have been below 4%, and even as low as under 2%.

Bottom line, we're looking at–ta-daaa!–an IUL long-term annual yield of 2.5–4%. Shocking eh?

Gee. That's way WAY below the 6+% that NAIC's AG49 guideline recommends, and which legions of shyster IUL salstrons and B/Ds have ignored anyway, illustrating their IULs at wild-*ss rates of 7%, 8%, and higher.

These stupidly high illustrations virtually guarantee you will chronically underfund your IUL causing you to LOSE it 20–30 years hence. In a few decades, you LOSE EVERYTHING: your death bennie and the $100,000s you faithfully fed into this diabolical money black hole.

The above comes from CNBC and a well-sourced IUL primer from Valmark Advisers, part of Valmark Financial Group, the links for which I give you here:

http://thebishopcompanyllc.com/wp-content/uploads/pdf/indexed_universal_life.pdf
http://www.cnbc.com/quotes/?symbol=US10Y

Did you say safe investments like "real state, lending and government bongs" Government bonds are paying a negative return, lending is in a huge bubble and housing crashed in 2007/2008.

i also have a aunt who has this IUL, i think she lump sump it, and i cant even tell her that cost of her insurance later on, it just gonnaa piss her so bad

i remember when i was at the WFG, people were very fake. they brainwashed you so bad, i have a friend who has been there for 2 years, didnt make any money after he finish his warm market, and he still stay, god, i should pull him out of that thing. every word came out from their mouth was poison. i feel shameful about myself too, i attempted sell this poison to friends and family, but thankfully, no one buy it hahaa,,,,, i did wasted 500 dollar on this damn thing, good thing is i learned a lesson. My CEO even told the smoker if u could get insured, buy as much you can on the premium, always try to sell IUL because high commission, she must too greedy. insurance company is not RED CROSS organization, they dont do people favor, not saying all policy are bad, but one thing for sure is buy the one that you can easily afford. you are trying to protect your family not gamble with it.

i forgot mention that, WFG also give u some kind of medical pill take it before you do body check, so they cant find out u are a smoker, that is cheating. i believe it illegal

if i post this video to their clients , they will be piss at me!

i like your video, I was in a MLM called the WFG before, those blood sucker try to sell me the Universal life insurance, thank god , i didnt buy it, they make me almost sell this to my relatives. they always use the 20 years average index to predict the future,they told me not to worry about the market, it always goes up and down. the guy who recruited me to this MLM, he bought 1M policy, he is age 25, he paying like almost 500 a month, i honestly think he will fail this policy. this type of policy for people who got extra money can handle the loss. i quit that MLM after i found out they have very bad reputation.

I truly dont know where this guy is getting he #s, fees and cost? Now he got a spot on youtube i waisted 8 minutes i cant gety back now

I agree with everything said about the VUL, but the confusion/deception is when he keeps lumping both the IUL and VUL in the same conversation as if they act and perform the same. That is the "smoke & mirrors" as he says. You need to read the book called The Retirement Miracle by Patrick Kelly where he explains in layman's terms the difference between all these different Insurance products (WL, UL, VUL, IUL, etc.).

Secondly, not all IUL's are the same and as with ANY insurance product, is must be set up/structured correctly in order to perform as advertised and that largely depends on the agent and his/her knowledge and expertise. Not all IUL's have A.R.T.'s within them and to make that assumptive statement is deceptive and wrong. More importantly, it's doing the consumer a disservice. He talks about a WL policy being "well designed" implying that there is a possibly that you can have a poorly designed WL policy. The same is true for an IUL and Term contract and NOT explaining that fact is ignoring the truth.

Thirdly, he is completely disregarding or ignoring the fact that these products are first and foremost insurance and not investment vehicles, therefore your main costs (COI) are for the insurance itself for which you get benefits for having in the first place. There are also "Living benefits" in the IUL and guaranteed tax-free income as well. He is all over the map talking about Term, VUL's & IUL's in the same breath as if they are the same and their are not. He mentions the negative aspects of the VUL and Term insurance implying those are negatives with all three. There is just too much jumping around vs. straight up comparisons of WL compared to each product he is trying to degrade.

Lastly, you can design an IUL with a "fixed interest rate" too but he doesn't say that either. If you are reading this as a consumer, PLEASE DO NOT take this video as gospel and do your own research to see what's right for you. I would suggest you look at UNBIASED 3rd Party resources that are credible as well such as the book The Retirement Miracle by Patrick Kelly. As one in the industry, I would never degrade WL because I do think it's a good product but it's not for everyone (it's mainly for those in your late 60's & 70's that didn't plan two decades earlier and need a safe strategy). BTW – the IUL can do that and more if "well designed" also.

It seems very enlightening. However, you seem to very conveniently ignore the magic of compound interest. Using the rule of 72, The IUL is far ahead of the game, compared to any other vehicle. True, there are fees and costs. Is there a product that doesn't have them? In an IRA and a 401K, compound interest is almost non existent. Being that compound interest only happens on an up market, you never experience it, whereas in an IUL, you can. Because your money never goes below 0%, compound interest is uninterrupted. As for the fees, in an IRA and 401K, fees compound, as your investment grows. According to NerdWallet, the average costs involved in a 401K averages 3%. 3% of what, you ask? 3% of your accumulated wealth. Initially, that amount is insignificant. 3% of $1,000 is $3 for that year. When your investment grows to $100,000, your paying $3,000 for that year. The more your investment grow, the more you pay in fees. By comparison, an IUL's fees average 1% of the premium paid. Being that the premiums are fixed in an IUL, that amount never increases.
As for your solution, I have been in the industry for about 15 years. I have discovered that whole life policies are the best in the market. What makes them great are the guarantees built into them The drawback to that is that, is that you pay dearly for those guarantees. Those guarantees come at a steep price. If you were to pay the same premium you pay into an IUL as you would into a whole life policy, the IUL, even a UL policy would outperform a whole life. You talk about high fees in your video? Whole life policies are the epitome of high fees. I am well aware of how the IUL works. My policy and my clients' have done very well, especially when the market has fallen, my policies have performed way better than the initial illustrations. Why pay more than you have to when you can put that money work for you?

You tried to pull a fast one on your example of ''serial risk" when disqualifying, correctly in my opinion, the deception behind any reported averages in a time series when one of the factors is negative. Like stock markets, bonds, everything money is thrown into to make businesses run. IUL's don't have negatives to average. They project reasonable growth reliably just for that purpose alone. As for all of your other condemnations of cost in IULs no matter what you have to maintain a corridor between death benefit and accumulated cash value to maintain the tax advantaged status of the asset. Compare that cost to what you get with managed money taxed.

I love what you are saying about Universal Life policies, but in all reality whole life is no better. There are still policy fees and costs along with cost of insurance and interest rates comparable to what you'd get on a long term CD. You're better off with a solid level term policy and getting other investments outside of your life insurance.

You clearly don't understand IUL's. Mixing VUL with IUL in your explanation is misleading as they are clearly different. I could go on and on about your inaccuracies in this video but I am not going to waste my time. Plus many others have already pointed them out.

Thank you for telling the truth most people won't know.