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(Presentations in this blog were created using the InsMark Illustration System and Wealthy and Wise®.)
Blog #113 is a continuation of my recent evaluations of Indexed Universal Life (“IUL”) vs. qualified plans in Blogs #110, #111, and #112. Don Prehn and Steve Savant, both consultants to InsMark, have created a very interesting video that examines another aspect of this issue in two segments -- each five minutes long. Normally, I would present them in successive blogs, but the information flows better if viewed together. Unfortunately, the video is a little jerky in places -- perhaps due to a poor internet connection when I viewed it. If it’s a flaw in the video, we’ll re-shoot it and re-insert it in this Blog, but for now, the message is important enough that I don’t want you to delay seeing it.
If you take advantage of the concepts discussed, you will never run out of prospects. That’s a promise!
Click on the image below to begin the video.
If you would like to review more details of the material presented in the video (including illustrations and graphics), please go to:
Blog #61 ? Sacrificing Cash Flow with a 401(k) Plan
Blog #68 ? A Pretend 401(k) Plan vs. Indexed Universal Life
Note: IUL is illustrated at 7.50% in the video and both Blogs.
Revised Illustrations at 6.85%
Blogs #61 and #68 were released prior to the new regulations affecting the illustrated rate for IUL (just illustrations are affected; not actual policy performance). These regulations have little noticeable effect on IUL presentations which will clearly disappoint certain mutual life insurance companies who lobbied extensively for them due to IUL’s challenge to whole life.
Click here to review a revision to the illustrations for Blog #61 (Joe Tanner, age 35) where a 6.85% interest assumption is used.
Click here to review a revision to the illustrations for Blog #68 (David Wolfe, age 45) where a 6.85% interest assumption is used.
Conclusion
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IUL continues to provide superb tax-advantaged cash accumulation and retirement benefits. In addition to dominating the tax deductible retirement plan (“TDRP”) described in the video and the two related Blogs, IUL has four additional advantages over the TDRP:
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Note: Along similar lines, Blog #106 compares IUL to a large profit sharing plan covering just the owner of a 30-person LLC (this would also apply to an LLP, an S corporation, or a C corporation).
InsMark’s Digital Workbook Files
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Digital Workbook Files For This Blog
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Note: If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System. Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed. |
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Important Note #1: The hypothetical life insurance illustrations associated with this Blog assumes the nonguaranteed values shown continue in all years. This is not likely, and actual results may be more or less favorable. Actual illustrations are not valid unless accompanied by a basic illustration from the issuing life insurance company.
Important Note #2: Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner. Click here to read Blog #51: Avoiding the Tax Bomb in Life Insurance.
Important Note #3: The information in this Blog is for educational purposes only. In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.