What is an IUL you may ask? One of the latest inventions of the insurance industry. It stands for Indexed Universal Life. A policy which can be dangerously misrepresented. I have disdained this product since it came out, no matter how many slick presentation schemes that brokerages come up with to recruit me to sell this monster. Having said that, I wasn't surprised recently when a well known social media guru told me they lost $15,000 in a policy and got out of it.
Let's tackle a rough subject. HEALTH INSURANCE. With Obamacare imploding, even wealthy people are choosing not to pay the outrageous premiums. Notice how the media completely ignores what everyone was promised when the Demonics forced the grand bill into law. Because of this, the old fashioned "Indemnity" plans are coming back.
We insurance agents get preyed upon by every insurance marketing organization known to man. All of them wanting new agents to move their products with the zeal of a traveling evangelist. This is great because this is America and competition makes everything better right? Right.
Agent Randy E. Hoffman(08/11/2016) CADOI#0H51968
NO! Very good question because many people are worried about how they would handle a huge sum of money all at once. Beneficiaries can choose to settle with the insurer in a number of ways aside from the obvious and common method of a lump sum payment. These optional modes of settlement include the following:
By Agent Randy E. Hoffman (08/07/2016) CADOI#0H51968
The federal estate tax is 40% on anything above $5.45 million of assets. If the PRINCE estate was worth $300 million, the rough estimate is $120 million tax bill to the feds. The state of Minnesota estate tax is around 13% so the PRINCE estate at his death owes roughly $150 million in taxes which are collected 9 months after death by the IRS. Now, the absurdity is PRINCE not only DID NOT have a will but no TRUSTS. TRUSTS protect against not only taxation but specify who gets what at the death of the deceased’s assets.
A SPECIAL TRUST for life insurance is called the (ILIT) – IRREVOCABLE LIFE INSURANCE TRUST. This is a method to place a life insurance policy inside a trust to protect it from taxation for the express purpose of paying the estate taxes due at death WITHOUT USING THE DECEASED’S ASSETS thereby keeping the wealth in the family.
So, if the PRINCE financial Advisors would have done their job, PRINCE would have owned a $150 million life insurance policy that would have been placed in an (ILIT). He could have easily financed the premiums for the policy with his residual income that his assets were creating.
The reward? ALL of his hard earned wealth would have not been touched and stayed in his beneficiary’s control. In addition to the above estate taxes due, his estate also loses money from the inevitable probate costs that the court will charge to decide who gets what. Attorney fees will joyfully eat up millions. Again, ALL OF THIS COULD HAVE BEEN PREVENTED BY PROPER PLANNING. (Always get credible legal advice from a respected attorney).
By Agent Randy E. Hoffman(08/16/2016) Cadoi#0H51968
PURCHASE NOW gets you lower premium,pay less $ over life of policy,insurable now with good health,preferred rates now,assets protected,estate and love gift maximized,enjoy emotional and mental well-being.
PURCHASE LATER gets you much higher premium, pay more $ over life of policy,risk of worse health(rating increase),risk of becoming uninusurable which means (no policy available),assets unprotected,family in unnecessary probate court,the stress and knowledge of failure of responsibility
By Randy E. Hoffman 05/29/2016
Well here it is, Memorial weekend and I’m in the mood to write on that subject I hold oh so dear, LIFE INSURANCE. Since I know you’re on the edge of your seat, let’s continue. One thing I must admit, our industry has been far behind others in general as far as adapting to the quick unrelenting pace of high-tech changes.
I even had a retired geek friend warn me of the day that robots will simply replace us agents as the gateway to getting a new policy. Perish the thought. Some things ALWAYS will require human interaction, Life insurance is one of them. Although 80% of life insurance buyers begin their search online, only 15% actually complete an application there. WHY? When discussing a subject so personal and confidential, people still need people. I’m not saying that robots won’t be available someday to purchase a life policy, I’m saying I believe that it will be a small segment of the industry. Why would people buy from a robot or online without an agent anyway? The rates aren’t any different and who do your beneficiaries call when the worst happens?
Having said that, the industry is neanderthal in using technology to not only making things easier for the client, but also the agent. Do people really want a mobile app to apply for life insurance? Maybe so…. but with a twist. The twist is after being coached by a good agent on options available the applicant could apply on their mobile device should they so choose.
Another thing about shopping online without an agent is that quotes are just quotes, the robot or website cannot do a good job of assessing the possible risk category that the potential client may fall into as they go through the underwriting process. With a good agent you will get a far more realistic price structure based on age and your current health status than a robot or website just throwing out numbers.
The industry must do a better job of speeding up the underwriting process and assisting the agent at explaining the options available to the client and that is why they need to create online and mobile systems for the agent NOW !!! I wonder what they will call the Robot that ultimately replaces me.
by Agent Randy E.Hoffman 05/23/2016
A WARNING and Commentary:
Last week one of the most powerful life insurers in the world pulled one of their products in their Permanent Life Insurance Family. They cited the adverse interest rate environment that would make it difficult for new policyholders to benefit long term. I applaud their integrity and credibility for doing this.
1. Buys time: Allows loved ones to focus on their grief by helping to pay for the funeral and other costs.
2. Provides a fresh start: Lets loved ones start with a clean slate by helping to pay off credit card bills, outstanding loans and even the mortgage.
3. Generates income: Helps replace lost income for years to come so that surviving family members can continue to pay for life’s necessities.
4. Offers flexibility: Gives a surviving spouse the chance to take time off or to switch to a job that offers a more flexible work schedule.
5. Creates opportunities: Can provide funding to start a business, or pay for schooling so surviving family members can train for a new career.
6. Funds the future: Offers a way to fund longer-range goals like a college education for the kids or a secure retirement for a surviving spouse.
7. Leaves a legacy: Gives parents the chance to leave future generations with the legacy of long term financial security.
Agent Randy E. Hoffman – Life Insurance Design SpecialistCA(760)492-1423 # DOI0H51968
Buy Term Term Term !!! Avoid losing control !!!
I beg, plead, pray and constantly preach ” BUY TERM ” !!! DO NOT let the insurance company control the numbers, and then I see stuff like this. Unless there is no other choice, run from Whole, any type of Universal or so called “Permanent plans “. They are sold for the insurer’s benefit, NEVER YOURS !!!