We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (22,107)
  • Industry Conferences (2)
  • Industry Job Openings (3)
  • Moore on the Market (495)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (828)
  • Wink's Articles (377)
  • Wink's Inside Story (284)
  • Wink's Press Releases (129)
  • Blog Archives

  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • What’s so great about IUL?

    November 23, 2015 by Tom Martin

    As an avid woodworker, I have a tool collection that would be the envy of Bob Villa. My workshop contains some very highly specialized tools accurate to 1/100th of an inch. This kind of precision is necessary for things like cutting dovetail joints, but not everything I do requires that kind of rigor. Some of my favorite tools are consumer-oriented devices that have multiple applications. Often times, these multi-taskers are the ones I reach for.

    Critics of permanent insurance may argue that insurance is not a good investment, that term is a cheaper way to provide death benefit, that surrender charges are too long, that product design is too complicated, and so on. While I disagree with most of those statements, I am willing to concede on all of them for the purpose of this article and stand by permanent insurance (especially IUL) solely on the grounds that it is the best multi-tasker in the tool box.

    There simply is no other financial product that can protect against life’s uncertainties better than IUL. Let’s consider all that it can do:

    Death Benefit: While term may be a cheaper way to protect against premature death, by definition most people don’t die prematurely. Permanent life insurance is the only effective way to provide death benefit over both the short term and the long term.

    Longevity: The opposite of dying too soon is living too long and both are equally risky. Permanent life insurance can mitigate the risk of outliving assets by providing an income stream via loans/withdrawals or by selling the policy as a life settlement.

    Disability: Not only can the account values be accessed to replace lost income due to disability, certain riders are available that can continue making the premium payments while the insured is disabled.

    Long Term Care: Many of today’s policies will advance a portion of the death benefit to cover long-term care needs. Even if this rider is not available or not exercised, the death benefit can be used to repay the children if the children become responsible for their parent’s care.

    Protection Against Market Volatility: This is where IUL really shines. Since indexed products do not lose value as a result of market downturns, it can provide an enormous cushion against volatility. The 38 percent market drop in 2008 represented an enormous buying opportunity. If all your money were in stocks you would not be able to take advantage of that buying opportunity. Since most of my money was in indexed products in 2008, I had the dry powder to capitalize on the market conditions and posted a significant gain for the year. My retired clients were able to use their IUL policies to supplement their income rather than being forced to sell their securities in a down market.

    Protection Against Tax Rate Changes: Every few years we experience major changes in our tax laws. Since life insurance values can be accessed income tax free, it becomes an ideal income vehicle for high tax years. It can also be used as a supplemental income vehicle to prevent one from creeping into higher marginal brackets.

    Access to Credit: Policy loans commonly have fixed interest rates between 5 percent and 6 percent. In today’s interest rate environment, that may not seem low. But remember the 80s when mortgage rates were in the mid-teens? An IUL policy with a low fixed interest rate will most likely be the most advantageous line of credit available. There are no restrictions on the use of loan proceeds, no need to qualify and repayment terms are vastly more flexible than bank loans. And, if the loan is participating, your policy values will not be affected once the principal and interest is repaid.

    Student Loan/Financial Aid Eligibility: Life insurance cash values need not be disclosed on FAFSA forms. This can greatly enhance a student’s ability to get favorable student loans and financial aid. And with IUL’s protection against market downturns, it is an ideal vehicle to store money earmarked for college especially as the student nears college age.

    Social Security Protection: When one spouse dies the other will experience a drop in Social Security benefits anywhere from 33 percent -50 percent. The tax-free death benefit of a life insurance policy can replace the lost Social Security benefit and tax-free distributions from the policy while the insured is alive and can be used to reduce the amount of social security benefit that is subject to income tax.

    Creditor Protection: Accidents happen and nobody is exempt from lawsuits. Most states provide generous exemptions on life insurance cash values from the claims of creditors.

    While IUL may not be the very best vehicle in each of the above categories, it does a respectable job in all of them. Even if you believe that cash value in a life insurance policy is an inferior investment, can you name any other product that achieves all the above results?

     

    Originally Posted at Producers Web on November 19, 2015 by Tom Martin.

    Categories: Industry Articles
    currency