Here’s a quote from a trusted associate, regarding a product that lots of agent-advisors are herding their clients into –
so-called market-based universal life, equity-indexed universal life and variable universal life insurance:
” Our trust department at the bank was full of underfunded policies that were BLOWING-UP.
The bank was afraid of the audits because clients banked there and the agents too. They were more afraid of losing the deposits
than the trust clients experiencing the devastating results of the death benefits not being in-force. I’ve heard the CEO say….
We will just blame it on the – – – – insurance companies.
There was one client, in particular, who prepaid $200,000 in a UL policy to carry a $1.5 million trust policy to age 100 at 7% current.
He eventually got a letter from the trust company which was from the insurance company stating he needed to start paying $1,700 per month
just to cover the mortality costs for the next 12 months with a catch-up drop-in of $38,000; then, if he was living, the cost would increase each a
nd every year afterwards.
The problem was he was uninsurable; couldn’t rewrite the contract and his actual liquidity had been decimated by other bad investments including WorldCom.
I’m also reminded of when I was with Equitable of NY and they convinced us to roll the whole life products we wrote to their new super duper ELA product;
similar to Principal’s adjustable life contract marketed as “Whole Life at Half the Price”. Well, we all know what happened.
When nothing is guaranteed, it should be cheap “on paper”. We know in the long run “cheap” is the most expensive.”
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If it sounds too good to be true….
If you’re following the “herd” (which is what I affectionately label “the majority”) then you need to think again.
Has what you’ve been doing from a financial standpoint for the last ten, twenty, thirty years actually worked?
A million bankrupt Americans annually since 2000 CAN’T be right.
A million financial planners who don’t understand how money really works?
That can’t be a good thing.
Call or write us. We’ll share the Answer.
“I contend that for a nation to try to tax itself into prosperity is like a man standing inside a bucket
and trying to lift himself up by the handle.” —Winston Churchill
