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URL:  http://boards.fool.com/brandonisme-quotthanks-for-the-responses-so-30610058.aspx

Subject:  Re: 7702 Private Plans (indexed universal life) Date:  3/27/2013  7:16 PM
Author:  JAFO31 Number:  71519 of 75812

Brandonisme: "Thanks for the responses so far.. interesting reading the different opinions. I'd say I'm reading better arguments from the pro than the con side at the moment. Has anyone heard of these things going sour? The people that are against this aren't really making "specific arguments why this is bad, more just overall statements like; if they are getting commission they are screwing you and if the contract is really long it must be a scam. I am actually hearing more logical arguments why this may not be all that bad of a way to go."

Pay attention to RayVT.

Do you need life insurance? Have you maxed out other tax advantaged investment/retirement account choices? Are you prepared to overfund the policy without becoming a Modifeid Endowment Contract? Do you intend to the life insurance in force for your entire life?


"I think another reason high commission is supposed to be justified, is because with something like this you sign up once and that's where your money goes. When you are investing in individual funds / stocks, there's so much money handling going on the commission can be smaller because the brokers continually get commission as money is moved around... correct me if I'm wrong.."

More money for less work? Sales people must love you. Or is there any chance that you are an insurance salesperson? I trust not, but you are new and your only posts are about IUL policies.

See also:

http://helpdesk.blogs.money.cnn.com/2012/07/09/indexed-unive...

http://www.slideshare.net/AlDeRemigis/indexed-universal-life... (from someone interested in selling IUL policies, but still a decent basic explanation)

http://www.producersweb.com/r/IIG/d/contentFocus/?pcID=d1c6f...

"They are merely facts that buyers should keep in mind and seriously consider before committing their hard-earned dollars to this retirement savings strategy.
1. Buying index universal life is a long-term commitment. . . .
2. The requirement to pay mortality charges. . . .
3. The ability of the carrier to change mortality charges. . . .
4. Possible bond-like returns over time. . . .
5. The ability of the carrier to change some element of the interest crediting formula. The carrier does this simply because it is unaffordable for the carrier to provide a strong long-term guarantee on the index-related interest crediting formula. . . .
6. Illustrations are unreliable. . . .
7. Management changes at the carrier can result in bad treatment. . . .
8. Contract lapse can create a tax disaster. . . .

However, a truly informed customer should enter an index universal life contract with full knowledge of these eight cautionary items. For the reasons stated above, it makes sense to diversify across a variety of retirement savings strategies, and not to rely upon index universal life as your sole retirement strategy."

Id.

Regards, JAFO

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