Dave Ramsey vs. Indexed Universal Life: 5 Claims Debunked
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- čas přidán 13. 07. 2024
- Dave Ramsey discussed 5 reasons why you should avoid indexed universal life insurance. Is he right? I'm going to debunk each of his claims one by one.
0:00 Intro
0:22 Claim 1: Poor IUL investments
3:41 Claim 2: High fees in IULs
7:45 Claim 3: Loss of benefits
9:30 Claim 4: Never beating inflation
12:33 Claim 5: Unaffordable rising premiums
15:25 Learning more about IULs
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The truth about indexed universal life… it underperforms standard index investing and has way higher fees. A waste of money
Of course it does. It’s not designed to compete with it any more than bonds are designed to do so.
Great video
Thanks!
Excellent video my friend!!! There is no such thing as a "bad product" - they do exactly what they are intended to do. There are only bad executions of products, i.e. underfunding an IUL, etc... There is no doubt that a properly-funded IUL can be a great retirement supplement. I love term insurance, and I think nearly everyone should have millions of it. And secondly, a properly-funded IUL. The key is "properly-funded". The goal of IUL is to pay less COI than you would in taxes, and the best way to do that is max-funding... And time... Keep up the great work! - LP
Thanks Len. Couldn’t agree more.
Nothing some good word-salad with some flim-flam dressing
Super on point content, David. Dave also promotes-sponsors term insurance so hating cash value is really just product promotion by disparaging the comp.
I agree.
Thank you for this detailed information, David! God bless you and your family.
Thank you Joann!
Well done David/Dave!!
Thanks!
Dave does not intentionally mislead people. He shares whatever based on whatever he can grasp. Any math other than 2+2 is not Dave's forte.
Very well explained. Thank you David
You’re welcome!
You’re welcome!
Incredible video David. I have ready your book twice. On my third round. And I can't tell you how happy I am to see you putting out CORRECT information. D.R. is hurting people and it's so unethical. Thank you for being an advocate and teacher of the TRUTH!
Thank you!
Ramsey helps more people with one call than you have so far in your life. Does being born without a brain run in your family?
Great video! Well done!
Thanks Nate!
Dave, excellent video with factual content!
Thank you!
This guy is a Good SALESPERSON - Put a policy on the screen and break the WORDS in CONTRACT down. NOt factual content. THE FACTUAL CONTENT is in policy #3 was such a twist on words. I would love to sit at a table with a REAL policy and open it up and go over it 1 on 1 with this guy. IGNORE the words and read the policy. 1 Die lose Savings 2. Sectiion 7702 C IRS code comes in play 3. BORRW your money. No such thing as tax free loan. Tax free MEANS NEVER.
Tax free and cost free loans. Loan is paid back by death benefit at death. Yes, truly tax free.
Great video David, though specific to item #4, there is a way that an IUL can provide better returns than the stock market. Maximum Premium Indexing utilizes secure leverage to increase the cash value of the IUL policy and thus increases the returns provided by the indexed options. Essentially, you borrow against the cash value, and simply reinvest that sum back into the policy. You have increased leverage and although you pay interest on the loan, you keep the arbitrage between the loan interest and that earned on the additional indexed options. You compound the growth inside the policy while maintaining the security. If you are not familiar with the strategy, please reach out and we can discuss.
Yes I’m very familiar with this concept.
@@DavidMcKnight I am interested in your thoughts about it, and whether you have considered speaking about it on your channel. If you are open to it, I'd love an opportunity to speak with you about MPI. Please let me know the best way to reach out.
@@ftmfinancialllc it’s not really our sweet spot so I’ve chosen not to focus on it.
@@DavidMcKnight understood, thank you for your prompt responses David
@@ftmfinancialllc No problem!
do you believe it’s a good carrier to sell iul’s
Sorry, can you rephrase your question?
finally a video to debunk DR. It's amazing that he talks so much trash on them yet you see him advertising himself on Facebook all the time trying to grow his insurance business...Hypocrite
"Better than I deserve"
Right!
Is there anyone excited about IULs who isn't selling it or stuck in it?
Now there’s a loaded question 😀
Read your book; enjoyed it. Just can’t pull the trigger on these.
@@kf589 Did you read Look Before You LIRP?
No sir. Power of zero.
I don’t pay anywhere near 1 percent fees.
Great! Hopefully it’s closer to half a percent or lower.
Can’t stand Dave Ramsey, almost as much as I can’t stand IUL… risk cloaked in a “protective” product
Whole Life?
@@DavidMcKnight pristine capital rather than that IUL slop. Two decades of track record - what could POSSIBLY go wrong? Future risk to the owner couldn’t be the reason the commissions are so substantial by comparison? Nah, sleep well at night… avert your eyes to the future policy cave ins when retirees can least afford it - they will have been better off with the “buy term and invest the difference” lie.
@@dontfighttheriptide4091 why are you assuming they’ll cave in? Are you referring to specific data showing they’ve caved in in the past? Or, are you conflating bad agents with bad products? Max funded, these products have survived all sorts of Monte Carlo studies, particularly with strong companies. Going to need more than just blind assertions here.
@@DavidMcKnight Data? Less than two decades worth of data doesn’t accomplish much of anything, unless you want to talk about other universal flashes in the pan that have come and gone. Certainty of contractual rights and two centuries of data however does provide confidence… and a “good” agent vs a bad agent does not change the fact of the underlying growth in cost of insurance in IUL - as an owner has less and less opportunity to pivot, that uncertainty grows. If the owner has the audacity to use their accumulated funds (opportunity or retirement) and experiences a bear market (something not seen during the life cycle of UIL), we’ll see the results of the maybes you are setting them on the path of experiencing.
Oh, and at 80-90% commission, do you believe that “good” agents are all that are being drawn into this debacle? At those commission rates, there are too many bad actors in the TikTok generation incentivized to slap a LIRP label on whatever they can sell. At least a bad whole life policy has future options… reduced paid-up and put in on the shelf while remaining in-force and no tax implication - NOT so with IUL. I understand that you can not take responsibility for bad actors, but this s#!t will be a retirement nightmare and yet another very bad mark for insurance in general.
Universal life is such a scam😂😂😂😂
Don’t conflate scammy agents with scammy products.
excellent video
I disagree with DR (dave)on everything, but I also don't buy into the IUL so much, I agree IUL is better than 401k but riskier than WL, and has some risks not mentioned by DR or David
1. when looking at fees, I agree that in most cases fees will go down in IUL but not all times, if we have multiple years of down markets, than the gap between cash value and the death benefit (+loan) can grow or not shrink fast enough, in that cases when you get older the fees will get higher (the plan is to shrink it before you get too old, / get too expensive, but if the market not doing well enough years the plan will fail)
2. commission/fees I Agree with David
3. canceling - I agree with David, not sure what Dave is even talking about, im sure he understands it, but trying to mislead everyone so they buy their own term insurance
4. return interest - Dave just not telling the truth, but not sure I agree that IUL is as safe as your saving account, its a bit riskier, but of course, give you much more. (see '1')
5. market risks - again Dave just not telling the truth, I agree with David
There are some risks that are missing here, like for example, you need to know that the insurance company can change things like cap, very annoying (and what I said in '1'), remember DB + LOANS (be careful with loans) - cash value = is the amount you will pay fees on, make sure its low as you get older
Thanks for your comment Nir. Stay tuned for coming videos that will respond to much of what you said above. Stay well!
The mind boggles on how people can be so idiotic
Are you aware that in down markets, the IUL has a fixed account (like the Whole Life) that the client can transfer their money to? The rates are also as competitive as an ordinary Whole Life. Many people have opinions on the IUL because the understand it through books and videos like this but they don't KNOW the IUL because the never own it, sold it or at least if they sold it, haven't been selling it long enough to KNOW it. My clients average 8% over the past 7 years. My clients who have had if for 11 years plus, their COI has dropped especially when it was properly structured from the get go. I don't just understand the IUL, iIKNOW it.
@@excelsiorleadershipdevelop9762 of course i do, read my reply, i specifically said that the reason to lose money is fees only and fees can get large, and i explained in what scenario
@@excelsiorleadershipdevelop9762 yes I’m aware. How do you know if the market is going down though? Seems this strategy would help if you knew the market was going down ahead of time.
🤔 it seems obvious to me that it is just a math exercise. Trading tax cost for insurance cost. If in high tax bracket, it is a good trade.🧮
The higher your marginal tax bracket the better the outcome!