In part one of this discussion, we discussed 10 myths about IUL. Now that we’ve dissected those myths, we can get to the truth of why you shouldn’t buy (or sell) indexed universal life insurance. Insurance companies have put many pages in the front of Equity Indexed Universal Life (EIUL) illustrations that describe the issues we’re going to discuss, yet most people (by design) will not take the time to read and understand what these pages are saying. Unfortunately, this is where much of the misinformation stems from. People insist thatRead More
Category: Prosperity Economics
The Whole Truth About Equity Indexed Universal Life Insurance: 10 Myths About IUL
One of the major problems with the agents and the companies that sell EIUL (Equity Indexed Universal Life, which is what it was originally called) or IUL (Indexed Universal Life, which is what the industry is now calling it to avoid SEC scrutiny) is the gross negligence in conveying the risks to the clients. All one has to do is carefully read the full insurance illustration or proposal to find these out. The insurance companies have avoided liability by spelling out the risks in very specific, albeit confusing and overwhelminglyRead More
Is 0% Car Financing Too Good to Be True?
With interest rates at what they are, you may be tempted to take up an offer of a 0% car loan without hesitation. However, it’s important to take all the information into consideration before you make a decision. Not all 0% car loans are actually 0%, and you may find you could have made a better decision in the end. Remember: the interest rate is only a piece of the puzzle. You must also consider how much you’ll be paying each month, and what a lower payment could do forRead More
Understanding Interest Rates: Is 12% Annually the Same as 1% Monthly?
Many people have trouble understanding interest rates and how to calculate them, which can lead to an incorrect interpretation of financial information. Fortunately, TC Financial Calculators can make rate calculations simple. The Financial Calculators in Truth Concepts include Future Value, Present Value, Interest Rate, Payment, and Time Period. You’ll find them in the toolbar by clicking Calculators, then hovering over Financial in the drop-down menu. For this particular example, let’s answer the question: How do you calculate if 12% annually is the same as 1% monthly? Step 1: Grab theRead More
Can You Get Ahead with a Loan Balance?
If you’re at all familiar with whole life insurance strategies, you may think it’s possible to get ahead while carrying a loan balance. We won’t say it’s impossible (especially with the right strategies), however, we would challenge you to think a little bit deeper about the numbers at play. Let’s say your clients are earning about 6% net in an account, and they take a policy loan at 8%. You may, at first, think that it’s obvious that they won’t be able to get ahead. However, there’s a common misconceptionRead More
Proving the Power of Savings in the Maximum Potential Calculator
The Currence App is going to be a game changer for clients and advisors alike. Not only does the app teach people how to save first using a financial “reservoir,” it positions advisors as the go-to when a client has reached their target. That means they’ll look to you to help them make money moves and create even greater protection, liquidity, and cash flow. How Does Currence Work as the Client? When a client enrolls in Currence, they are prompted to establish a new, secure, and interest-bearing bank account. Then,Read More