Indexed universal life

This is from an anonymous listener.

She says, Hey, Jean and AJ, what are the pros and cons of rolling art? a pension or 401k into a solo 401k and then taking out a loan against it or rolling it into an IUL and borrowing from there instead.

I'm trying to figure out which option comes with the lowest taxes and fees, the lowest risk overall, and the best opportunity given my situation.

I'm open to hearing about any other alternatives too.

What do you think? Hmm.

This is one of those situations where I feel like I need more information.

But my initial reaction is the IUL situation.

If you withdraw your 401k from your pension, you can't do a tax-free rollover.

And they are there to reduce the risk overall in your life, whether it's umbrella policies, like you said, car insurance, all these other different policies that are in place, those are there to reduce and mitigate that risk.

But when it comes to looking at your investments, we want to make sure that we are really cautious when we think about you know utilizing insurance as an investment and so that's what we're going to be talking through today and how we're going to dive deeper into this so iul for those of you who don't know it stands for indexed universal life insurance policy and this is going to be a policy that i think for for many folks out there needing to understand we're going to compare the differences between this and something like a simple term policy so you can kind of see what the differences are because in reality it is an insurance policy and so when we think about how iul's work ryan let's dive deeper into kind of some of the thought process of hey what is an iul and how does this actually work it

works very similar to a standard life insurance policy in that you pay premiums to the policy sometimes it's a lump sum sometimes it's monthly sometimes it's semi-annual sometimes it's annual there's a death benefit There's what's called a cash value, what we'll get to in a seconds.

But unlike a lot of other insurance products, it's invested in a portfolio and you get investment credits that add to the cash value over time.

to get a mortgage protection, right, because it's cheap.

I would go over their finances and see if they can afford an IUL, which is an indexed universal life insurance policy.

That is a forever life insurance.

We call it a whole.

We could do that.

We could put $2,500 a month in an IUL for our business to protect us.

Yeah, that's huge.

So that's the thing that I didn't know then, Andrew, and I lost everything.

I don't know, $100,000 in expenses, sometimes less, $75,000, and the rest is profit.

What about chargebacks and cancellations and...

Well, with IUL, my last VP bonus, my persistence, it was at 98%.

Damn.

There's a big tax involved when you take the money out.

But when we include life insurance on it or index universal life to be more specific, guess what? That IRA is not as taxable as it was if you didn't do any insurance on it.

Well, that's just saying, ensuring your IRA, you said it, and if you're not doing that, then pick up the phone and schedule a time to meet with us, 833.

Maggie tax ensure your IRA.

They want to know more about indexed universal life and how it works.

So,

good question there, because one thing we talked about before, converting your IRA into a tax-free account using Index Universal Life.

And again, these are questions that we get, but when you come in, we can explain it to you and illustrate it to you.

And we were just I would say at that time we had just just brought on national life.

But Emeritus was would you agree it's that was kind of our primary IUL carrier at that time?

It was at that time.

It was, you know, we had, you know, very, very strong product, good comp at the time.

Thank you.

So switching over guys, just to the life products, I'm going to go through some of this and I'm not going to touch on every single product, but I just want you all to know what's available at Emeritus.

So across the board, you see we have IULs, we have whole life, term insurance.

I highlighted the top seller of each product in green, just so you're familiar with it.