- Hey everybody, I'm Rebecca Gordon,
this is Randy Pierson
and welcome to another edition
of Selling Life and Annuities with Gordon Marketing.
What are we doin' today, Randy?
- Thanks, Rebecca.
Today we're gonna talk about eight reasons to use,
IUL: Index Universal Life
to save for retirement.
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Levon, why would somebody
wanna use IUL to save for retirement?
- Well Randy, as you know,
IUL is the top-selling insurance product
in the industry right now.
The sales are just exploding.
And I think it's this combination
of an ability for a person to save for retirement
without necessarily taking a bunch of risk,
and cover a lot of the what ifs that could happen
while they're in retirement.
- What I hear from consumers,
or at least agents are telling me they hear from consumers,
are the question, "Are IULs a safe vehicle?"
- Absolutely.
You have zero possibility of a negative return
when you own an Index Universal Life policy.
That is unlike a lot of the things
that folks have invested in the past
that we all can remember;
2008 there was this incredible market volatility.
You can save in an insurance policy
without taking any risk of losing money
due to the performance of the investment.
- How much do you need to start an IUL?
- That varies.
It really is tied to how much insurance you're purchasing.
But if you're really building a policy
to help save for retirement,
we're gonna wanna obtain just enough insurance
to maintain all the tax benefits
that come along with the use
of the cash value down the road.
So the premium to start a policy
could be as low as $50.00 a month, for example.
It could be unlimited on the top end.
So it gives folks a wide range
of abilities to fund it with their retirement.
- I know I've heard the term bantered about,
Maximum Efficiency IUL.
I mean, how does that work
or what does that mean?
- Again, we're wanting to take advantage
of the tax benefits that the IRS has allowed
for life insurance,
but we only wanna purchase
the amount of insurance necessary for us to get there.
So a Maximum Efficiency Contract
is funded with the most premium
that can be placed in that contract,
based on the face amount every year,
and if we do that and allow
a little bit of room for growth as we go along,
you're gonna experience some pretty healthy returns
over the period of time that you owe it,
and you're gonna be able
to get that money out again 100% tax free,
as long as we structure that thing correctly.
- Are there some carriers that you like working with
for this product line?
- Absolutely.
We are, at Gordon Marketing,
a company that represents several carriers,
so while there's several options,
we consistently find a few of the companies
to be really exceptional in their field.
Coming to mind,
I would mention companies like:
North American, Alliance,
National Life Group,
all have fantastic products
and work really well in this space.
- As the name applies,
this is an indexed product
and I heard you mention that term more than once.
Within an IUL,
and especially for some of the people
that are of ages that are viewing our show right now,
how does that indexing work?
- Wow, interesting,
very good question.
First of all I'll say that the carrier is the one
that is really bearing the investment risk here.
The client doesn't have to worry
about making a bad decision.
The carrier can manage this risk effectively for the client.
The use of options and bonds,
plus some interest credits from the carrier,
all these things combine to create--
- So who's your ideal client?
I'm thinking it's somebody
who is a planner, right?
'Cause it's based around retirement,
so it's gonna be somebody who's disciplined to think about
and investing for their future.
Is that right?
- Yeah, a person that has an income.
And a person that cares about that income
and protecting it and saving it
that may be looking for some other ways
that they can save outside of retirement--
- IRA's-- - And IRA's, that's right.
- I mean I'll just do my own little plug or testimonial.
Randy approached my husband and I
about an IUL several years ago because we,
we have our IRA's
and we max those out every year,
but we wanted another vehicle.
What else could we be doing
while we're at the peak of our earnings,
our earning careers.
And it's performed beautifully for us.
But that's just it.
We'd always had investments,
but this was another thing
that as soon as you mentioned that to Darren,
his eyes were like--
- So Levon--
- Another one?
- When somebody,
when a consumer is thinking about saving for retirement
they're most often thinking,
as Rebecca said, an IRA or 401k.
What are some of the advantages of utilizing an IUL
or in this case,
a life insurance policy,
versus one of those savings tools?
- I think the biggest advantage here is,
the plan can provide funds
if the person doesn't live to retirement, number one.
So if the person passes away,
that death benefit creates that lump sum amount
to make sure the retirement
is still able to be enjoyed by the survivors.
But more importantly,
it's when you put money into a tax deferred vehicle,
most folks don't really understand
that what's happening there
is you're postponing a tax into the future.
With an insurance policy,
we're able to receive money out of that policy
without having to pay taxes when we take it out,
which is the opposite of what happens
with things like 401k's and IRA's.
- And there's some ancillary benefits too, right?
With most the products that we offer today
there's some extra bells and whistles
that a client's not gonna be able to get
in say for example, a 401k like...
- Yeah, this is one of my favorite things
about life insurance.
Now we can take advantage of the death benefit,
not only if we pass away,
but if we become sick,
unable to work.
A person that might have a chronic illness,
maybe they have a slip and fall,
or break their hip, or Alzheimer's,
we're gonna be able to use that policy's death benefit,
not the cash value,
but the death benefit,
before they pass away.
- Actually use that money when they need it the most?
- Absolutely.
- Well hey, we are at the end of this segment,
but if an agent is watching this right now
and this is startin' to resonate like,
"This is my time to get into this market,"
or, "I have a lot of questions."
What do we want them to do?
- Hey, in the Comments Section,
just hit me up.
Request a copy,
I've got some great tools for ya.
Some excellent marketing tools
that you can use effectively with clients
to show them the reasons why
they ought to consider it.
- Yeah, I was just gonna say,
this is our new show.
Once again, Selling Life and Annuities.
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- See ya then. - Thanks guys.
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