IUL and Term Life. One possible advantage of IUL is that the term life insurance and investment can be put together, and then the investment part can be covered by the insurance product, without the need to pay taxes on the income part; and then when you are old If you need money, you can also borrow money from it, and you don’t have to pay back the borrowed money, which is equivalent to taking a pension. Therefore, this product is to buy life insurance, and there is no tax on the part of the investment income.

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1. It is certainly not reliable to expect others to make a fortune for you. Buying mutual fund, stock, bond, and house by yourself is the right way.

2. Don't buy things you don't need (insurance). Not everyone needs insurance.

​ 3. Cost of Insurance. The more precise and complex the product, the higher the cost.

4. Learn to understand the cost from the perspective of the insurance company. The cash value in the IUL is deducted by the insured company using Cost of Insurance in a reasonable and legal way. The larger the denomination of the insurance you buy, the higher the deduction, and it will get higher and higher as the age grows. In the first few years, I couldn't feel it, and the problem became more and more obvious in the future. This is the "implosion" phenomenon of underfunded IUL, which usually occurs around the age of 60 or 70. There are ways to resolve it, that is, don't buy a large amount of insurance from the beginning. Use the largest investment to buy the smallest amount of insurance, this is the design that IUL should have. How does it work? The key point is to let the cash value catch up with the death benefit quickly, because the cash value is your self-insured, and the risk that the insurance company takes is only the delta of DB-CV. As long as the delta decreases every year, even if the age is getting older, the cost of insurance can be controlled to be almost the same, rather than multiplying. Go to Google Max-funded IUL to see how people who really know how to play buy IUL.

5. Due to the existence of expenses and life insurance premiums, this product actually mainly invests in the bond market, and the income will definitely not outperform the market. In the first few years, the investment is not as good as the expenses, and the principal will actually lose.

6. Life insurance premiums, whether you buy the term alone or through this insurance, are all at the same price. Passing this product is more expensive because there are costs. Life insurance premiums have increased exponentially. So if the product principal is not enough, it will collapse.

7. Even if you are very smart, fully understand this product, carefully bypass various traps, achieve the purpose of less exploitation, and enjoy tax-free loan. But the insurance company reserves the right to change the terms. So in fact, if you play against an insurance company that integrates athletes and referees, you have a high probability of losing.

8. Insurance is a very complicated gambling contract. It is a kind of gambling. And it's a serial gambling. As an insured person, there is a greater chance of losing to the dealer in the casino.

9. The largest investment is to buy the smallest amount of insurance. This is a positive solution to IUL. IUL is not applicable to everyone, it is essentially a kind of investment, and life insurance is only for tax benefits. The ideal situation is that you guarantee 500,000, but the cash value increases to 1 million or 2 million through max funded or early investment income. In this way, your investment income can cover all life insurance expenses first after you get older, and secondly, you don't have to pay tax when you take it out. If your money can't be maxfunded, there is still a great chance that the late income will not cover the cost and cause a lapse. Another serious problem is that insurance companies have the right to modify the terms. In recent years, the trend has been that insurance companies have drastically reduced the cap, resulting in a serious decline in revenue. It has become more difficult to exceed DB as soon as possible through existing investment appreciation.

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----Source mitbbs.com discussion area

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