@Ron Sneller FSCP®, RICP®, RFC® The big debate in the
#lifeinsurance world is IUL vs whole life insurance. If you're in the market for
#cashvaluelifeinsurance which one should you get? It really depends on what the client wants! You'll notice many "finance influencers" are in camps. Always whole life or always IUL. I don't take that approach. The main difference between the two is that whole life has more guarantees. They have a guaranteed growth rate and a very stable dividend that typically pays out every single year. Many dividend paying companies have paid their dividends out for over 160 years! Pretty comforting. Now the trade off is that there's less upside potential. The growth on your
#money in a whole life policy will be closer to 4% or 5%. The
#indexeduniversallife (IUL) has more upside potential because the returns track a market index like the S&P 500. Your money isn't actually in the index so if there's a recession or bear market, you won't lose any money in the IUL; you just won't make anything. Because of the higher upside, your average yield over the years is closer to 6% or 7% in the IUL. Personally, I prefer the IUL, but have plenty of clients who love their whole life plan. if you're in the market for cash value life insurance, comment "money" below and I'll point you in the right direction!
#financialliteracy #compoundinterest #taxfreeretirement #wealthymindset #beyourownbank #cashflow