Who Has the Best Paying Whole Life Policy for Bank on Yourself ?

[Cash]

really hard to find good companies that pay. maybe GI

What do you mean by that?

 

[EAJoe]

Ohio National and Mass Mutual are both great for this, Ohio National may get a slight edge due to their lower cost of insurance. Both carriers have great dividend rates and flexible policy choices.

 

[pfg1]

If you understand the concept, really its not about ROR inside the policy at all.

 

[Family Man First]

Not sure if you're appointed with them but F&G Life has one of the lowest fees/charges for one of their IUL products.

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F&G Life - Elite is the product that I forgot to add into the original comment

Not sure if you're appointed with them but F&G Life has one of the lowest fees/charges for one of their IUL products.

 

[Larry Tew]

Not sure if you're appointed with them but F&G Life has one of the lowest fees/charges for one of their IUL products.

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F&G Life - Elite is the product that I forgot to add into the original comment

Sure... and their B++ Best's rating makes them a no-brainer - assuming you care about unimportant stuff like that.

 

[Cash]

Sure... and their B++ Best's rating makes them a no-brainer - assuming you care about unimportant stuff like that.

I just ran across a study that showed the ratings of a company by the big rating agencies has nothing to do with policy performance. But rather profit rate and lapse rate matter far more.

 

[DHK]

You can find some really "great" deals with B-rated companies... but will your E&O approve? And there's always asking "what if... they go under?"

Most E&O will cover policies that have a minimum A- rating. Anything below that, well, you're SOL.

If I want a death benefit to be paid out, I'd better have a financially strong company.

 

[critter]

Not sure if you're appointed with them but F&G Life has one of the lowest fees/charges for one of their IUL products. ---------- F&G Life - Elite is the product that I forgot to add into the original comment

If I remember correctly, BOY suggests participating whole life from a non-direct recognition highly rated mutual.

 

[Cash]

You can find some really "great" deals with B-rated companies... but will your E&O approve? And there's always asking "what if... they go under?"

Most E&O will cover policies that have a minimum A- rating. Anything below that, well, you're SOL.

If I want a death benefit to be paid out, I'd better have a financially strong company.

I mostly agree BUT:

I am dubious of the ratings companies. How is it that Weiss has Banner and Sunlife as "D" rated companies that are among the ten worst among billion dollar plus life insurers yet Best's has them both as A+? Don't even get me started about the COMDEX. The big rating agencies, I believer, rely too much on the size of the company and not the profit margin, general account performance, and lapse rates.

 

[DHK]

It depends on who you're listening to. If you're looking at the trademarked "Bank On Yourself" website, they only advocate a non-direct recognition, par-WL product. Same as Nelson Nash's "Infinite Banking", etc.

The Insurance Pro Shop says you can do infinite banking with nearly any kind of permanent life policy.

What Every Agent Ought To Know About the Infinite Banking Concept...  Nelson Nash

They'll tell you the 'Infinite Banking' Concept only works with a good participating whole life policy! (Possibly, because they want to recruit you to sell their products.) The truth is, this concept works equally well with a good Universal Life Policy. (Except for some of the guarantees) And, in some cases, because of the flexibility, a Universal Life Policy will work much better than a Whole Life Policy. For more information about using universal life you should read 'Last Chance Retirement' By Brett Anderson

The only problem with using an IUL, is that you may have a year (or longer) where you'll be paying a higher rate of interest on your loans vs the amount of interest that may not be credited in down years. Remember though - it's not about the RATE as it is about VOLUME.

If you have $100,000 cash values earning 5% = $5,000 credited.

If you have a loan of $20,000 paying 8% = $1,600 in loan interest.

The RATE is higher, but your volume of interest credited is higher than the loan interest paid.

If we take out the idea of "Paying more interest than you are charged"... you simply have a pot of money available to borrow against for your spending needs... and can be repaid at very competitive interest rates. Sure, your death benefit is lowered, but any ethical person would pay off their bills with the death benefit proceeds anyway.

Why Life Insurance Policy Loans Help You Save Money