YourFamilyBank
Expert
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If you wanna chat, feel free to PM me. I can get you on a more in depth webinar or set up a call.
Non Direct Vs Direct Recognition Whole Life
- Thread starter heynow5
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- whole life
If you wanna chat, feel free to PM me. I can get you on a more in depth webinar or set up a call.
arizonamike
New Member
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Is this the same Your Family Bank that uses ECA marketing?
I have listened to the webinar where you have to go to Fla., or Minnesota for a two day training before being allowed to sell.
I was curious as to why you chose MTL, Assurity, and Minnesota life as your carriers...Thanks...
I would recommend taking classes and learning more about IBC.
Be careful on who you work and what they do. I here people say they can design the plans and have places to put the business. Many times they do not do what is best for the client. I have ran into 10 cases that were done and when I see how it was done it....just say bad news.
I have many life policies for different reasons. the person should always find out what you are trying to do first, then work backwards to find the plan.
Be careful on who you work and what they do. I here people say they can design the plans and have places to put the business. Many times they do not do what is best for the client. I have ran into 10 cases that were done and when I see how it was done it....just say bad news.
I have many life policies for different reasons. the person should always find out what you are trying to do first, then work backwards to find the plan.
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- #14
YourFamilyBank
Expert
- 46
Good post. We are running into more and more botched attempts at Banking type policies. Luckily we are catching them before it's too late to fix and either fixing or 1035'ing them to a correctly designed one.
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Read. Read. And read.
Also some of the carriers have some good resources and some good people who will help you out. Some have their own classes as CE you can go through that are decent.
A good mentor will be the best thing to teach you.
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- #16
I have read quite a bit, that's how I ended up here. Been in the business almost a decade and there is always more to learn. I mostly sell investments so I've been researching whole life as a safe place to put money and came across the infinite banking concept. Haven't stopped reading about it since.
There's this place.
They've talked about Bank on Yourself...a few times.
Shameless self promotion is now over.
They've talked about Bank on Yourself...a few times.
Shameless self promotion is now over.
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- #18
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So I'm well read on the subject now and I just wanted to get some opinions on direct recognition carriers. If you agree with BNTRS he has said on this site that MM and ONL have 2 of the best whole products for cash value, Penn being mentioned as well. So those of you that use direct recognition carriers that are not as strong as MM and ONL, what is the reason/benefit of doing so? I understand MM and ONL give up the potential for investments by offering non-direct but if they still outperform many direct recognition companies...
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Different riders that are available that may make a difference when working with middle income market families.
For example: Assurity is an A- rated carrier with A.M. Best. They are direct recognition. But they have a Disability Income Rider available for up to $3,000 per month maximum - even in California! Yes, the rider will have a cost and that cost will come out of the performance and/or increased premiums.
However, when I look at using the policy for "banking" (borrowing and paying interest only for a while and then paying back the principal balance)... it's a great performer. I can easily show how it works and how competitive the CONCEPT is for 'banking'.
However, for RETIREMENT... then at that point it may not work as well as a non-direct recognition company.
As a side note, Assurity just came out with a Joint Whole Life policy that may also be very favorable for an infinite banking scenario... but I don't know for certain because it's not yet available in California.
I'm still favorable to IUL policies for retirement income purposes using variable rate loans as well as Overloan Protection Benefit riders available to avoid the 'Phantom income' scenario that can occur if the policy were to LAPSE and trigger a (LARGE) taxable event. I don't know of any WL policy that offers such a guarantee against that very real possibility.
ProducersWeb - Life - Beware of phantom income when policies lapse
Forbes Welcome
Also, the compensation from selling a MM policy (55% base whole life & 45% on term rider) is not very competitive for the Yield to Broker equation. Ohio National, if you're in a PPGA state will yield a much higher commission.
For example: Assurity is an A- rated carrier with A.M. Best. They are direct recognition. But they have a Disability Income Rider available for up to $3,000 per month maximum - even in California! Yes, the rider will have a cost and that cost will come out of the performance and/or increased premiums.
However, when I look at using the policy for "banking" (borrowing and paying interest only for a while and then paying back the principal balance)... it's a great performer. I can easily show how it works and how competitive the CONCEPT is for 'banking'.
However, for RETIREMENT... then at that point it may not work as well as a non-direct recognition company.
As a side note, Assurity just came out with a Joint Whole Life policy that may also be very favorable for an infinite banking scenario... but I don't know for certain because it's not yet available in California.
I'm still favorable to IUL policies for retirement income purposes using variable rate loans as well as Overloan Protection Benefit riders available to avoid the 'Phantom income' scenario that can occur if the policy were to LAPSE and trigger a (LARGE) taxable event. I don't know of any WL policy that offers such a guarantee against that very real possibility.
ProducersWeb - Life - Beware of phantom income when policies lapse
Forbes Welcome
Also, the compensation from selling a MM policy (55% base whole life & 45% on term rider) is not very competitive for the Yield to Broker equation. Ohio National, if you're in a PPGA state will yield a much higher commission.
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