HB Anon, for all your righteous high-flown talk about "...Loss of cash value ...never has been deceptive..." isn't it funny how so few people--including most of the WFG agents I’ve worked with--even know that? Funny that eh? Virtually NONE of the client-victims who bought this policy have ANY idea TA just KEEPS their cash value when they die. Our uplines sure didn't urge us to tell them!
HB Anon. You just underscore the fact that the FFIUL is an *absolutely horrible deal.* The client is WAAY better off buying back-to-back Term policies and putting their premium HUGE premium savings rest in a super low-load S&P 500 ETF like VOO, tucked neatly inside his Roth IRA. He can come out *millions* ahead. Millions in his Roth vs flat-busted when his FFIUL *FAILS* by the time he's 80.
Folks, never, I repeat, NEVER buy an xUL policy for the death benefit. No pre-packaged xULs--least of all WFG/TA's mangy fee-infested FFIUL--makes sense if you actually want to GROW your wealth. The only good reason to ever invest in any xUL is for the powerful *tax shelter* if can offer--IF it is properly packaged. This involves keeping your death benefit to the bare minimum--*not* constantly increase it like WFG agents try to get you to do. Don't forget folks, the higher your death benefit, the more monstrous your late-life COI charges which I guarantee that, if you live a reasonably long life, will BUST your FFIUL leaving you with NOTHING. Why? Because you'll have to pay these monstrous COIs out-of-pocket because--guess what?--you've used up your cash value to increase your death benefit!
Folks, if you actually maxed out your Roth and have millions more to invest, you can consider a Private Placement Life Insurance (PPLI). This is a tailored cash-value insurance package with an xUL at its base. Search on "Keeping What You Make Edward Renn" to read about a PPLI at the fa-mag site. That's just one of many PPLIs venues out there.
Two key differences between a PPLI and a conventional xUL like FFIUL is that
a) A PPLI will let you pass down to your heirs *your cash value* along with your death bennie and,
b) the investment portion in the PPLI is totally transparent, even self-directed. E.g. if you want you can actually get an S&P 500 ETF like VOO and every cent you earn you get to keep--including the dividends. Or you can invest in a hedge fund. Or in whatever. By contrast, the FFIUL investment portion is a total black box to the policyholder. But it's a safe bet most of it comes from safe high-quality bonds, not index funds, so Transamerica minimizes its risk. This is why strong anecdotal evidence suggests the index account portion of the FFIUL gives an average annual rate of return of a tame 3--5%--far FAR below WFG’s typical non-guaranteed fantasy pie-in-the-sky illustrated rates of 7.5--9.0%.
Truly folks. The FFIUL is about the LAST thing anyone should ever want to buy. Ever.
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