IUL
What year was the IUL Created
1997
What are the two types of FIA's?
1. Growth
2. Income for life
What are the Term Years?
10, 15, 20, 25, 30 Years
What is the Tax Code that makes Life Insurance Tax Advantage?
IRC 7702 A
What are the 6 Steps to Financial Independence?
1. Cass Flow 4. Proper Protection
2. Emergency Fund 5. Building Wealth
3. Debt Management 6. Preserving Wealth
What is the difference between Level, Increasing, and Graded/Optimal Switch in an IUL?
Level: Death level stays the same throughout the years of policy.
Increasing: Death benefit increase as cash value increase in later years.
Graded: switch from increasing to Level at age 76.
Optimal Switch: Death benefits start increasing then it becomes level automatically
What is the "Target Market" for Rollovers?
Age 40-45: Good Rollovers
Age 46-59: Great Rollovers Market
Age 60-72: Best Rollover Market
What are the 4 Living Benefits? give example of each
1. Critical illness
2. Chronic illness
3. Terminal illness
4. LTC illness
When did the Tax Code IRC 7702 A come out? What else did Congress create that same year?
-1913
-The Federal Reserve System
What are the two Methods to pay off Paying Debt?
1. Snowball Method
2. Avalange Method
What are the 5 Benefits of an IUL
1. Compounding Interest
2. Probate Avoidance
3. Living Benefits
4. Loans & Withdraws
5. Retirement
What are the 5 Benefits of an FIA?
1. Guaranteed no Principal Loss
2. High Rates of Returns
3. Indexed Growth
4. Pension like Payout
5. Bonus 10-30%
What are the 5 Benefits of a Term LB?
1. Flexible
2. Convertible
3. Living Benefits
4. Affordable
5. Probate Avoidance
What Tax Code makes Life Insurance Tax Deductible?
IRC Code 162
What is the Rule of 72? Give one example of how it works for you or against you?
Rule of 72: How long it takes your money to double based upon interest being earned.
What are the two things that has to happen for an IUL to perform at its max capacity?
1. It has to be structured properly by the agent
2. It has to be funded properly by the client
What is the difference between Qualified and Non-Qualified accounts? Give examples of both!
Qualified: Tax Later. Money that has NOT been taxed yet. ((401k,457,403B, TSP, TSP, IRA)
Non-Qualified: Money that HAS been taxed already. (Stocks, Brokerage Accounts, Cash, CDs, Roths)
What are 2 benefits that are in a Term LB and also an IUL?
1. Probate Avoidance
2. living Benefits
What is Tax Code IRC 7702 B?
Tax Free Long Term Care
What are the two things someone can have in place for Estate Planning?
1. Will
2. Trust
Who created the IUL and Why?
E.F. Hutton created the concept of the IUL. Transamerica was the first company to offer the product.
How do you know you can Rollover the money?
-Age 59 1/2 or older
-They are Retired
-Money is in an Old account (previous employer) Inheritance, cash, IRAs, Divorce money, stocks, any money outside of current employer/active annuity.
What is the difference between the old kind and the new kind of Term life insurance?
Old Term: Expires and only pays out if you die.
New Term: Convertable W/I first 10 years, has LB, Level premium, Can add riders.
What tax codes allow Tax-Free Growth, Tax-Free Withdrawals and Tax-Free Beneficiary Death Benefit?
What years did these tax codes come out?
-IRC 72 (e) TEFRA - Tax-Free Growth 1982
-IRC 7702 DEFRA - Tax-Free Withdrawals 1984
-IRC 101 (a) TAMRA - Tax-Free Beneficiary Death Benefit 1988
What are the 4 Questions you ask a client after they get approved?
1. Now that we got you approved, what would you like to leverage this account for? Is it for Retirement, major purchase, College for children, Down payment on a home?
2. At what age would you like to leverage this account in the future, not today or tomorrow?
3. How much money would you need to have saved up, tax free worst case scenario?
4. What are you currently leveraging that’s going to give you _____ by age ____. What vehicle do you have that going to allow you to save _______ by age ______.