Whole Life Vs. Indexed Universal Life - YouTube

Alright. You have begged for it. Whole life insurance versus indexed universal

life. I get it. You know what? It wasn't until it enough you emerged came forward

and said, "I want to know what you preferred Kris." That I said, "You know what? Let's

shoot a video on it." For some years are like, "What is this? What are these letters?

What do they even mean?" Ultimately, we're talking about a massive debate in the

world of insurance. You know me, I'm a real estate guy, right? So, I funneled my

money through insurance and then I dumped it real estate. Some people say,

"You should funnel into this vehicle called whole life insurance." And some

people say, "You should funnel into index to universal life." Listen, if you don't

know what I'm talking about, you got to watch the video stay to the end. I'm

about to duke it out with my buddy because I do not agree with him.

Okay. What's up Rob Gil. I wish we could say that we are good as friends.

But the reality is.. Dude, I don't get it, right? I mean I know they're both valid

products. But whole life insurance. I've been using it for over 10 years. I put my

money in. -Yes. -And then I take it out and I dump it in real estate and I pick up

multiple benefits. -Yes. -But dude, this index universal life stuff is tied to the

stock market. So.. Yeah, can go up higher but dude it can take it go down. You can lose

money. -Well you can be broken even. You could cap the floor at zero. -Dude who

wants to be broken even? I got my money as eroding right now at the rate of

inflation. -Yeah. So for us, when it comes to the IUL compliment... -Are you

saying us to feel like there's many people on your side when it just looks

like it's me? -Yeah. These guys stand with me. -I'm just so... So, all you good folks out

there. So, with the IUL, if you complement it with whole life in certain situations

based on your financial support... -Does it mean you're retreating into my camp right now and you're

actually walking on index because you're going to pair it up? -Well what

I like to do is be able to show all the good folks out there as they begin to

step into a different space of greatness. -Right, right. -And this is a conversation

we might absolutely why the lives but being able to use the IUL in times to

complement your whole life of the markets going up 15, 20, 30

percent, why not be able to grab 8 or 9 percent on the policy... -Yeah, but what

happens.. What happens when the market goes down? -It's a good question. -No, answer it.

-Good question. -Answer it. -Usually depends on the carrier. -Come on dude, lay it out.

Don't pussyfoot. -So, if the market is down 5, 10 or 20 percent, you'll be down maybe one

percent or you can block it at 0%. -You can put it down to 1% or 0%.

-So, listen. You got to ask yourself, right? Like, I'm just going to tell

you where I'm at. I don't really believe in investing in insurance. I just

want the benefit of it to help support my other investments. -Okay. -So, when you do

an IUL, you're basically saying, "Actually I'm investing in the stock market.

Actually, I want higher... Like for me, insurance is an investment." I'm like,

"Alright. I get that." For some of you might actually be. But dude, there's some

downside. Don't you want the steady-Eddie?" -Kris, you are confused brother. Let me

just tell you that right now. Because at the end of the day, when it comes to

premium finance strategies and you use your indexed universal life with whole

life, instead of doing just stay planning where you put your life

insurance into a trust, you can now create a tax-free distribution strategy

on your exit from age 60 to 80, 70 or 90 by complementing the IUL with the whole

life. -Explain that to me. That's new to me. -Yes. So... We'll we do some premium

finance strategies. You have to have a certain level of net worth. But in that

space, the bank pays the premium. -Okay. -Right? And the insured pays the interest

on the loan from the bank. -You're kidding me. -Yeah, 100%. -Hmm. -Right? If you do that

over time, after maybe 12, 13, 14 years, it depends on the product. Depends on how

you structure. You have to pay through your cash value. The the bank back the

loan. -He's fighting dirty right now. I thought I knew everything about this.

Right now I'm actually like... I think I need to learn a few more things. That's

kind of cool. I didn't know that. -Yeah. -Just in general though, the idea of

having an IUL go back to zero or one percent. -Yes. -And it's like... I think people

have to ask himself, "What am i investing in? Do I want my... Am I counting on what

I'm gaining from the insurance company? Or is this facilitating my investment or

is it some of both?" I mean for me, I just look at everything all the dividends I

get on my whole life as a benefit because really I don't care as long as

it's facilitating my investments. -Remember, you still get a guarantee in

the IUL. Right? So, there is a guarantee there

except you could tap in on the upside of the market and add the protection on the

downside. So, in the end, when you can pair the both... -Brings it back to zero

and one? -Yeah. But you're in that scenario, you would assume that the markets down

10 years in a row and it doesn't work, right? But if you have a market that goes

up and down but it's always trending up and you have a long term view point,

nothing is short-term. In that space, you can take advantage of the up market. Now,

what I will say is I'm whole life, I love whole life first and foremost. But as a

compliment with an IUL, there's a lot of value in there. So, I just signed a

freaking huge double-digit policy on whole life.

Should I be adding some indexed universal life? -The next policy we're

going to have to bank pay for it. Kris Krohn will have an IUL policy inside...

-No, no. If I do that would mean I'm eating a lot of crow.

And pride will keep that from happening. But the bank's paying my premium? -Yes. -What

do you mean by that? -Oh.

You going to eat the crow? -Yeah.. No! No! I'm not eating the crow. I'm curious.

I'm just curious right now. So, what the bank will do is... You know, let's say

it goes from your average... Let's say your premium is 100,000. -Okay. -Just

throw that number out there. And now, all of a sudden, we're going to buy a death

benefit. That's 50 million. -Okay. -Because you're that person that's accelerating.

-Okay. -Somebody like you. So now, all of a sudden, the premium to maintain that kind

of coverage is 500,000. -Okay. -But you're building... You know, you're

building everything that... You build them so you want to dump your money back into

your business but you want the proper coverage. -Yes.

-So, what'll happen is the cash value is collateral to the bank. The bank

pays the premium and they'll do that for 12 years. So now, you have the

big-ticket item life insurance which gives you the ability to buy all those

different bills. -Yeah. -Did not know that. Dang! You're smart. You're too smart for

your own good. Friends, today we're talking about the difference between...

-I think we just got another policy out of it. -I think you did. The last was costing me like an arm and a leg but I

won't put it back in real estate. So, it's all good. -But now this little disclosure

interest payments. -Okay. -Yeah. -Alright. So, listen. I don't know if you're any

clearer right now. I'm feeling like I need to go back and retract some

statements and I think through a couple other things. -My only concern is when he

comes back to me, he's going to come back with bullet points and we're going to have

to take this to the next step. -Probably. Listen, I'll tell you this... I

mean, Rob and his team, they clearly know what they're talking about. They're

incredibly experienced. Took me a decade to find this team to actually run and

own and build and operate all my insurance needs for my company. And now,

doing it for a lot of other people as well. So listen, if you're looking for

saying... "Wait." For some of you, you're super savvy and you got what we just

said. Some of you went a little over your head. But here's the bottom line. Bottom

line is when you're going to save money and then put it into an investment or an

alternative investment, you always have an option of directing

it first through insurance. Whether it's an IUL or if it's whole. And

when that happens, you pick up more benefits. We're arguing about which and

how many benefits you want to get and what's the best way to maximize the

Bennie's. And if you want to know, it's ultimately going to be customized

to you personally. So, if you don't know what that looks like for you, there's a

link below, reach out to Robin and his team. They'll actually do free consultation.

Actually work up a bunch of options and actually

demonstrate what an IUL would look like. What a whole life policy would look like

and ultimately what it looks like to funnel that and leverage that as a

vehicle to enhance your alternate investments, real estate, anything else

like that. -Can I create one little creative distinction? -Yeah. So for all the

good folks out there, an IUL is not a variable life insurance policy

which variables actually that is invested in the stock market. It doesn't

have any protection from the downside and there is no guarantee. This is not a

variable. -Yeah. -This is an IUL. -Now, you have key distinction on that as well.

Friends, thank you so much for watching. Rob, dude. Thank you for being here.

Thank you for duking it out. -You just broke a bunch of bricks

yesterday. -Yes, -Wood. -Yes. So, listen. If you're not a subscriber, fix that right

now. I'm going to march over your freaking house and we're going to... *Haya!*

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