Have you been hearing radio ads for something called Wealth Beyond Wall Street offering a free book if you call a toll-free number?
The promise sounds enticing: Use an index strategy to share in the upside of the stock market with no downside risk. If you’re wondering what that’s all about, I’m going to spill the beans in this review.
Wealth Beyond Wall Street is the brain child of marketer Brett Kitchen, and Ethan Kap, a financial advisor. They typically appear together in pictures dressed in black suits and black sunglasses, standing next to a classic Mustang. (Reminds me of the Blues Brothers every time I see it.)
Before Wealth Beyond Wall Street, they called it Safe Money Millionaire and the 101 Plan.
When you call their toll-free number to take advantage of their free book offer, you’ll also be offered a free consultation or “blueprint” from one of their advisors.
It turns out the product they use to participate in the upside of the market, with no downside risk, is Indexed Universal Life or IUL. And they will try to convince you it’s the best financial vehicle ever invented.
Yet IUL may actually be the worst financial vehicle ever invented… and this review will prove it.
I’ve spent literally hundreds of hours investigating Indexed Universal Life, which resulted in a definitive exposé and video I published.
Here Are the Most Important Things You Need to Know About Indexed Universal Life:
- New York State’s top financial watchdog launched an investigation into the sales practices used by both insurance companies and advisors who promote IUL policies, because they were “deeply concerned” that the illustrations consumers were shown were “wildly inaccurate.”
- As a result, state insurance regulators recently adopted new guidelines for marketing materials that limit the investment gain that can be used to illustrate a policy’s performance. However, “IUL takes illustration abuse to new and unnecessary heights,” in spite of attempts to regulate it, according to an article on risk management from the Society of Financial Services Professionals.
- The fact of the matter is that an Indexed Universal Life policy can indeed lose value in years when the market goes down or sideways. And it can even lose value in the years when the market goes up by just a little.
But I have yet to meet an advisor selling this garbage who will warn you about this.
- In recent months, several insurers have notified tens of thousands of policy owners that they are exercising their rights to raise costs – a LOT.
When that happens, your premiums go up – a LOT! These premium increases policy owners are being notified of are truly shocking – ranging from about 40% to over 200%!
- For example, one 76-year-old man’s Indexed Universal Life premium leaped 81% on a policy he purchased only seven years earlier. Can you imagine the shock of getting a notice in the mail telling you your premium just jumped by so much, you can’t afford to fund it any more and will be forced to let it lapse?
Here Are Four More Downsides of Indexed Universal Life You’re Probably NOT Being Warned About:
- Although some policies offer an interest rate guarantee of 1%, 2% or 3% per year to offset years where the market goes down or is flat, most do NOT actually credit you that interest every year. They may do it every five or ten years or, very commonly, only when the policy is terminated! (It makes the illustration look good, but it’s pure fiction.)
- It is entirely possible that you could pay premiums every year and end up with NO cash value and NO death benefit, if the stock market indexes used don’t perform as projected.
- The companies offering these policies can change how much of the market’s increase you’ll be allowed to share in, at their discretion.
- While some policies offer a guarantee that your policy won’t lapse, if you have that guarantee, it simply means you’ll have a death benefit. But it doesn’t guarantee you’ll have any cash value. And with no cash value to fall back on, you’ll have to continue to pay premiums out of your pocket to keep the death benefit in force.
If you request a full illustration for an Indexed Universal Life policy (rather than the rosy-projections-only portion you’ll often be shown), two scary things should become apparent to you:
- There are numerous warnings and disclaimers throughout. In a typical IUL illustration from one of the biggest companies selling the product, we found no less than 65 warnings and disclaimers!
- In a full illustration, you will see several scenarios which will show your cash value has gone to zero – literally disappearing.
Don’t be fooled by a smooth-talking advisor – the illustration shows your cash value going to zero because it absolutely CAN happen.
Do You Really Need Another Hope-and-Pray Strategy in Your Financial Plan?
The bottom line is that no other life insurance product comes with as many guarantees as dividend-paying whole life. And there are little-known riders or options available that make your cash value grow significantly faster, while paying the agent 50-70% less commission. Download our FREE Special Report, 5 Simple Steps to Bypass Wall Street, Fire Your Banker, and Take Control of Your Financial Future to get all the details.
Brett Kitchen and Ethan Kap used to promote dividend-paying whole life insurance… before they went over to the dark side and started selling IUL. It’s a switch more than a few advisors have made, because it’s an easier, sexier and more profitable product to sell.
BUT I can assure you that if Indexed Universal Life lived up to the hype, that’s the product I would own and would be writing about.
Buyer Beware – Don’t Be Fooled!
At Bank On Yourself, we know there’s no reason whatsoever for you to have to take unnecessary risks with your money. If you want a financial future based on guarantees, rather than hope and prayers and keeping your fingers crossed, you’ll want to talk with a Bank On Yourself Authorized Advisor to find out what your bottom-line guaranteed numbers and results would be.
Request a free, no-obligation analysis and receive a referral to an Authorized Advisor who is specially trained in designing the supercharged dividend-paying whole life insurance policies Bank On Yourself relies on.