Indexed Universal Life (IUL)

1. Indexed Universal Life (IUL) April Deng 1-10-2015

2. The Evolution of Phone

3. The Evolution of Life Insurance

4. Types of Life Insurances • Term Life Insurances Pros: 1) Affordable and therefore can get large face amount. 2) Some employers may provide it. Cons: 1) You have to die to get death benefit; 2) Not portable if provided by employer; 3) May be denied at renewal if though employer • Permanent Life Insurances • Whole Life • Variable Life • Universal Life • Indexed Universal Life • Variable Universal Life

5. Savings program mirroring Index: • Guaranteed growth 0-15% • Tax advantages • Access cash value at any time • Lawsuit/creditor proof • No effects on college financial aid

6. 6 Not for The Public, Internal Training Only For Internal Training Purpose Only

7. IUL: Index Universal Life • Indexed UL credits interest based on performance (or weighted) of a linked Index or Indexes, multiplied by a participation rate, subject to a cap and a floor rates.

8. IUL Market Concept of IUL Never Lose Money – Warren Buffett

10. What Can IUL Do For You?

11. Case Study 1 • Mr. Young • 30-year-old • Father to a new born baby • $300K mortgage • Family AGI $140K • 10% contribution to 401K • What can IUL do for him?

12. 30 Year Old, 700K IUL At age 85, Total return = $168,806 + $744,053 + $555,162 = $1,468,000

13. Case Study 2 • Mr. Mature • 50-year-old • Family AGI $200K • Kids have grown up • $220K Rental property • What can IUL do for him?

14. 50 Year Old, 800K IUL How likely will his 220K house become a 2 million house in 35 yrs? Maintenance free ? Tax free?

15. College Education Funding

16. Asset Protection

17. Frequently Asked Questions about IUL

18. IUL too expensive? Case I. 40 Years old Male, Preferred plus rate class, $500K face amount From Age 40-80, total 40 years, IUL Case II. 40 Years old Male, Preferred plus rate class, $500K face amount From Age 40-80, total 40 years, Term 20 years + another term 20 years Buy a BMW vs a Ford. A Mansion vs renting an apartment

19. IUL too expensive? Case I 40 Years old Male, Preferred plus rate class, 500K face amount From Age 40-80, total 40 years, IUL Cost total: $5,252 + $4,800 + $14,625 + $26,602 = $41,279 Annual average cost : $1,032 Case II 40 Years old Male, Preferred plus rate class, 500K face amount From Age 40-80, total 40 years, Term 20 years + 20 years Cost total: $8,160 + $51,160 = $59,320 Annual average cost : $1,483, Actually $2,100

20. It’s Too Good To Be True? Shift to Wealthier Clientele Puts Life Insurers in a Bind The Wall Street Journal - October 3, 2010

22. Any Drawback in IUL? • Depending on health condition • Not for short term investment • Designed to be adequately funded, not under-funded. • Early cancellation strongly discouraged. Need discipline!

23. Just like the BMW M-6, IUL is a great vehicle,If only you know how to drive it!

24. Real Short-comings of IUL • Too complicated • Like all modern cars, the BMW M6 is very complicated • BMW sends the buyer of their M6 to special driving school before they hit the road • M6 needs true professionals who can maintain the vehicle in a proper way • Designed to be sufficiently funded • You buy a super car like the M6, you expect it to consume some gasoline, so fill up the tank before expecting it to outrun a Mazda • You lose money if the policy is cancelled early on • You buy a brand new M6, and sell it next year, you’ll not get all your money back. Aren’t those common sense?

25. Thank You! Conclusion A well maintained IUL can do tremendous things for family!