“It is how billionaires get rich”
October 16, 2024 by Sheryl J. Moore
>>>>>>>>>>>>>>I got seriously ticked-off last night.<<<<<<<<<<<<<
I had a representative from Culligan come to my house, to service our water filtration system.
The young man (probably a decade younger than me?) was remarkable because he remembered when we moved into our home, seven years ago. At that time, he was working for FedEx, and remembered how “friendly” we were. I liked him immediately.
After about an hour, I checked on him. His work was nearly complete. As he was cleaning-up his tools, he asked me what I do.
I explained that I am an expert in the life insurance and annuity space, and he got all excited. He asked me if I had ever heard of “indexed permanent life insurance.”
Indeed, I responded. I let him know that I had helped to develop some of the most competitive indexed life products in the country, and at one time worked for the #1 seller of indexed life insurance products.
It was at this point that I got ticked off.
He explained that he was curious because he bought indexed life because “it is how billionaires get rich” and it “allows him to take loans without paying interest.” He went on to mention how he was breaking his back, as a single dad, to put as much money into his IUL because it would “guarantee his retirement income” would be there.
Had he seen videos about IUL on Tik Tok?
He had.
I had to explain to him that what he saw about indexed life on social media was not reality.
If billionaires were building their wealth using indexed life, the sales of this product would be much greater. I should know- I track the sales of the products each quarter.
He may continue to earn indexed gains on the money he takes as a loan on his contract, but he likely is charged a loan interest rate (even if the credited rate meets or exceeds the loan interest rate).
His projected annual income from the contract, during retirement, will not be guaranteed. He could earn less than what his illustration depicted, and may even earn 0%.
He was deflated.
He was a good kid, trying to do right by himself and his daughter, and he had been misled by Tik Tok videos on indexed life.
Why don’t the regulators do something about this?!? I’m disgusted. -sjm