Concept Training

1. Building Your Business
Agent Training
The Whole World is Changing
Whole Life

3. http://www.marketwatch.com/story/scary-1929-market-chart-gains-traction-2014-02-11/print?guid=93670D26-9278-11E3-B214-00212803FAD6

4. Scary 1929 market chart gains
traction
• Opinion: If market follows the same script, trouble lies
directly ahead
• There are eerie parallels between the stock market’s
recent behavior and how it behaved right before the 1929
crash.
• That at least is the conclusion reached by a frightening
chart that has been making the rounds on Wall Street. The
chart superimposes the market’s recent performance on
top of a plot of its gyrations in 1928 and 1929.
• The picture isn’t pretty. And it’s not as easy as you might
think to wriggle out from underneath the bearish
significance of this chart.

5. Until You Remove The Risk
it’s NOT a Planning
…..It’s Hoping

9. Whole Life (WL)
a 20-Year History
the shocking numbers

10. Whole Life (WL) a 20-Year History
the shocking numbers
WL or Indexed Universal Life
Which one Builds More Wealth for Retirement?
National Underwriter does a study each year
where it compares the illustrated returns in
WL policies vs. the actual returns.
It’s very interesting because the actual rate of
return in WL policies going back 20 years is
typically 2% LESS than the "illustrated" IRR.

11. Who are the Whole Lifers? (WLers)
Agents who have the following characteristics:
1) They use WL as their primary wealth building
tool for clients
2) They know nothing or very little about IUL
3) They have an uniformed opinion that IUL is a
"new type of policy" without a track record (even
though they've been around for over 15 years)
4) They don’t know what variable loans are or how
beneficial they can be for clients
5) They don’t know about the living benefits offered
by IUL policies (like a FREE LTC benefit)

12. Who are the Whole Lifers? (WLers)
As a general statement, the following are agents
who use the following systems and will
typically recommend WL, NOT IUL, as a
wealth-building tool: Infinite Banking
Concept (IBC) or Become Your Own
Bank (BYOB), LEAP system, and agents who
are “captive” (or act like they are) at
companies that do not offer IUL policies
(Northwestern Mutual, New York Life,
etc.).

13. Who are the Whole Lifers? (WLers)
• Why do the these agents typically use WL
vs. IUL?—because they don’t know any better.
Why?
• Because some are lazy (they don’t want to do
research), or too trusting (trusting a company,
sales system, or IMO/GA that WL is the
best/only way to build wealth with cash value
life (CVL) insurance).

14. The numbers- historical internal rate of return
(IRR) of various WL policies using a 20-year look
back vs. what they actually returned:

15. IRR is not the greatest measuring stick because
it simply measures cash accumulation.
As you know, the power in using Cash Value Life
insurance is in the ability to borrow money
tax free from the policy in retirement.
This is where WL (Whole Life) really gets
destroyed by IUL.

16. WL vs. EIUL for tax-free dollars in retirement
Assume our example client is 40 years old, pays
a $10,000 premium year for 25 years, and
then max borrows from the policy from ages
65-84 (20 years).
The following chart shows some of the WL
numbers.

18. How much tax free income could be removed
from an IUL policy over the same time period
using the back tested rate of return of 8.78%?
An incredible $90,846 each year.

19. If I lowered the assumed rate of return in the
IUL policy to 7.00% to make a “conservative”
example, you’d think the numbers would be
terrible, right?
Wrong. The conservative number
is $50,365 each year
which still destroys the numbers from the WL
policies listed in the NU study.