Apr 17, 2022
Over the years we've seen our fair share of dubious sales
practices used by "professionals" to sell the whiz bang awesomeness
of cash value life insurance (both whole life and indexed universal
life).
But none as egregious as when we see financial professionals
intentionally inflating the rate of return by plugging in an
artificially high tax rate in the illustration software. It's done
by using a taxable equivalent yield calculation that assumes a very
high effective tax rate (north of 50% in many cases).
Obviously, this makes the non-taxable nature of cash values look
much better. But it's painting an unrealistic comparison.
Listen to the full episode to find out why we very much dislike
this practice.
And reach out to us if you'd like to explore how a cash value life insurance policy might work for you: https://theinsuranceproblog.com/contact