Best IUL with variable loan provision

[Sheryl J Moore]

I understand why agents chase target. Sometimes though, as we've all seen... its not in the clients best interest, but rather the agents best interest. (which is where alot of the negative stigma on PLI points to)
And I'm not talking about any particular company/product. Just in general.


Great movie, and a classic line that gets used a ton around my house!

You know- my frustration is that the insurance companies/wholesalers don't train our salespeople what target really is. I wrote a great article about it: FUNDING UNIVERSAL LIFE INSURANCE AT TARGET? YOU'RE MISSING THE POINT: REPRINT #LIAM2019 - Wink.

If salespeople knew that target is just a pricing metric, and has nothing to do with how a product should be funded, it would really help. We need to do better on educating salespeople HOW to actually fund all UL plans, and target has nothing to do with it!

And I don't argue with your words on salespeople aiming for target because it helps their pocketbooks. However, I also hold the insurance companies/wholesalers responsible more than the salespeople. When is the last time that someone told you that adding a term life insurance rider to the IUL will often make the cash values accumulate WAY FASTER and much higher than base policy alone? It makes sense- the term insurance costs are less. Premium for premium, the cash is increasing more quickly on the base/term blend than the base/base. However, the illustration software defaults to 100% base policy. I don't think I've ever heard a wholesaler educate salespeople on this function of product performance?

 

[pfg1]

You know- my frustration is that the insurance companies/wholesalers don't train our salespeople what target really is. I wrote a great article about it: FUNDING UNIVERSAL LIFE INSURANCE AT TARGET? YOU'RE MISSING THE POINT: REPRINT #LIAM2019 - Wink.

If salespeople knew that target is just a pricing metric, and has nothing to do with how a product should be funded, it would really help. We need to do better on educating salespeople HOW to actually fund all UL plans, and target has nothing to do with it!

And I don't argue with your words on salespeople aiming for target because it helps their pocketbooks. However, I also hold the insurance companies/wholesalers responsible more than the salespeople. When is the last time that someone told you that adding a term life insurance rider to the IUL will often make the cash values accumulate WAY FASTER and much higher than base policy alone? It makes sense- the term insurance costs are less. Premium for premium, the cash is increasing more quickly on the base/term blend than the base/base. However, the illustration software defaults to 100% base policy. I don't think I've ever heard a wholesaler educate salespeople on this function of product performance?

I hear you.

The problem with the term rider....if you add term, it hurts the target... thus the conundrum for many agents.

I'm sure we've all seen the folks that run the target up and sell min premium, which should be something the companies don't allow, imo. Alot of agents design/sell based on what they want, not necessarily the client. With a complicated product, its hard for the avg client to know if what they are being sold is the best fit for them or not.

Welcome to the forum!

 

[Sheryl J Moore]

Oh, I KNOW the term rider hurts target. However, there are plenty of agents who don't even know about it, and wouldn't care; wanting what is best for their prospects. PLUS, using this strategy can help in competitive situations.

Thanks for welcoming me back. My son's suicide kind of put a dent on my creative juices for years. Nice to feel like I have my "mojo" back! ;-)

 

[Allen Trent]

Learn alot about IUL go to: login

Unlike your training videos suggests, agents without securities licensed should not be discussing or illustrating costs of mutual funds. Especially when you give the impression that a mutual fund charges 3-4% in annual fees.

Why don't you illustrate an actual SP 500 EFT fund that charges .05 to .15% annually & actually receives the Dividends from the 500 companies rather than merely getting index credits in IUL & FIA without dividends?

I like IUL & promote it, I just don't know why people have to use misleading & likely non-compliant inaccurate cost & tax comparisons.

If that is needed to make the sale, it is what gives us all a bad name. Just stick to sharing that it is an awesome place to get protected & tax diversify their overall savings with their other plans like 401k, Roth, etc. Let the IUL complement, not compete with the others.

 

[Sheryl J Moore]

Amen @Allen Trent! Thank you! sjm

 

[Sheryl J Moore]

It doesn't change the fact that insurance-licensed only agents should not be discussing securities @Iglabash. If they do, they can be found guilty of giving unregistered investment advice, which is punishable by loss of license, fines, and even jail time (depending on the state). Indexed life should not be compared to securities because it isn't priced to perform comparably to securities. Positioning this product in that manner is disingenuous and borderline fraud. sjm

 

[DHK]

I can talk about mutual fund expenses using this tool all day long:

Fund Analyzer | Tools & Calculators

 

[Allen Trent]

I can talk about mutual fund expenses using this tool all day long:

Fund Analyzer | Tools & Calculators

Correct, but his video used a his own info & actually showed an avg mut fund expenses to be 3-4%

2018 avg actively managed equity mutual fund was .76% & bond fund .55%. avg passive index equity fund .2%. his video was stating expense ratios of 5-20x that amount. Do you think that might have a little impact on a piece of software not provided by the IUL carrier being presented. Using such software to directly compare costs & features of investments & insurance is definitely playing in an industry you may not be licensed to be.

Generic FINRA tools that a consumer can use are a different & more acceptable tool

 

[alexey_pshedrom]

thanks

 

[hunschuld]

Reply is to the original question.

Look for the contractually maximum VLR For example Midland NA is 6% that is the highest rate they can charge on a VLR. Allianz has a lower max rate.