FE Agent, new to IUL

[scagnt83]

4. Guaranteed Death Benefit (providing a death benefit that is guaranteed for a specified time period),

Sheryl,
Can you explain the actuarial reasons why GIUL and GVUL are sometimes able to provide a lower premium guaranteed DB vs. GUL? It seems GVUL is especially becoming a GUL killer. Are they able to put less in reserves? If so, is that not a disaster waiting to happen for carriers?

 

[bill3173]

@bill3173 - was that the old AIG AG Advantage WL product? sjm

No, It was the Master Life product. I remember the advantage WL, didn't it have ballooning death benefit, designed for estate protection of high net worth clients?

 

[Sheryl J Moore]

@scagent83- Yes, reserving for variable products is far different than reserving for fixed insurance contracts. I've never priced a VUL, so I would need to bring in an actuary friend for answers on that unfortunately. I'm not qualified to answer this one. sjm