IUL... Leads/ books/ YouTube videos

[Jessica Durphy]

Hey everyone...

I was wondering if I could get a few more experienced agents in this space to chime in.

I personally have an IUL - I understand how it works and what it's "illustrated" to do for me in the future! I understand the tax perks and the 'individual' that would be a viable prospect for this product.

I've purchased a couple of books & watched several YouTube videos, about the pro's and con's.

Here is the thing- I'm super confident in my ability to sell this product, however my insecurities come from a concern of not KNOWING (without a doubt) that the illustration will play out the way it's "illustrated" to..... If no loans are taken.

Another thing- I'm scared of 'hurting' someone. The illustration is only as good as the one inputting data!

What carrier do you use to sell this product? I personally have F&G... But what other contracts would you suggest? I'm in KY!

Purchasing Leads: I found on YouTube -during my searching... Caboomleads.com .... Does anyone know anything about these?! Have you had any experience? What was your success rate?!

Training: what was your experience with training using the different carriers... Did you feel supported?!

Any advice is welcomed... Thank you!
Jessica

 

[Tahoe Ray]

It will never be as illustrated. You need to accept that. Could be better, could be worse.

Buy from large carriers that have sold IUL for a long time and have great renewal rates and a history of not hosing the client by raising expenses.

Illustrate returns well below (100bps or more) the maximum.

Use real indexes, not pretend ones that were invented last year (but show a 20 year "history" of backtested success) with a 5% vol marker.

Solve for death benefit rather than premium. Max fund always and fill in additional death benefit needs with term.

Critical and chronic illness riders on those products are near worthless if you're following all of the above. The majority of the death benefit should be your cash, not the net amount at risk.

Good luck!

 

[DHK]

Here is the thing- I'm super confident in my ability to sell this product, however my insecurities come from a concern of not KNOWING (without a doubt) that the illustration will play out the way it's "illustrated" to..... If no loans are taken.

It absolutely will... on the guaranteed columns and all premiums are paid as illustrated.

IUL is a concept sale. Many things in it can and will change from year to year, particularly indexing crediting strategies, available indexes, index performance, etc.

Btw, even WHOLE LIFE insurance will not perform as illustrated. WL illustrations are based on current dividend scale being projected out for the life of the contract.

Yet dividends are paid out based on:
- investment performance of the general investment account
- favorable mortality experience being better than anticipated (fewer death claims)
- controlled operating costs

If we can temper one's expectations, WL can be a better way to go to meet your values.

Purchasing Leads: I found on YouTube -during my searching... Caboomleads.com .... Does anyone know anything about these?! Have you had any experience? What was your success rate?!

Caboom leads are offered by Cody Askins. He's good guy, but personally I'd trust him more for final expense than for IUL/annuity stuff. Just my overall impression.

Training: what was your experience with training using the different carriers... Did you feel supported?!

Product training and support is very different from actual sales training.

We did our first podcast about IUL. You may find it interesting:


I also did one on WL dividend rate misrepresentations:

 

[Allen Trent]

I understand the tax perks

can you share with me what you believe the tax perks to be?

that might be good starting point of understanding, etc

 

[Allen Trent]

Critical and chronic illness riders on those products are near worthless if you're following all of the above.

assume you mean on cash accumulation max funded designs, not protection focused design where no lapse solve & chronic illness rider might be the goal

 

[Tahoe Ray]

assume you mean on cash accumulation max funded designs, not protection focused design where no lapse solve & chronic illness rider might be the goal

Correct. That's the "following all of the above" part.

I detailed how to get the best CV results from an IUL. Just me personally, but I don't believe IUL should be purchased for any other reason.

 

[Allen Trent]

Correct. That's the "following all of the above" part.

I detailed how to get the best CV results from an IUL. Just me personally, but I don't believe IUL should be purchased for any other reason.

agree.

But do you have a preference product wise for no lapse to 120 with Chronic illness? Have seen some IUL versions with it that seemed as good or better than traditional UL & could solve for any length of payment period

 

[Tahoe Ray]

agree.

But do you have a preference product wise for no lapse to 120 with Chronic illness? Have seen some IUL versions with it that seemed as good or better than traditional UL & could solve for any length of payment period

I only will offer true 7702b benefits (or 101g w/ without permanency clauses and with $4$ reduction on the death benefit).

I also require the policy to be fully guaranteed. I don't want someone to be 85 and have to have an "oops, this didn't work" conversation.

7702b riders also have some tax advantages (deductibility) that others don't.

I'd like to see the IUL version that you've seen.

 

[scagnt83]

I think Nationwide and Hancock are the only IUL LTC Riders that are 7702.

I agree with Ray, it makes very little sense if the policy is structured for strong Cash Value accumulation. Its essentially no different than a Loan of the CV.

If you want a true Guarantee of LTC Benefits using a life policy, buy WL. And if you want a 7702 LTC Rider on WL, Guardian is the only one I know of. (Mass changed to 101g)

 

[Tahoe Ray]

I think Nationwide and Hancock are the only IUL LTC Riders that are 7702.

I agree with Ray, it makes very little sense if the policy is structured for strong Cash Value accumulation. Its essentially no different than a Loan of the CV.

If you want a true Guarantee of LTC Benefits using a life policy, buy WL. And if you want a 7702 LTC Rider on WL, Guardian is the only one I know of. (Mass changed to 101g)

Securecare III from Securian is built on a WL chassis but not in the spirit of what you're saying (a real WL policy with a 7702b rider).