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I love that you believe most agents understand options are utilized to attempt to get the upside returns. Most agents I ask just think the carrier puts the money in the index & somehow with pixy dust takes away the downside
Dont forget the 50% annual bonus on those returns!!
The ones who do know, but still drink the coolaid, use that as the reason they are able to give 50% more or 100% more than what the actual index did.... with zero downside... its buying business plain and simple.
And imo its way worse than the UL issue of the 70s/80s. At least there were only 3 moving parts in those. IUL now has 7 or 8 moving parts for carriers to reduce client returns.
And at least UL usually had half decent minimum rates, like 4% or 5%. Most IUL Caps can be reduced to 2%. Many participation rates can go down to 20%.
Just a 20% adjustment to both Caps and Expenses, and taking away the non-guaranteed bonuses, would crash many IUL policies on the market right now.
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