Understanding IUL Mechanics

[Allen Trent]

[EXTERNAL LINK] - Pacific Life lawsuit back on track after complaint refiled

Human nature can undo awesome illustrations & spread sheets very quickly. This is why I absolutely cringe at the statements that IUL is just a better tax strategy than a 401k or Roth.......no, those are optional deposit plans & IUL/WL can & will have severe consequences if the planned contributions are not made or the plan is cashed in early.

I guess I just tend to not trust humans to stick to their plans even when sometimes they were the ones that read/saw something & wanted to build that kind of plan

PS-- would love to know if this was designed as max funded. Seems to not be very good surrender value if it was being maxed funded. $505k in premiums, $248k in interest gains means almost $500k in policy fees & surrender charges if they got back only $202k at surrender. Math isnt adding up for me, but maybe I am not following. (I get that the client is mistakenly thinking the carrier made $248k in investment gains they didnt ultimately give the clients even though we all know carriers dont earn investment gains in an IUL)

 

[Lloyds of Lubbock]

Years ago there was a publication called the Kugler system by Frank Rainaldi.
It explained the mechanics of different types of Life Insurance.
It was generic and not company affiliated.
If he has updated this and includes IUL you will find it very helpful.

 

[Sheryl J Moore]

Their filings to NAIC appear to show them as #18 in Life Insurance Premiums marketshare. However, Market share is likely New & renewal premiums. Maybe Pacific could be #2 in New total life premium for 2022

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LIMRA is owned by their "members" (insurance companies). They are my third-party market research firm's competitor. sjm

 

[PrivClientSG]

Number 1, 2, or whatever in "sales" or "premium" is separate, distinct, and non-correlated -- from quality of product, "best" product, "very good" product, or anything of the like.