Dionysis78
New Member
- 1
That would work in theory... but it doesn't always happen. I'll upload what I mean.
I've uploaded a policy illustration with Assurity life's whole life. I'm using a $10,000 annual premium (to keep the math and numbers easy). I'm solving for "Input Premium for Max CV Accumulation" in their software. Generally this gives me about 60% cash values in the first year, and the rest is "commissionable premium".
To keep it fair, I'm not going to include ANY other riders on this comparison - no disability waiver of premiums - nothing.
The summary for the attached illustration is:
- $6,023 guaranteed cash values in year 1
- $261,686 initial death benefit and increases from there.
- Policy is GUARANTEED to "break even" in year 12 ($120,000 paid, $120,036 cv)
- Policy is NON-GUARANTEED to "break even" in year 9 ($90,000 paid, $93,356 projected cash values)
That's a pretty good policy design.
Now let's compare with AccumUL Plus (since that was the product that was brought up). I have access to that product design through WinFlex online.
Parameters: Age 36, male, standard non-smoking - just as before.
Face Solve - maximum funded premium based on $10,000 per year.
Initial Death Benefit: $935,712. With that huge increase in death benefit, it erased any accessible cash values for the first two years.
The policy still doesn't break even after 20 years (guaranteed). It does break even after 13 years on the non-guaranteed side.
This is just an example of comparing policy strategy. I know there are more ways to skin a cat, and I keep trying various strategies while still trying to preserve a decent commission for me too.
EDIT: I just did a new illustration with AccumUL with a specified face and premium... and it's definitely skewed. Not something I could show a client because after two years, the premiums are forced to be reduced to about $700/year. I don't think it MEC'd... but it might as well have.
Also, a non-max-funded WL from Assurity would have a higher death benefit, but take closer to 30 years to "break even" guaranteed and 19 years non-guaranteed.
You probably hit the guideline premium for that UL forcing the lower premium.
