Lloyds of Lubbock
Guru
- 714
The Guardian policy also lets you change fro dirct recognition to a variable loan rate at the end of the 10th year.
Agents don't mention PUA rider, why?
- Thread starter ls015
- Start date
Lloyds of Lubbock
Guru
- 714
They'll pay a reduced dividend, but you'll still get a dividend on the amount borrowed against.
The dividend is not necessarly reduced.
On Guardian policies with an 8% loan rate your dividend in the first 20 years of the policy is credited at 7%. Spreads change as policies get older.
I believe NML has a 75 basis point spread on the life of the policy so your dividend credited is at a rate of 7.25.The dividend crediting rate is NOT a rate of return.
The increased dividend in a low interest rate environment lessens the net cost of the loan.
If dividend crediting rates crept up and were let's say at 8% then your rate would be negatively impacted by a loan.
The dividend is not necessarly reduced.
On Guardian policies with an 8% loan rate your dividend in the first 20 years of the policy is credited at 7%. Spreads change as policies get older.
I believe NML has a 75 basis point spread on the life of the policy so your dividend credited is at a rate of 7.25.The dividend crediting rate is NOT a rate of return.
The increased dividend in a low interest rate environment lessens the net cost of the loan.
If dividend crediting rates crept up and were let's say at 8% then your rate would be negatively impacted by a loan.
Try running an illusion with the base policy plus PUA up to the MEC limit. Then show withdrawals beginning at retirement or some other significant date of the client's. Run the illusion out to age 100 or longer if current assumptions will carry it.
You'll sell something.
Now, before presenting MAKE SURE YOU UNDERSTAND THE ASSUMPTIONS!!!!
and run the illustration at guaranteed and also higher than guaranteed. People that have money don't intend to spend it all which means leaving some to heirs who are loved. That will be the fallback/guaranteed sale. The greed sale will be the current assumption and what they can take back out.
Keep in touch with this person. There will be future sales especially while they're still working.
You'll sell something.
Now, before presenting MAKE SURE YOU UNDERSTAND THE ASSUMPTIONS!!!!
and run the illustration at guaranteed and also higher than guaranteed. People that have money don't intend to spend it all which means leaving some to heirs who are loved. That will be the fallback/guaranteed sale. The greed sale will be the current assumption and what they can take back out.
Keep in touch with this person. There will be future sales especially while they're still working.
- 11,273
This guy is looking to buy. He's not an agent.
- Thread starter
- #55
Hope my agent is not showing me "illusions"
Last edited:
- 11,273
They're ALL illusions, until properly explained and disclosed exactly how things work.
- Thread starter
- #57
Just wondering, what else can be sold to me? disability insurance? Term insurance? Indexed universal life?
- 11,273
Guardian's dividend option Q is their "indexed" dividend option.
- Thread starter
- #59
- 11,273
I learned the rule of 1:100 a number of years ago.
In one year, 100% of your illustrations will be wrong.
In one year, 100% of your illustrations will be wrong.
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