Best Inforce IUL Illustration Capability

[CFP83]

Do any of you who sell IUL know of any companies that provide the ability for the agent to show inforce illustrations, and/or let you illustrate proposed changes to the crediting strategies of an inforce policy? What do you use, if anything, to illustrate to the client recommended changes to the policies crediting methods?

We all know that for an IUL to perform at its maximum potential, the agent must regularly sit down with the client and review the policy. In doing roughly 40-50 IUL policies a year since mid-2009, I know have just over 250 IUL policies in force. In having annual reviews with clients, the company I have written most of these policies with, requires a one week notice for an inforce ledger....not ideal by any means. Where my biggest complaint is however is "rebalancing projections".

Today IUL's have multiple indexed crediting methods as well as fixed account options. What I am disappointed with is the lack of ability to show "rebalancing" options for clients with an existing policy.

For example, if Joe has $50,000 of cv in the S&P500 annual point to point crediting strategy, I would to show a basic illustration including a pie-chart of moving lets say 40% to the fixed account, leaving 40% in the S&P500, and putting the remaining 20% into lets say the an international equity index.

Look forward to any feedback here.

 

[scagnt83]

Do any of you who sell IUL know of any companies that provide the ability for the agent to show inforce illustrations, and/or let you illustrate proposed changes to the crediting strategies of an inforce policy? What do you use, if anything, to illustrate to the client recommended changes to the policies crediting methods?

We all know that for an IUL to perform at its maximum potential, the agent must regularly sit down with the client and review the policy. In doing roughly 40-50 IUL policies a year since mid-2009, I know have just over 250 IUL policies in force. In having annual reviews with clients, the company I have written most of these policies with, requires a one week notice for an inforce ledger....not ideal by any means. Where my biggest complaint is however is "rebalancing projections".

Today IUL's have multiple indexed crediting methods as well as fixed account options. What I am disappointed with is the lack of ability to show "rebalancing" options for clients with an existing policy.

For example, if Joe has $50,000 of cv in the S&P500 annual point to point crediting strategy, I would to show a basic illustration including a pie-chart of moving lets say 40% to the fixed account, leaving 40% in the S&P500, and putting the remaining 20% into lets say the an international equity index.

Look forward to any feedback here.

I am not aware of any illustration systems out there that do this.

I think that the best way to handle this (currently) is to just use assumptions for that allocation option.

So if you think that option will return an annualized 5.5% over the next 10 years, then have the internal people run the next 10 years at 5.5%.... or some variable of what you expect.

One week for inforce illustrations is ridiculous! LFG usually has them back in 48 hours.


But that presents the problem of coming up with the actual assumption... but if the product has that option, then the illustration system should most likely be able to do a lookback with that allocation.
If not, there are a few 3rd party options, but they are pretty limited.
"Go Figure Now" is one. Mcp Premium is another. They both seem to have their own limitations.

 

[INS42]

Pacific Life has a system called Planned Performance Tracking that has these capabilities.