paulallred
Super Genius
- 117
Symetra or Ameritas may work in ca with that rider?
Best IUL
- Thread starter insurgal81
- Start date
paulallred
Super Genius
- 117
Hi Insurgal81, North American Builder Plus IUL is the best IUL contract in existence, period. The main thing you must do is fund the desired death benefit with the Maximum Non-Mec Premium. I'll be glad to give you all the details.
- 4,549
Totally agree. But 10- 15 large writers of UL have done so in recent yrs. While not criminal, it may be civil issue as lawyers are trying to get class action status for some. Regulators may step in when they can prove mortality experience has been better than expected at time of product design. COI increases are only happening because the carriers can't lower the interest guarantee of 4-5% on many. Wall street journal just put this article out in the last few days.
Universal life insurance, a 1980s sensation, has backfired
- 11,266
The problem wasn't with the product, but in how these UL policies were sold.
"Double your coverage for no additional premium!"
or
"Whole life for half price!"
and/or
"Our policies pay 9%... indefinitely."
If only minimal payments are made, then, as Guy Baker would put it: they are not "funding the box". They are "paying the curve". And the agents set it up that way because the idea was to get a large death benefit for as little as possible.
Today, with IUL policies, unless purchased for non-lapse guarantees... it makes NO sense to NOT maximally fund these policies. The less the policy is maximally funded, the more the costs of insurance charges are being charged against a smaller amount of cash values that could've been there.
"Double your coverage for no additional premium!"
or
"Whole life for half price!"
and/or
"Our policies pay 9%... indefinitely."
If only minimal payments are made, then, as Guy Baker would put it: they are not "funding the box". They are "paying the curve". And the agents set it up that way because the idea was to get a large death benefit for as little as possible.
Today, with IUL policies, unless purchased for non-lapse guarantees... it makes NO sense to NOT maximally fund these policies. The less the policy is maximally funded, the more the costs of insurance charges are being charged against a smaller amount of cash values that could've been there.
paulallred
Super Genius
- 117
Great point and I didn't mean criminal literally just what a horrible thing to do to your customer base!
- 11,266
And actually, my post may have been incorrect, because it's not just increasing costs of insurance that's the issue, but the costs of insurance SCALE upon a whole class of policy holders... and THAT would really suck. That can happen when insurance company miscalculating their reserves, higher mortality experience, or lack of returns on the general account.
When companies, such as Ohio National, claim that they have never raised costs of insurance on their UL policies (and reportedly, Ohio National actually LOWERED it 3x over the course of offering UL policies)... they're talking about increasing beyond current charges as illustrated.
When companies, such as Ohio National, claim that they have never raised costs of insurance on their UL policies (and reportedly, Ohio National actually LOWERED it 3x over the course of offering UL policies)... they're talking about increasing beyond current charges as illustrated.
I think this is the downside of the way insurance is sold.. they are basically the manufacturer of the product. .they want to be as hands off as possible.. everything is laid out in the contract... they leave it up to the agents.. and unfortunately .. many agents who are pooly educated or just thrown to the wolves do what they know best .. so the blame is mostly with the agents.
The potential of cost of insurance has always been there. it's just another factor.. .there are many ways for the insurance company to cover themselves.. one is by lowering cap rates, or eliminated the floor rate.. another is to increase the COI..
though if I were a marketing director of one of these insurance compnaies.. I would stronly oppose it because it just sounds bad
even though WL carriers can simply do it by lowering their dividends.. that's just an easier pill to swallow because most people are aware that the dividend rate can and will go down.
Another terrible thing to do to your customer base base is to treat in force business different than new business for caps/rates. Like NA/Midland.
Actually MNL and NA do not have different cap rates for new or inforce business. Everyone with the same policy gets the same caps. Perhaps you are confusing different versions of products?
Builder 7 is different from Builder 6 But all Builder 7 policy holders get the same caps as a person buying a Builder 7 today. And all Builder 6 policy holders get the same caps when they renew as any other policyholder.
MosesNewmanNAAIP
Super Genius
- 149
I really like TransAmerica and Allianz. Both of those carriers pay 110% thru N.A.A.I.P.
We work with dozens of other IULs, but these are my personal favorites.
We work with dozens of other IULs, but these are my personal favorites.
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