Can fees change

[Allen Trent]

IMO, it should be a regulation to make the expense report a require part of the illustration. And it should be required to show a detailed breakdown of both guaranteed and current expenses.

100% percent agree. Because I work with agents that are multi-line & have deep relationships with clients, I beg them to show the IUL fee pages. Otherwise, clients get the 1st anniversary statement & piece it together. But I am shocked how few in the industry show it at all or discuss it. Like they are a 1 time sales machine & dont worry about the carnage of the future when people see the gauntlet of actual fees deducted (at the current fee levels)

Fortunately, by policy volume, 85% of our sales are term, maybe 10% WL (mostly juvenile or adult conversions of term) & remaining 5% SPWL to seniors with less than 1% IUL policy sales of large case situations

 

[Allen Trent]

This is very true if looking at the illustration to calculate the fees. Current column shows an increasing DB. COI is charged as a "per $1k of DB". So the increasing DB will have more "thousands" being charged in general. So that must be accounted for if going on just the illustration.

if increasing death benefit is being illustrated, there should be no difference in net amount at risk as both the guaranteed & the projected would both be charging for the same net amount at risk which would be equal to the base face amount. So, on an increasing DB, you should be able to truly see the difference (or backwards calculate) the per 1,000 difference in COI because you would be comparing same exact net amount at risk.

level is where it would be much harder because interest rate/crediting would have impacted the net amount at risk