Can I see an example of an improperly structured IUL?

Jul 16, 2019

  1. dbab
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    dbab Expert

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    As I research IULs more and more, I keep coming across a recurring caveat. Basically, an IUL can be great, "as long as it's structured properly". Every time I read that, the author never gives an example of what an improperly structured IUL looks like.

    Can someone give me an example or explain what an improperly structured IUL looks like?
     
    dbab, Jul 16, 2019
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  2. Tahoe Ray
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    Tahoe Ray Guru

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    Typically, one run at or below target premium. That is also a design where 100% of the premium is normally commissionable.
     
  3. jdumond
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    If for income...
    - Min DB/Max Accum solve on the Face amount
    - Increasing DB during payment premium paying years (typically)
    - illustrate a Level DB or B to A optimal DB when allowing to grow (no income, no premium payments)
    -Reduce face in the year when income begins.

    Typically the increasing death benefit will pay less to the agent, however, it is most often the ideal set up for a client looking to maximize their potential income from the IUL.

    Hope this helps.

    Joe
     
    Last edited: Jul 17, 2019
    jdumond, Jul 17, 2019
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  4. rousemark
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    rousemark Still Here!

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    It all depends on the purpose of the insurance and what the client hopes to accomplish...
     
  5. Allen Trent
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    If you would have asked this question a week or 2 ago, I would have had many ideas for you. However, after a lot of qualitative & quantitative research supplied to me by a household renown tax & financial expert, I would now say that every IUL or UL is improperly structured from a client perspective. This financial guru opened my eyes to the scam. I have called the carriers on my various UL policies & have asked for the CV to be sent to me. I have also applied for 27 different Fixed Expense and Guaranteed issue policies to fit my cash values into. I slept so good the last few nights knowing I am close to having non-scam policies.
     
    Last edited: Jul 17, 2019
  6. DHK
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    DHK, Jul 17, 2019
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  7. jdumond
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    yeah, call Pac Life
     
    jdumond, Jul 22, 2019
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