Could an IUL with L/B be a replacement to a Cancer policy, etc?

[myinsurebiz]

No, I am saying the client accelerates 70k but the company only pays out 40K but the remaining DB is only $30K since $70K was accelerated. The amount actually paid is based upon how the condition affects mortality and it will always be less than the amount accelerated. Some companies have a plan that pays a flat rate upon acceleration but most do not.. Especially, the ones that advertise no cost acceleration riders.

Yea - gonna have to check that out.

If they only approve 40% - then, IMO, there should be 60% left . . .

Seems the insured is getting ripped.

Any way to avoid this?

 

[Tahoe Ray]

Could an IUL with Living Benefits be a replacement to a stand alone Cancer policy, etc?

Winnebago strategies (you can live in it and drive it, but your house and car do each individual job much better) are inefficient.

That being said, you can certainly use one product to cover multiple needs. Hybrid LTC is one example (but buying traditional LTC is more "bang for the buck").

The issue with this concept is that any living benefits on IUL is really self-insuring. If you max fund an IUL (which IMHO is the way it should be sold) then your DB ends up being very close to your cash value.

There are other policies with living benefits based on the DB that don't accrue much (if any) cash value.

To me, that would be a better "Winnebago" strategy.

 

[Tahoe Ray]

Yea - gonna have to check that out.

If they only approve 40% - then, IMO, there should be 60% left . . .

Seems the insured is getting ripped.

Any way to avoid this?

Normally, if you pay for a rider, you can find $4$ reductions on a DB. If it's "free", then you end up with the actuarial calculation the Rouse mentioned.

 

[myinsurebiz]

There are other policies with living benefits based on the DB that don't accrue much (if any) cash value.

good or bad?

 

[myinsurebiz]

Normally, if you pay for a rider, you can find $4$ reductions on a DB. If it's "free", then you end up with the actuarial calculation the Rouse mentioned.

Ameritas LB rider is no cost . . . I think Forester's and ANICO's are too . . .

 

[rousemark]

Yea - gonna have to check that out.

If they only approve 40% - then, IMO, there should be 60% left . . .

Seems the insured is getting ripped.

Any way to avoid this?

Use a company that charges a premium for their riders that pays a fixed amount for a covered event.

Here is an AIG brochure.. Pay particular attention to the enxt to last paragraph on page two...

http://www.agla.com/lifeinternet2000/careerweb.nsf/Lookup/8534 SLTR/$file/8534 SLTR.pdf

Notice that blindness is covered. There was a case where a fellow had been blinded and asked to accelerate his $50K they offered only about $1000 since blindness does not have a great affect on mortality. (been so long I don't remember exact amounts but this is close)

 

[Mattschmidt]

Ameritas LB rider is no cost . . . I think Forester's and ANICO's are too . . .

Quit drinking the ameritas kool aid. Better products and carriers out there

 

[myinsurebiz]

Quit drinking the ameritas kool aid. Better products and carriers out there

Thoughts . . .

Newsletter 3-7-18 | Indexed Life Digest

https://www.carylevinson.com/iul-digest-ranks-ameritas-flx-index-ul-1/

 

[myinsurebiz]

Quit drinking the ameritas kool aid. Better products and carriers out there

I like Foresters too and their rates are very competitive it seems . . .

But - wonder if their LB are accelerated the same way?

 

[myinsurebiz]

I like Foresters too and their rates are very competitive it seems . . .

But - wonder if their LB are accelerated the same way?

Learned a lot here.

http://marketing.foresters.biz/pdfs/504100-Your-Term-Product-Guide-Foresters-Financial.pdf

The carrier determines the payout % - that worries me . . .

I wonder if there is an industry wide "actuarial" process or standard that is used amongst carriers?