Does anyone have an IN FORCE IUL that's doing exceptionally well?

Dec 18, 2017

  1. AndrewSookiassian
    Offline

    AndrewSookiassian Expert

    Posts:
    27
    Likes Received:
    2
    State:
    Nevada
    I know IULs haven't been around that long and we sell it conceptually. I'm curious to see how policies that are 10 years or older have been performing. Obviously there are a lot of factors that come into play, just curious if there are any policies that have built up a good amount of CV.

    The biggest backlash I hear is high COI in the later years, which is a valid concern if the market doesn't perform well in those years or if the cap is dropped substantially in the later years. Any input is appreciated.
     
  2. DHK
    Offline

    DHK "YOU CAN'T HANDLE THE TRUTH!"

    Posts:
    8,417
    Likes Received:
    2,261
    State:
    California
    Policy structure and funding is probably more important. However, let's remember that the S&P 500 index is actively managed.

    List of S&P 500 companies - Wikipedia
     
    DHK, Dec 18, 2017
    #2
  3. AndrewSookiassian
    Offline

    AndrewSookiassian Expert

    Posts:
    27
    Likes Received:
    2
    State:
    Nevada
    Thank you DHK. So let's talk about that. I started out with WFG but have recently gone independent because I just didn't like the way they did business. My upline wrote me $500k IUL when I committed to $200/month. The target premium on the policy was over 3,000. Clearly not in my best interested and underfunded. I should have gotten a lesser face amount and blended it with a term. What I've been taught as a general rule of thumb is this:

    Run it at GPT Increasing, and target premium should not be more than 10x monthly contribution.

    Any thoughts? I just wrote an IUL for my cousin who's 33, very healthy. Committed to $300/month so I wrote him up on a $250K IUL with North American. Target is 2257.

    I just want to make sure I do right by my clients and I do everything on my end to make sure it performs well. Obviously I can't control the market or their habits, but I want to make sure that I'm doing everything the right way.
     
  4. DHK
    Offline

    DHK "YOU CAN'T HANDLE THE TRUTH!"

    Posts:
    8,417
    Likes Received:
    2,261
    State:
    California
    Sounds about right. However, don't forget to look at the increasing policy costs in the later years and compare them as well. Look at the cash values at age 65 & 85 and compare them to the death benefits. The lower the gap, the lower the overall insurance costs.

    There are many ways to "skin the cat", and I'm far from the expert on IUL. Scagnt83 holds that title in my mind. Just compare those numbers. Make out a case study spreadsheet and compare minimum, maximum, target, all with options A, B, & C... and figure out the optimal blend keeping death benefit, cash values, and long-term policy expenses in mind.

    That's how (I believe) you make good recommendations that meet the agent's "sleep at night" factor.
     
    DHK, Dec 18, 2017
    #4
  5. AndrewSookiassian
    Offline

    AndrewSookiassian Expert

    Posts:
    27
    Likes Received:
    2
    State:
    Nevada
    Thanks a lot. Very useful info.
     
Loading...