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

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.
 
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.

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
 
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

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.
 
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.
 
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.

Thanks a lot. Very useful info.
 
My VUL's performance:

RATE OF RETURN 01/01/2020 - 02/20/2020
cae-info-icon.svg

6.81 %
TIME FRAME
Year To Date

RATE OF RETURN 11/21/2019 - 02/20/2020
cae-info-icon.svg

11.61 %
TIME FRAME
Past 3 Months

RATE OF RETURN 02/21/2019 - 02/20/2020
cae-info-icon.svg

23.29 %
TIME FRAME
Past 12 Months
 
My VUL's performance:

RATE OF RETURN 01/01/2020 - 02/20/2020
cae-info-icon.svg

6.81 %
TIME FRAME
Year To Date

RATE OF RETURN 11/21/2019 - 02/20/2020
cae-info-icon.svg

11.61 %
TIME FRAME
Past 3 Months

RATE OF RETURN 02/21/2019 - 02/20/2020
cae-info-icon.svg

23.29 %
TIME FRAME
Past 12 Months

Not get up all in the political weeds here, but doesn't this sound a bit why its a good reason not to nominate a socialist?

Sorry had to. :yes:

That said, your original question is a good one. I would suggest that you look for someone who has had one for over 20 yrs and get a response on that. ;)
 
My VUL's performance:

RATE OF RETURN 01/01/2020 - 02/20/2020
cae-info-icon.svg

6.81 %
TIME FRAME
Year To Date

RATE OF RETURN 11/21/2019 - 02/20/2020
cae-info-icon.svg

11.61 %
TIME FRAME
Past 3 Months

RATE OF RETURN 02/21/2019 - 02/20/2020
cae-info-icon.svg

23.29 %
TIME FRAME
Past 12 Months

This is a great credited rate the last 12 months (i assume before costs deducted), but what about over a longer period of time?
 
This is a great credited rate the last 12 months (i assume before costs deducted), but what about over a longer period of time?
This policy is over 20 years old and all the major contract expenses have dropped off the policy. The returns are gross before expenses and the COI. I'm currently paying an expense ratio that averages 1.3% for 4 funds. There's a current $7.00 monthly contract charge (maximum of $96 annually), and there's a 3.25% premium tax deducted from every premium. The fixed account pays 4.00% interest rate and loans are fixed at 6.00%.
 
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