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

[Allen Trent]

UPDATE

RATE OF RETURN 01/01/2020 - 09/25/2020

17.24 %
TIME FRAME
Year To Date

RATE OF RETURN 09/26/2019 - 09/25/2020

27.61 %
TIME FRAME
Past 12 Months

RATE OF RETURN 06/26/2020 - 09/25/2020

7.85 %
TIME FRAME
Past 3 Months

Considering IUL & VUL dont actually have a ROR listed on most statements, are you giving the gross stated investment/index credited as a % of cash value or are you calculating the actual net ROR after load fees, policy fees, COI,etc? Not knocking your returns mentioned, just wondering which you are stating as the images you posted are not visible by me

 

[DHK]

I've actually spoken to him (a few years ago), and if I remember correctly, it's a VUL with New York Life. (That's all I'll say on that.) And they won't have quarterly returns. The shortest segment should be an annual point to point for an IUL.

 

[f55c6]

Considering IUL & VUL dont actually have a ROR listed on most statements, are you giving the gross stated investment/index credited as a % of cash value or are you calculating the actual net ROR after load fees, policy fees, COI,etc? Not knocking your returns mentioned, just wondering which you are stating as the images you posted are not visible by me

These returns are before the COI is deducted and associated costs. The below is what the illustration reads. I didn't want to post the entire statement. PM me and we can discuss.


"The illustrated values reflect the deduction of underlying fund expenses, which are based on a weighted average of charges for each Investment Division to which cash value has been allocated. These charges are based on the policy's current Separate Account values as of 01/22/2020. In addition, the illustrated values reflect a sales expense charge of 5.0% of each premium in years 1-10 and 0% thereafter (5% maximum in all years). A state tax charge (if applicable) of 2% of each premium, a Federal tax charge (if applicable) of 1.25% of each premium, current monthly cost of insurance charges, current annual contract charges of $84 ($96 guaranteed maximum) in all years. A separate mortality and expense risk charge of 0.60% (0.90% guaranteed maximum) and an administrative charge of 0.10% of the average daily net asset value on an annual basis are made against all amounts in the separate account."

My current Weighted Investment Division Charges Totals 1.37%

 

[f55c6]

These returns are before the COI is deducted and associated costs. The below is what the illustration reads. I didn't want to post the entire statement. PM me and we can discuss.


"The illustrated values reflect the deduction of underlying fund expenses, which are based on a weighted average of charges for each Investment Division to which cash value has been allocated. These charges are based on the policy's current Separate Account values as of 01/22/2020. In addition, the illustrated values reflect a sales expense charge of 5.0% of each premium in years 1-10 and 0% thereafter (5% maximum in all years). A state tax charge (if applicable) of 2% of each premium, a Federal tax charge (if applicable) of 1.25% of each premium, current monthly cost of insurance charges, current annual contract charges of $84 ($96 guaranteed maximum) in all years. A separate mortality and expense risk charge of 0.60% (0.90% guaranteed maximum) and an administrative charge of 0.10% of the average daily net asset value on an annual basis are made against all amounts in the separate account."

My current Weighted Investment Division Charges Totals 1.37%

This is a VUL and not an IUL, which I would not recommend for a young person with a family unless he/she has enough excess cash to invest every single month. I just went on NYL's website and I can tell you my cash value increased $4500 between Friday's sell off on (9/25) until yesterday's rally and close on (9/28). The VUL performs well in a bull market depending on how the money is invested. I'm in large cap growth and cash that pays a fixed 4%.


*DHK is a great financial planner and knows his profession better than anyone I've met so far. I wish I had met him when I was a young man. I have a feeling I would be in a much better position than I'm in today (which isn't bad). I'm just saying. By the way, the Whole Life 10 pay with LISR + PUA is performing better than illustrated. It was illustrated to have a CV = to 87% of premiums at year 5 (non-guaranteed). However, the CV to premiums paid is already at 75% in month 27. A very well structured policy for my grandson.

 

[f55c6]

I cut and pasted the below from my 2nd QTR statement. IDK if this answers your questions. I can tell you the returns were better before Covid-19.

Your current allocations (by asset class)
Here's where you are currently invested

44.81% Large Cap Equity
11.78% International/ Global Equity
17.07% Sector
26.34% Guaranteed Interest Account

Your future premium allocations (by asset class) Here’s where your future payments will be invested

60% Large Cap Equity
15% International/ Global
20% Sector
5% Guaranteed Interest Account

Investment Options Rate of Return Summary

Current quarter
21.84%
Year to date
8.84%
Past 12 months
17.29%

The rates cover only the periods specified above and neither guarantee nor are a representation of future policy performance. Past performance is no guarantee of future results. The rates are the average gross investment rate of return on your Cash Value while in the investment options. This rate of return is unaffected by premiums, partial surrenders, monthly deductions, and other transactions and is meant to convey the rate of return of the mix of investment options, not net policy performance.

The period in question may not be exactly 12 months if the beginning or end of the period is a non-business date.

 

[f55c6]

I cut and pasted the below from my 2nd QTR statement. IDK if this answers your questions. I can tell you the returns were better before Covid-19.

Your current allocations (by asset class)
Here's where you are currently invested

44.81% Large Cap Equity
11.78% International/ Global Equity
17.07% Sector
26.34% Guaranteed Interest Account

Your future premium allocations (by asset class) Here’s where your future payments will be invested

60% Large Cap Equity
15% International/ Global
20% Sector
5% Guaranteed Interest Account

Investment Options Rate of Return Summary

Current quarter
21.84%
Year to date
8.84%
Past 12 months
17.29%

The rates cover only the periods specified above and neither guarantee nor are a representation of future policy performance. Past performance is no guarantee of future results. The rates are the average gross investment rate of return on your Cash Value while in the investment options. This rate of return is unaffected by premiums, partial surrenders, monthly deductions, and other transactions and is meant to convey the rate of return of the mix of investment options, not net policy performance.




Investment Options Rate of Return Summary
4th QRT 2019

Current quarter
9.75%
Year to date
28.90%
Past 12 months
28.90%


The rates cover only the periods specified above and neither guarantee nor are a representation of future policy performance. Past performance is no guarantee of future results. The rates are the average gross investment rate of return on your Cash Value while in the investment options. This rate of return is unaffected by premiums, partial surrenders, monthly deductions, and other transactions and is meant to convey the rate of return of the mix of investment options, not net policy performance.

The period in question may not be exact ly 12 months if the beginning or end of the period is a non-business date.

 

[Allen Trent]

I cut and pasted the below from my 2nd QTR statement. IDK if this answers your questions. I can tell you the returns were better before Covid-19.

Your current allocations (by asset class)
Here's where you are currently invested

44.81% Large Cap Equity
11.78% International/ Global Equity
17.07% Sector
26.34% Guaranteed Interest Account

Your future premium allocations (by asset class) Here’s where your future payments will be invested

60% Large Cap Equity
15% International/ Global
20% Sector
5% Guaranteed Interest Account

Investment Options Rate of Return Summary

Current quarter
21.84%
Year to date
8.84%
Past 12 months
17.29%

The rates cover only the periods specified above and neither guarantee nor are a representation of future policy performance. Past performance is no guarantee of future results. The rates are the average gross investment rate of return on your Cash Value while in the investment options. This rate of return is unaffected by premiums, partial surrenders, monthly deductions, and other transactions and is meant to convey the rate of return of the mix of investment options, not net policy performance.

The period in question may not be exactly 12 months if the beginning or end of the period is a non-business date.

I am sure it is a very solid policy & you have a very good handle on it & the concepts. The caution i always have for agents & consumers is making sure they are keeping an eye on the internal charges in any UL chassis policy (UL, IUL,VUL). Especially considering all utilize Annual Renewable Term pricing that increases each year you age based on the net amount at risk per 1,000 of death benefit. So, maxing the cash value & minimizing the net amount at risk can be of great help to minimize your internal charges, etc.

I also wish there was a VUL out there that didnt have such high investment separate account charges. 1.37% deducted for investment charges before you get returns credited is a bit high today compared to Index Funds & ETF funds that can be as little as near 0 or .10%,etc.

 

[DHK]

*DHK is a great financial planner and knows his profession better than anyone I've met so far. I wish I had met him when I was a young man. I have a feeling I would be in a much better position than I'm in today (which isn't bad). I'm just saying.

You are very kind, thank you.

If you would, would you mind posting that on my Facebook page? I'd appreciate it.

David Kinder Insurance and Financial Solutions