Does WFG's IUL Return 9.35%?

[ATM]

I will never sell TransAmerica because of what they did with my personal policy.

I owned a product with a different carrier that Trans bought. Happens, no big deal I thought.

Several years go by and being as diligent as most clients I received my annual statements and simply glanced at them and put them in the file.

Last fall I took a closer look at my statement and noticed that there was no premium credited to the policy for the entire year. Since I always pay my bills I thought maybe I had just paid it a little early and maybe doubled up the previous year. Checked that statement and no premium was listed either. And there was none in the year before that.

I called the customer service line and inquired about not receiving premium notices and thought maybe they changed my address or something went wrong. Nope. The girl told me that Trans simply decided to stop sending premium notices to clients 3 years ago.

Nice. So they want the policies to lapse and they are running a stealth operation that will catch many clients off guard. Unethical and immoral if you ask me.

This is a UL policy and I also asked for an inforce paying the max NonMEC premium every year because I was so mad I want to force them to pay the death benefit. Screw them!

Well after getting 4 different inforce illustrations that were all incorrect (apparently TA has never heard of Maximum NonMEC Premium) I spoke with the one person who runs them and talked him through what I wanted. I finally got the correct illustration and guess what? Even at current rates and current charges and paying the maximum premium the policy will lapse at age 74.

I dare you to find a piece of junk that bad anywhere else in the insurance world. Tells me they have not only reduced rates (acceptable) but they have also increased internal charges.

You want to work with people who do that to clients? If so you know what to expect.

 

[Rayy]

There are so many carriers who do much better than Transamerica IUL.

Allianz, Voya, Columbus Life, North America, maybe Nationwide depending on your clients situation. There are much more better options than Transamerica. I dont even think Transmamerica has a participation loan available.

I'm rather concerned if most of the members who commented on this thread are in fact licensed agents offering your opition on products which seems you have very little knowledge about.
All IULs have different crediting stratigities and most products have multiple options on how they calculate returns from the many different indexes offered. FYI, very few companies use the S&P as their only index.

There are usually multiple cap rates for one product depending on how the IUL is structured and what is chosen.
The Transamerica FFIUL for example has a cap rate of 13.75 for the basic S&P index and 15% cap on their Global account, with 100% particapation and interest credited monthly. The floor on that product is .75%

I offer all these companies except Columbus Life and I dont agree they are better or worse...just different . Pac life has an uncapped strategy that credits every 5 yrs. Nationwide has the mulitipler but lower cap rates, which is effective for low market returns. 1 product is not right for all clients, shop around if you can and learn how products work before talking about an IUL while explaining a whole life

Id love to know what specific IUL products and why you think its better since I always want to provide the correct product for a specific clients needs.
Thanks

 

[AndrewSookiassian]

I recently left WFG. The WFG IUL they're talking about, aka FFIUL is proprietary to WFG agents offered through Transamerica. Towards the end of my time at WFG I stopped selling the FFIUL and started doing the Nationwide Accumulator IUL. Since going independent, I sell North American's IUL Builder 8. Cost of insurance on Trans IUL is a lot towards the later years.

Some great info from the posters above, I'm happy to have joined this forum! Look forward to learning from you guys and providing value.

 

[StagekissPDX]

Thanks be for these insurance-forums, and for your forthrightness. I got swarmed by 2 agents who tried to recruit me into VFG or whatever they're calling themselves.
Many thanks to this forum for all your help in deciding on a telesales group, and for helping me to stay a county-wide away from groups like this. Bless each of you for your help and refreshing honesty. I like statistics and metrics, and you bring it in spades.

 

[ChrisV]

Transamerica's FFIUL is exclusively only for WFG agents.

The returns are based on the average of S+P 500 and a couple other indexes. So over the past 20-25yrs the average of those indices have been around 9%.

 

[ChrisV]

It seems like there is a lot of hear say on this thread. Meaning I heard this and I heard that. If you want to find the information, call the company and get the information directly from the source. That is why agents from other companies talk bad about each other and try to compete.


Ultimately, I would like to believe we are all in this industry to help people and protect families. So at the end of the day, at least that family was served no matter what company helped them. That's is what matters most.

 

[Lewis_FL]

Anyone can write the FFIUL. But no one will except WFG agents.
Current caps: S&P account 13.75%, Global account 15.00%. Both have max illustrated rate of 7.75%.

 

[Allen Trent]

Transamerica's FFIUL is exclusively only for WFG agents.

The returns are based on the average of S+P 500 and a couple other indexes. So over the past 20-25yrs the average of those indices have been around 9%.

The average of an index has absolutely no direct comparison to the actual IUL segment credit.

The actual index average includes unlimited positive returns, unlimited negative returns & dividends paid by the stock companies held in that given index.

The IUL index segment crediting average will be temperered by an upside cap & limited bottom rate of zero.

That will make the 2 averages substantially different.

Lastly, the average credited rate is not a net return. Net return as mentioned by the original poster would be after all load fees, policy fees, 1st 10 year issue charges, COI & rider charges. There is no IUL that shows an average growth rate of the net cash value of anywhere near 9%+ whether it is the illustration or the inforce anniversary statements.

 

[Markthebroker]

I have an old co worker that works for WFG. She makes these outrageous statements about these huge returns that I can get, and I just ABSOLUTELY HAVE TO meet with her and hear about it. She is constantly telling me I need to tell everyone I know to meet with her.

It stinks so bad of b.s. I can barely stand it.

 

[Tahoe Ray]

I have an old co worker that works for WFG. She makes these outrageous statements about these huge returns that I can get, and I just ABSOLUTELY HAVE TO meet with her and hear about it. She is constantly telling me I need to tell everyone I know to meet with her.

It stinks so bad of b.s. I can barely stand it.

Show her your account statement where you bought an S&P ETF 10 years ago and ask if she can beat it (or just the index returns) with her crappy fund offerings/IUL.

Or better yet, a brokerage statement with AAPL and similar companies from the same time period.

She'll leave you alone.

Actually, she probably won't but still worth a shot.