I'm Enrolling Myself in an IUL...

Discussion in 'Indexed Universal Life Forum' started by MisterRandyWatson, Apr 3, 2011.

  1. ATM
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    ATM Well-Known Member

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    Underwriting has been fair. I can't really argue with most of the offers we get. When I need some help they've been good at giving me some concessions and lateley even more because we've gotten to have a good relationship with our underwriter and the managers.

    I have an decent sized general agency so the $150k number isn't that big of a hurdle because my guys like them and they are now getting the vast majority of our business but I would write them for less comp because they turn apps around fast and the service is second to none.

    I've gotten spoiled so that when I have to call a company and get put into a phone queue or into some electronic system I make a mental note that this company costs me money. I hate it. I call MNL and I get some woman with a Fargo like accent on the other end. I love that.

    Perm prodcucts are good, term was just repriced so it's not too bad and even really good for some ages and ratings.

    The one thing I will say is that MNL is really tight on any sort of grey area insurance sales. They are conservative when it comes to marketing gimmicks, sales systems. seminars etc. Won't do the Tax code number sales like 419, 412i etc.

    They're privately held/ESOP owned and they do what they do very well. They are affiliated with North American but I stopped doing business with them because it is a brokerage insurance company. I don't get the service and I get the same products and for me better comp.
     
  2. CFP83
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    CFP83 Well-Known Member

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    I would "third" the Penn Mutual recommendation.

    2% floor, 13% cap...no other carrier in the industry offers this. More importantly though than those floors and ceilings is their mutuality. I tend to feel more confident in them being more hesistant to "play with the moving parts" based upon the company's great current balance sheet and financial strength. They currently have a 18% "surplus ratio"...for those of you that understand this stat, this is the highest of any company offering IUL. Penn's Comdex is a 96...no other IUL carrier has a higher one.

    Those who are licensed with Penn through their IFN (Independence Financial Network) know that the company's treatment of "brokers" is very good. The producers website that a broker has access to is the same exact website that the Penn Mutual career agents use. At this years Leaders Conference for Penn producers there were more independents than career agents.

    Other advantages: compensation is good, underwriting is fair and quick, and the Regional Directors that brokers go through are very helpful in processing the business and going to bat for you with underwriting.
     
    Last edited: Apr 6, 2011
  3. WiseFS
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    WiseFS Active Member

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    PacLife has 100% participation, with a few different crediting options:

    - A Fixed Account (5.25%)
    - 1 year segment, 1% floor, 12.5% cap
    - 5 year segment, 0% floor, no cap!

    They have recently added a 2 yr segment and global indexes but I'm not 100% sure on the details of them.

    Wash loans after 10 years.

    They will upgrade your product automatically (w/o any fees) to their new products in the same line (i.e. higher caps or higher floors)

    As an Agent I love that they have a free program which will compare their product vs. all other major competitors. So I can get a side-by-side comparison. That in itself shows me how confident they are and it's also a great tool when I'm trying to outsell my competition.
     
  4. shooter
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    shooter Well-Known Member

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    What is the commission level on an IUL with Penn and with Pacific Life?
    What about renewals?
    Just curious,
    Thanks
    Shooter
     
  5. sell more life
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    sell more life Member

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    Hey guys,

    Minn Life creams Penn Mutual....

    15% cap 100% participation, fixed int. acct. 3%

    OR

    140% participation with a max. growth cap of 9.5% and max. index credit of 13.30%..

    (S&P 500)


    Thought I'd add my "two cents"!

    km
     
  6. ATM
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    ATM Well-Known Member

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    I own a Midland product. No front load and you can add a waiver of surrender charge option so it's a true no load no surrender life product. 13 different index options and most importantly has extremely stable crediting history.

    They don't jerk around the caps and participations rates like most other companies. I've owned it for 4+ yrs and the S&P pt to pt went from 14% to 13% and back to 14% over that time and the participation rate is guaranteed to be 100%.

    There's a lot more that goes into these products but I like the liquidity of no surrender charges if needed and so do my clients. Who wants 10 - 15yrs of surrender charges on top of front end loads? I don't and rarely sell them because things can change and if I'm locked down with big surrender charges that limits my options.

    To me that has alot of value. I'll gladly give up a little cash 30 or 40 yrs from now for ready access to cash values if I need them. Offer that to a client and they will too.
     
  7. WPM
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    WPM Well-Known Member

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    I like the Midland/NA products as well. I go back and forth between the Surrender Charge waiver vs having better long term values for folks that have adequate short term savings.
     
  8. scagnt83
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    scagnt83 Well-Known Member

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    What is the loan rate? Is it fixed?
    Are loans DR or NDR?
    What are the expenses like?

    What is MinnLife's surplus? Total assets?
     
  9. CFP83
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    CFP83 Well-Known Member

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    KM, thanks for your input and participation in this conversation.

    Minnesota Life does indeed have a very good IUL product, but you are incorrect in saying "it creams" PM's product, it is actually inferior.

    I have done a great deal of research on IUL company's. Minnesota life's product has a 15% annual point-to-point cap however a 0% "floor". What this means is that in a negative S&P500 year the Minnnesota life product will not credit any interest at all. Utilizing hypothetical historical data, there is no 10yr S&P500 segment that the Minnesota Life product would beat an IUL that has a 13%cap and 2% floor.

    Regarding the "fixed bucket" (non-indexed account optoin), Penn's is currently paying 5.25%.
     
  10. Briefcaseboy
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    Briefcaseboy Guest

    I know nothing about what yall are talking about :) BUT I did go to the Penn Mutual site and look at their IUL's. Hmm interest received from investment in the SP 500 and you have the flexibility of moving from a interest bearing account to a fixed account. If you can read the SP500 stock market charts ( I know how, I've trading for 15 years or so ), you could move your assets from the fixed account to the interest bearing account during a market rally and then protect yourself during a correction by moving these same assets back into the fixed account. I would love that aspect of it, if that is the way it works. :)
     

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