Infinite Banking Concept

[heynow5]

I thought direct recognition just paid a lower dividend on loaned amount...which companies pay no dividend on loaned money?

 

[YourFamilyBank]

I thought direct recognition just paid a lower dividend on loaned amount...which companies pay no dividend on loaned money?

Some do, some don't. It's called Dividend Recognition Factor in some companies, others call it something else. Basically, it determines what % of the uncollateralized cash dividend are we going to pay on the part of the cash that IS collateralized.

I've seen several that don't pay anything but the guaranteed interest and some, like MTL, that pay like 95% of what they would have paid if there was no loan.

 

[BYSFG]

Going through different carriers again, what do some of you think about LSW and their Modal Premium Additions Rider in terms of using it for this concept?

The numbers seem to rival that of Assurity's.

Am I missing something?

 

[aclaro]

Going through different carriers again, what do some of you think about LSW and their Modal Premium Additions Rider in terms of using it for this concept?

The numbers seem to rival that of Assurity's.

Am I missing something?

Why would you look anywhere but the top carriers? Both those companies are second tier products. I'm partial to MassMutual, mostly because it's the best. Then after that stick with NYLife, Guardian, Met, Ohio National.

 

[pfg1]

I agree that alot of the bigger carriers have great products. But LSW does have some of the best living benefits in the business, if that is important to you or your clients.

 

[BYSFG]

Why would you look anywhere but the top carriers? Both those companies are second tier products. I'm partial to MassMutual, mostly because it's the best. Then after that stick with NYLife, Guardian, Met, Ohio National.

I actually don't have access to those carriers nor do I really know in depth what they can or can not offer. I am looking into them though.

I agree that alot of the bigger carriers have great products. But LSW does have some of the best living benefits in the business, if that is important to you or your clients.

That is actually one of the main thing since it is some what "bundled." Mainly the critical portion of it. Sure I can offer a stand alone critical illness but most clients shy away from it cause of reduced benefits after a certain point etc.

 

[scagnt83]

I actually don't have access to those carriers nor do I really know in depth what they can or can not offer. I am looking into them though.

Any agent can sell Mass Mutual, Guardian, or Penn Mutual. Just call the regional office and contract directly. Their products are MUCH better than LSW... by far. Pick up the phone and call your closest regional office, if you need the number, google is your friend.

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That is actually one of the main thing since it is some what "bundled." Mainly the critical portion of it. Sure I can offer a stand alone critical illness but most clients shy away from it cause of reduced benefits after a certain point etc.

Infinite banking should be marketed to high net worth individuals. They are not the demographic that has a strong need for CI coverage. If you are pitching IB to prospects who have a need for CI, then you are likely wasting your time because there are more productive activities you could do.... I would also increase the amount of E&O you have...

 

[pfg1]

Any agent can sell Mass Mutual, Guardian, or Penn Mutual. Just call the regional office and contract directly. Their products are MUCH better than LSW... by far. Pick up the phone and call your closest regional office, if you need the number, google is your friend.

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Infinite banking should be marketed to high net worth individuals. They are not the demographic that has a strong need for CI coverage. If you are pitching IB to prospects who have a need for CI, then you are likely wasting your time because there are more productive activities you could do.... I would also increase the amount of E&O you have...

I don't completely agree that IBC should only be marketed to hnw. I have a number of avg net worth clients using that concept very well, with smaller policies. It just takes a little longer to build your bank if your premiums are $500/mo vs much larger.

Living benefits - particularly the critical illness rider is a great addl feature on a life policy. Most of the mutual wl carriers don't offer critical -yet. I have had one claim on a critical rider with LSW. My client was in perfect health a year earlier, and got the highest rating...had a heart attack. The company handled it extremely well, and he was VERY thankful his policy had that feature. I wish more par wl companies had it... most all have chronic and terminal, but those are much less likely to be needed than critical, imo.

 

[DHK]

Assurity just became my favorite whole life product due to its complete disability waiver of premium - INCLUDING the PUA rider, and having a disability income rider up to $3,000 per month for 2 years.

I think it's rather rare to find a complete disability waiver of premium on a permanent policy - particularly in California.

 

[Ksutton]

Assurity just became my favorite whole life product due to its complete disability waiver of premium - INCLUDING the PUA rider, and having a disability income rider up to $3,000 per month for 2 years. I think it's rather rare to find a complete disability waiver of premium on a permanent policy - particularly in California.

I agree - it is rare . I'm not sure about California , but I know in PA American Income Life has The DIWOP - also , with their renewable and convertible term product - if insured is disabled , completely while the term is In force - the DIWOP will convert it to WL of the term is going to expire while the DIWOP is active