Initial IUL Investment Limit

[Sheryl J Moore]

@Tahoe Ray I love participating in Insurance-Forums.com! Some of the BEST conversations with my favorite folks happen out here. I really love having the opportunity to interact with insurance salespeople. And let's just say that since February before last, I'm not seeing a whole lotta salespeople face-to-face! #CovidProbs Anyhow, participating in social networks and platforms like LI really help me to see what challenges all of you are facing; what product solutions are valuable/not. In short, it really helps me to empathize with all of you! sjm

 

[Sheryl J Moore]

@Lewis_FL - is this Lewis Wilcox?!? My buddy from Western Reserve Life?!? If you say "yes," it will make my entire MONTH!! sjm

 

[Sheryl J Moore]

@ATM after two C-sections, my OB told me that if I got pregnant again, I would die. So, I got my tubes tied. Then, I met my second husband, and had a decade of failed in vitro attempts. Two days after I buried my (only) son, who had taken his life through suicide, I found out that I was pregnant. When the baby boy was delivered, my OB again told me that if I got pregnant, I would surely die. When I went into menopause a couple of months later, I forgot to worry about the good doctor's warning. Three years later, after my child-bearing abilities had been happily whisked-away, I found-out that I was half-way through a pregnancy with another little boy. Thereafter, I convinced my husband to get a vasectomy. One might say that that vasectomy was the BEST investment that I ever made! Point being- the perception of "investment" is different from one person to another. That said, insurance regulators' perception is that investments are products where the purchasers can lose money as a result of the market's performance. So, let's just not call indexed life an investment. It will make everyone happy. (Bonus: your clients and prospects won't walk away with the mistaken impression that they have the ability for unlimited gains with the indexed life product that you are discussing either! #WinWin) sjm

 

[marindependent]

insurance is not an investment...

100% True

 

[Lewis_FL]

@Lewis_FL - is this Lewis Wilcox?!? My buddy from Western Reserve Life?!? If you say "yes," it will make my entire MONTH!! sjm

Yes. Hi Sheryl! Those were fun times huh? Congrats on your business.

 

[ATM]

Yes, a general definition could be seen that way. However, there are also sometimes legal & regulatory definitions that restrict salespeople from using words & phrases in their sales presentation or what they label themselves to consumers. I think one such regulation in the US is the investment act of 1940 that prohibits life insurance as being sold as an investment

I doubt the Investment Company Act prohibits it since the Act doesn't deal with insurance or individual investments.

I believe it is an insurance industry regulatory requirement to not market life insurance as an "investment" because they want o avoid being regulated as issuers of 'investments".

But in the strict definition of an investment it should be obvious that life insurance is purchased with the hopes of returning more money than one has payed for it.