Is the Transamerica IUL bad?

[Ghost]

Good morning, I'm actually an agent with WFG. I'm not here to discuss about the business model and recruiting, I have a legitimate question: is the Transamerica IUL that we offer bad? I have 3 scenarios from a family I did policies with: a dad and his two small children.

When I sat down with him, he had a WRL (what is now Transamerica) policy that had $4,500 saved, he was contributing, I believe, $210 a month and the minimum no lapse was $190, very badly written. So we did a 1035 on it, I made him increase his premium to $290 a month with $250,000 in coverage and a minimum no lapse at 210. Since he got the policy with me, in about two years, his cash value doubled to $9,500.

He has two kids: a daughter that turned 4 on June 1st and a son who I believe is now 8 years old. The total premium contributed per child, since they started the policy on September of 2017 is $2,000 and in their cash value there's $1,200.

Can anybody explain to me what is wrong with this? With WFG I do have options with other companies through Crump, plus Pac and Nationwide.

Thanks

 

[DHK]

You left out age and health/underwriting.

How much additional term does he have? In my view, he's still grossly underinsured for total protection.

I bet you could still increase premiums up to the MEC guidelines and improve the performance of the policy.

That's not a company or policy issue.

That's an agent issue.

 

[Ghost]

You left out age and health/underwriting.

How much additional term does he have? In my view, he's still grossly underinsured for total protection.

I bet you could still increase premiums up to the MEC guidelines and improve the performance of the policy.

That's not a company or policy issue.

That's an agent issue.

I offered him to get a term policy, he didn't want it. I never place a term rider inside the IUL, I'd rather do them separately. The client is 47 at Non- Tobacco. And yes, I was actually gonna follow- up with him to advice him to start putting more money in to it if possible. The issue was how the policy was originally written up. What about the kids policies?

 

[Ghost]

So going back to my original question: why is Transamerica getting such bad press from advisors? I spoke to Roccy DeFrancesco after reading his book (not gonna talk about his condescending attitude) and he kept bashing the Transamerica IUL but giving me nothing substantial to compare, except for an illustration that he designed without a company logo on it.

 

[Lewis_FL]

Yes it is bad. Expenses are horrible. That's how they pay your up-line huge overrides.

 

[DHK]

Not sure how that rationale behind the expenses would pass by each state insurance regulator...

 

[marindependent]

If I could change the name of this forum I would from
Is the Transamerica IUL bad?
to
Is the Transamerica IUL bad relative to Other IULs?

 

[Ghost]

Yes it is bad. Expenses are horrible. That's how they pay your up-line huge overrides.

That's strange, the override my Broker is getting from me is 10%. Please explain to me how that fits in with the Target Premium and Expense charges compared to other IUL's.

 

[Ghost]

If I could change the name of this forum I would from
Is the Transamerica IUL bad?
to
Is the Transamerica IUL bad relative to Other IULs?

You're right, and it's the main question I want to focus on.

 

[Ghost]

Yes it is bad. Expenses are horrible. That's how they pay your up-line huge overrides.

Which Top 3 companies are the best for you, how much interest do they credit a client and how much do they charge a client on a loan?