Is the Transamerica IUL bad?

[Ghost]

Ok, I will talk about airline stocks now. Will that make me Warren Buffet? Don't blindly repeat your master's words. I did read all your comments and I don't believe you truly offered a term option. You must have said that term will run out but IUL is permanent or something like that.

Oh, I forgot to mention: I just delivered a term policy.

 

[Ghost]

This is what I was talking about! That poor client of your's needs a million dollar 20 or 30 year term. It protects his kids till they graduate and settle down in life. He can easily get the 20 year term for 100 bucks and the rest should go to his Roth ira but what did you do? With your half baked knowledge you put in an IUL which even Mr.DHK admits that noone understands. Not just Transamerica but every company's IUL is bad. Every IUL is bad. I quickly ran the numbers on the Allianz IUL. 250k DB easily takes $550 a month to be well funded but you grossly underfunded it. He probably said that's all he could afford and he wanted his mortgage paid off in case something happened to him and that's how you designed it. He said he was worried about his mortgage and you heard it as your mortgage. ha!

If that IUL performs this badly now, wait till the carrier drops the caps or adjusts the expenses. Before the client catches on, go do the right thing for him. Couldn't resist this one but that's it. Cheerio!

I just finished reading the bunch of assumptions you made... at the time he was RENTING an apartment in California, he moved to Colorado a few months ago.

 

[phoenixlord]

I just finished reading the bunch of assumptions you made... at the time he was RENTING an apartment in California, he moved to Colorado a few months ago.

Sorry, didn't mean to accuse or attack you. I am sure you were trying to be ethical. I was just continuing my previous posts where I was expressing my displeasure at the way IULs were being thrown around by inexperienced agents and how dangerous the situation is becoming. The way you have designed his IUL, it's nothing but a very expensive return of premium term policy. It's actually worse because the return of premium and the term it lasts is not even guaranteed. Just curious, what were you thinking? Will it provide protection for 20 or 30 years and then, if he is lucky to not use it, will it provide a secure retirement? All for $290 a month?

 

[Ghost]

Sorry, didn't mean to accuse or attack you. I am sure you were trying to be ethical. I was just continuing my previous posts where I was expressing my displeasure at the way IULs were being thrown around by inexperienced agents and how dangerous the situation is becoming. The way you have designed his IUL, it's nothing but a very expensive return of premium term policy. It's actually worse because the return of premium and the term it lasts is not even guaranteed. Just curious, what were you thinking? Will it provide protection for 20 or 30 years and then, if he is lucky to not use it, will it provide a secure retirement? All for $290 a month?

I was able to fix his policy, since the initial one was badly written. I increased his coverage also, plus the kids have a policy each with already $1,200 in each one. I don't think it was a horrendous job I did, considering his cash value doubled with me in a few years compared to the other years he had the policy with the other agent.

Here are details on that policy that I have from looking at the Statment.

I'm open to criticism since we all look for ways to improve as agents:

ISSUED ON 09/22/2017

Monthly: $290.00
Premium paid anniversary to date: $2030.00
Total premium issued to date (I did the 1035, I wasn't the original writing agent): $13,281.51
1035 amount: $4,581.51

Monthly No Lapse Premium: $218.33
7- Pay Premium: $10,250.70

Cost of Insurance & Admin Charges to Date: $1045.80
Index Acct Monthly Charge: $49.59

Financial Values as of 06/11:

Cash Value: $9,528.65
Surrender Value: $3,106.15

 

[phoenixlord]

Total premium issued to date (I did the 1035, I wasn't the original writing agent): $13,281.51
1035 amount: $4,581.51

So, when you did a 1035, your client lost $8700 of his cash value ($13,281.51 - $4581.51). Am I right? You did this because you designed it better than the previous agent and in the future he will have more cash value than his previous policy?
Can I go in now? Because, I can beat your design easily. He will again lose some cash value when he does 1035. Is this ethical?

 

[Ghost]

So, when you did a 1035, your client lost $8700 of his cash value ($13,281.51 - $4581.51). Am I right? You did this because you designed it better than the previous agent and in the future he will have more cash value than his previous policy?
Can I go in now? Because, I can beat your design easily. He will again lose some cash value when he does 1035. Is this ethical?

No, Premium is what he paid, which is that total. He's only had the policy with me for a couple of years. He had the previous policy for a while and he made the same amount with me in less time, how is that unethical?

Please, go ahead and create an illustration.

 

[phoenixlord]

No, Premium is what he paid, which is that total. He's only had the policy with me for a couple of years. He had the previous policy for a while and he made the same amount with me in less time, how is that unethical?

Please, go ahead and create an illustration.

How much cash value got transferred to the new policy from his old policy? Can't be all of it. Some will be lost due to the surrender fee. How much was lost?

 

[Ghost]

How much cash value got transferred to the new policy from his old policy? Can't be all of it. Some will be lost due to the surrender fee. How much was lost?

From what I recall, he was out of the Surrender.

 

[phoenixlord]

From what I recall, he was out of the Surrender.

You replaced a 15 year old policy?

Couldn't you have reduced the death benefit to increase the performance? Wait! that won't get you any commissions.

That old a policy would have been done with some fees like wtf fees and probably would have bonus interest. You replaced it and started the fees all over.

 

[Ghost]

You replaced a 15 year old policy?

Couldn't you have reduced the death benefit to increase the performance? Wait! that won't get you any commissions.

That old a policy would have been done with some fees like wtf fees and probably would have bonus interest. You replaced it and started the fees all over.

I actually increased his DB so he can also get policies and put more money towards the kids future. You're making it seem like I did a horrendous job, you've been attacking me since your original post.

Again, I WASN'T THE ORIGINAL AGENT ON THE POLICY. He was doing $210 a month with a minimum of $190, and only saved $4,500 in all those years. He saved almost the same amount doing a 1035 with me. His 2 kids have $1,200 each. And I met with him 3 times, so no, it wasn't a 1 hour appointment either. I tried doing what was best, I know that every person will have a different opinion of what should've been done.

And I'm waiting on your illustration.