iul daily averaging or 1 year monthly average

Dec 19, 2007

  1. flinsuranceguy
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    flinsuranceguy New Member

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    For those who sell iul policies. which premium strategy is better 1) daily averaging or 2) 1 year monthly averaging and why?
     
  2. Mr. Bill
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    Mr. Bill Guru

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    Annual point to point is the ONLY strategy where the client will not question why he earned "less than market performance" with his investment. Every other alternative, while it may outperform, also risks that lovely conversation.
     
    Mr. Bill, Dec 20, 2007
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  3. pbar
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    pbar Expert

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    Client will earn less than market performance? Why? because of policy expenses?

    How much will be policy expenses percentage wise, to the index credit?

    How many years will this be?
     
    pbar, May 25, 2015
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  4. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    Yearly Point to Point is almost ALWAYS the best option on an IUL. Monthly average is usually less than the Yp2p. Daily average is usually less than monthly average. Participation rates with a spread can be a good one to mix in with the Yp2p.
     
    scagnt83, May 25, 2015
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  5. Tahoe Ray
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    Tahoe Ray Guru

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    I like when points like this stand the test of time.....
     
  6. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    I cant tell if thats sarcasm or you being serious:1rolleyes: remember we are talking about IUL and not IAs... there is a difference...
     
    scagnt83, May 26, 2015
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  7. Tahoe Ray
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    Tahoe Ray Guru

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    Being serious.
     
  8. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    Gotcha.

    With the very high caps on IUL there is no reason IMO to use any other method.
     
    scagnt83, May 26, 2015
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  9. Tahoe Ray
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    Tahoe Ray Guru

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    I agree...if all things were equal in the FIA world (caps/spreads/participation), annp2p would be the default there too.
     
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