Something like that. You have to over fund an IUL, if you want to use it the way you would a Whole Life contract, however the loan does not automatically decrease the DB like in a Whole Life contract.
The percentage pages in the full illustrations are great. The ING one, especially. ING takes 75% of the highest, 25% of the next and throws out the lowest rate. I believe last year they averaged a 9.54% rate. Pretty impressive.
In comparing an IUL to a UL - what is the purpose of the insurance? As mentioned in the thread, the cost of insurance is higher on an IUL, so if you are looking to pay a low annual premium and get a guaranteed DB, an IUL is not for you. However, if you want tax-free cash accumulation and are willing to overfund the policy, you can use an IUL as a great tool for college education.
I believe an IUL is good. If used properly AND the insured understands what needs to be done to have the policy work as planned. As also mentioned, a Whole Life is what it is and you leave it alone, an IUL you can't really leave alone. As also mentioned, it can be quite tricky to explain to clients. Some get it right away, but others can view it similarly to a variable product, or lump it in as a product based on the economy and don't want to take that risk.
My personal opinion, insurance and investing should be kept separate. A good investment person should be able to take the difference in premium between an IUL or Whole Life contract and a UL and conservatively, be able to achieve the same goals, without any risk to the client's death benefit.
The percentage pages in the full illustrations are great. The ING one, especially. ING takes 75% of the highest, 25% of the next and throws out the lowest rate. I believe last year they averaged a 9.54% rate. Pretty impressive.
In comparing an IUL to a UL - what is the purpose of the insurance? As mentioned in the thread, the cost of insurance is higher on an IUL, so if you are looking to pay a low annual premium and get a guaranteed DB, an IUL is not for you. However, if you want tax-free cash accumulation and are willing to overfund the policy, you can use an IUL as a great tool for college education.
I believe an IUL is good. If used properly AND the insured understands what needs to be done to have the policy work as planned. As also mentioned, a Whole Life is what it is and you leave it alone, an IUL you can't really leave alone. As also mentioned, it can be quite tricky to explain to clients. Some get it right away, but others can view it similarly to a variable product, or lump it in as a product based on the economy and don't want to take that risk.
My personal opinion, insurance and investing should be kept separate. A good investment person should be able to take the difference in premium between an IUL or Whole Life contract and a UL and conservatively, be able to achieve the same goals, without any risk to the client's death benefit.
