IUL Illustration Interest Rates

Discussion in 'Indexed Universal Life Forum' started by aus0417, Jan 18, 2012.

  1. Larry Tew
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    Larry Tew Well-Known Member

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    I'll second that. If you just look at "cash at 65" you'll miss the real value. The preferred loan rate after 65 (or 10 years whichever is later) sets it apart based on the income stream it creates.
     
  2. aus0417
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    aus0417 Well-Known Member

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    Here are the case specifics:

    25 yo female, quoting Preferred NT

    Death benefit is less important, this is primarily going to be a long-term savings plan designed to accumulate CV. She says she can afford to comfortably save $500 per month but wants to see a proposal based upon $200 per month, and have the option to increase her savings amount later (her husband just got a new job and they want to make sure it's going to work out before getting "cash-strapped").

    They are likely to access some CV through loans in around 17 to 18 years (their 9 month old will be college age) but plan to pay the loan back and use the CV for supplemental retirement income @ 65.

    I have run (or had run for me ;) the following illustrations with $200 monthly premium all years and $500 monthly premium all years for Guardian L99. 1.) min face $100 PUA 2.) $1800 Base/$600 PUA 3.) $1200 Base/$1200 PUA.

    Surprisingly (to me anyway), 2 & 3 show almost identical DB and CSV @ 65, the only difference is 2 has a higher DB early on and 3 has higher cash early on.
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    this is something that gives me a little pause, especially when the guaranteed side of the IUL illustrations shows a lapse at age 80 or 90, what happens if they lower the caps and the policy lapses at 65 or 70? I'm going to look like an ass and feel like one. I think I've got one foot on the Par WL bandwagon now! ESPECIALLY in cases like this where the CSV is almost identical on the projected side but the guaranteed side is WAAAAAY better on the WL illustration...
     
    Last edited: Jan 21, 2012
  3. nguyen76
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    nguyen76 New Member

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    I have been read a lot of your posts and it seems like you have lots of knowledge about life insurance. is there any way can you send me you email so I can ask you some questions about LIs.
     
  4. jboussea
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    jboussea Well-Known Member

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    check out his website

    The Insurance Pro Blog


    don't think he's here much anymore
     

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