IUL Presentation Needed ?

[Allen Trent]

DHK.. I know you are a smart respectable individual. I sincerely believe that and enjoy reading all your post/comments, but In my opinion, you shouldn't be able to sell these products to clients who are not 100% aware of what exactly they're buying as well as where they "excess premium" is being allocated to. It's our job to know and teach the mechanics and how the policy works to the client before getting their approval.

Honestly, people need to take the time to read and realize what they are signing

While i agree in theory to your premise, If this was the case, no one could ever buy a home or a car or be able to take out loan, they couldnt sign up for a cell phone or cable TV. The contracts are written by lawyers to comply with regulations. They couldnt buy the car repairs needed on their car unless they studied how a car engine or components worked to understand how the repairs might help their car run better.

 

[Tahoe Ray]

Yeah, I don't think they are. I'm just curious why jerryrut does.

I'm going to guess a bad personal experience and/or a lack of understanding of how the products work.

 

[DHK]

Or just a cursory reading of latest headlines:

Two More Lawsuits Filed Against AXA For Cost of Insurance Increases

Transamerica sued for cost increases on universal life insurance contracts

And even a new law in California:
Commissioner-sponsored life insurance bill signed by Governor to protect California consumers

But if one doesn't dive deeper into WHY these things are happening, you end up believing that they're ALL bad - just like Primerica believes that ALL permanent life is bad.

 

[InsuranceIsLife]

Yeah, I don't think they are. I'm just curious why jerryrut does.

Agreed 100%. I can't tell if jerryrut is that ignorant or is being a troll.

 

[InsuranceIsLife]

20 and 30 year term policies really didnt exist back in the 1980s, so some UL were funded to only provide coverage to age 60 or 70 even when they were projected at 10-12%. while some carriers have raised COI, i am aware of others that lowered the COI when mortality improved in the 90s & 2000s.

the company I work with lowered COI on inforce policies & has allowed UL clients for the last decade to convert their UL without Underwriting to either a Reduced Paid up policy or a premium paying WL policy. none of which were contractual obligations.

Same with me. I inherited a lot of old Jefferson Pilot UL policies (now Lincoln Financial) and although most have had a COI increase, there were also a number of COI decreases on those policies.

 

[jdumond]

Yeah, I don't think they are. I'm just curious why jerryrut does.

He is trolling

 

[jerryrut]

Agreed 100%. I can't tell if jerryrut is that ignorant or is being a troll.

I’m ignorant about many things but I’ve been in the insurance biz for 30 years as well as a CPA for over 40; one thing I know as well as anybody in the insurance biz is the numbers; they don’t work for the consumer but works great for companies and agents who don’t have enough sense to do the analysis; they are scams and the next wave of huge lawsuits will prove it; keep selling it and keep your E&O current; also, thanks for creating inventory for agents who do understand it.

 

[dbab]

I’m ignorant about many things but I’ve been in the insurance biz for 30 years as well as a CPA for over 40; one thing I know as well as anybody in the insurance biz is the numbers; they don’t work for the consumer but works great for companies and agents who don’t have enough sense to do the analysis; they are scams and the next wave of huge lawsuits will prove it; keep selling it and keep your E&O current; also, thanks for creating inventory for agents who do understand it.

Can you give an example of the numbers? Or link to a resource that shows how the numbers don't work? I'm specifically talking about IULs. I'm new to the insurance industry so I'm trying to learn as much as possible.

 

[InsuranceIsLife]

I’m ignorant about many things but I’ve been in the insurance biz for 30 years as well as a CPA for over 40; one thing I know as well as anybody in the insurance biz is the numbers; they don’t work for the consumer but works great for companies and agents who don’t have enough sense to do the analysis; they are scams and the next wave of huge lawsuits will prove it; keep selling it and keep your E&O current; also, thanks for creating inventory for agents who do understand it.

Keep telling yourself that Mr. CPA. I'll gladly mark out personal client info to show you the original IUL illustrations to prove on most occasions have actually surpassed the current assumption on their IUL illustration. I illustrate converatively around 6.00% instead of an outlandish number and my clients have been very happy and obviously things could change, but that's why I use products with built in guarantees and explain any risk associated and conduct annual reviews.

And if that's the same philosophy you have on Fixed Indexed Annuities, I'm sorry, but if my client getting credited over 13% in a single year, with NO RISK is a scam, then I'll gladly continue "scamming."

 

[DHK]

I’m ignorant about many things but I’ve been in the insurance biz for 30 years as well as a CPA for over 40; one thing I know as well as anybody in the insurance biz is the numbers; they don’t work for the consumer but works great for companies and agents who don’t have enough sense to do the analysis; they are scams and the next wave of huge lawsuits will prove it; keep selling it and keep your E&O current; also, thanks for creating inventory for agents who do understand it.

Which numbers are you referring to? You provide generalities, but no specifics.

Show me a max-funded IUL and why it "won't work for the consumer". Not a minimum-funded one (unless it's for non-lapse GUL coverage).

Exactly WHY would it be a ripoff to the consumer... and compared to what?