IUL Vs WL

The #1 reason not to SELL Equity Indexed Universal Life... is that you're a lazy agent unwilling to service what you've sold.

Permanent life insurance - whether it's WL, UL, IUL, or even VUL... is most successfully sold and maintained when in partnership with a dedicated agent who will review the policy's performance on a regular basis.

Without such service, is one reason why policies lapse and consumers have the impression of life insurance agents that they do.
 
Unfortunately Nelson Nash knows next to nothing about UL. He is even out of touch with the WL market... when I heard him speak he was talking up State Farm WL... and we all know what a wonderful product that is... of course in the guys defense he is like 90 years old...

I could pick apart his top 10 list but its so wrong it isnt worth the effort.

He also fails to mention how UL/IUL is able to use GPT which allows most of the gains to go towards CV, and not the DB. Which makes it much more efficient for accessing CV.
 
Unfortunately Nelson Nash knows next to nothing about UL. He is even out of touch with the WL market... when I heard him speak he was talking up State Farm WL... and we all know what a wonderful product that is... of course in the guys defense he is like 90 years old...

I could pick apart his top 10 list but its so wrong it isnt worth the effort.

He also fails to mention how UL/IUL is able to use GPT which allows most of the gains to go towards CV, and not the DB. Which makes it much more efficient for accessing CV.

What is GPT?........,,,
 
Actually... The article was written by Todd Langford who sells Truth Concepts software.

Well it was featured on Nash's site so I was an as# and assumed... lol.

Not much truth there from someone who sells something with "truth" in the name... lol.

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What is GPT?........,,,

As Ray said, it is Guideline Premium Test.

There are two types of "tests" that a policy may use to see if it qualifies as a life insurance contract.
Guidline Premium Test (GPT)
Cash Value Accumulation Test (CVAT)

You will see this choice on your UL illustration software but not on WL. WL uses CVAT.


A better term for the "test" is adjustment.
With CVAT, it compares the Cash Value, to the Death Benefit. When the ratio becomes too close, it automatically raises the DB to keep it in line. It uses dividends to do this.

With GPT, when the CV ratio becomes too much, it limits premium instead of raising DB.

You can use the illustration software to make sure the planned premiums are not limited by the GPT test.
If you use an increasing DB on the policy, that will allow for maximum premiums under GPT.
Once premiums are stopped, you can change the DB option to Level, and the majority of yearly gains are then used for CV. Also at that point, the CV is able to reach a very high % of the DB. Much higher than a WL ever could.
 
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Also at that point, the CV is able to reach a very high % of the DB. Much higher than a WL ever could.

Translation: Lower net amount at risk

Secondary translation: Lower Cost of Insurance
 
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