- 8,707
Everything looks amazing on an illustration. Remember though, it only takes a single year to make your illustration worthless.
The real beauty of the IUL isn't the hypothetical good years of growth, it's the downside protection. You don't need to illustrate it damn near double digit growth to make it powerful. Hell, just show them how an indexed product would've performed during the the 2000s.
Instead of losing 30% in 2008 and 2009, you would have lost nothing.
To answer the question it is not that powerful. For some reason even though I set the clients date of birth as 11/01/1985 to make him 28 and it showed on the illustration age 28 it showed an insurance age of 0. Really strange as the illustration showed the premiums like I said of 75 per month from age 28 to 65 but it really was calculating from age 0. Initial death benefit is 40,095 with a projected cash value at 65 as $62,871.46.
My point though was a client can max fund a policy under 100k and it can still work. Obviously if the client has the funds for a larger policy he will typically benefit from decreased cost of insurance if healthy. As my illustration only allows for standard under a $250K death benefit.