IUL with 16% Cap Rate?

[Marko4155]

I'm age 29 and want to put away $50,000 per year into an IUL. I believe there is a company or two that have a product with a 16% cap rate. Are these the companies, or are there any others?

Minnesota Life (Securian)
Allianz Life Pro+

Are one of these 16% cap rate policies the best option for me if my goal is cash growth for retirement? I don't care for the death benefit.

 

[Rollem]

alot of smoke and mirrors w/ these - dont forget to factor the cost of insurance and policy loan rates

 

[lprobin]

And the fact that the cap can change.

 

[scagnt83]

Its not all about the highest Cap.

The Loan Provisions are much more important.

As long as the Cap is above 11%-12% then worry about the Loan rate, not the Caps.

North American has the highest performing IUL at the moment.
If you would like an illustration just let me know.

 

[LaunaLeigh]

I'm age 29 and want to put away $50,000 per year into an IUL. I believe there is a company or two that have a product with a 16% cap rate. Are these the companies, or are there any others?

Minnesota Life (Securian)
Allianz Life Pro+

Are one of these 16% cap rate policies the best option for me if my goal is cash growth for retirement? I don't care for the death benefit.

Another really good company to go with for an IUL is Western Reserve Life. They have a cap at 13.5 percent, but the average growth has been 10.25 percent, and the numbers are phenomenal. If you are interested in learning a bit more about wrl, or the policies we offer, feel free to ask me any questions, either here, or directly.

Launa da Roza
License#: 0I56757
[email protected]

 

[Marko4155]

Its not all about the highest Cap.

The Loan Provisions are much more important.

As long as the Cap is above 11%-12% then worry about the Loan rate, not the Caps.

North American has the highest performing IUL at the moment.
If you would like an illustration just let me know.

Why not have both? There are policies with a 16% cap and a 5.3% (fixed) loan rate. Is that something you can beat? If so, I'd be happy to view an illustration.

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Anyone know the current cap rate for Allianz?

 

[AnonymousOne]

Are one of these 16% cap rate policies the best option for me if my goal is cash growth for retirement? I don't care for the death benefit.

Probably not or absolutely not, somewhere in between.

 

[scagnt83]

Why not have both? There are policies with a 16% cap and a 5.3% (fixed) loan rate. Is that something you can beat? If so, I'd be happy to view an illustration.

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Anyone know the current cap rate for Allianz?

Allianz has multiple Cap Rates at the moment depending on the Index chosen.

The blended option gives a 16% Yearly Cap with a 0% floor.



But there is another part of the equation. And that is expenses.
Allianz has a higher Premium Load, longer/higher admin charge, higher Policy Expense charge.


The only real way to compare the two is to run an Allianz illustration at the rate you think it will perform.
Then using the same premium run a North American illustration at the rate you think it will perform.
Then compare.
The most important thing to compare are the distributions.

Allianz has a competitive Loan Rate. But when I have compared the two in the past NA wins because of the lower expenses. Of course things get updated and can change, just speaking from past experience.


Also, over the past 15 years, there is only about a 0.6% difference in a 16% Yearly Cap vs. a 13.5% Yearly Cap.

On a historical basis there is only about 0.5%-1% difference.

Once you get over the 13% & 14% Cap range the difference in historical return diminishes since the market rarely reaches those levels on any type of a consistent basis.

 

[mmdz33018]

Are all the participation rates the same for these companies? Just thought it was something worth noting.

 

[scagnt83]

Are all the participation rates the same for these companies? Just thought it was something worth noting.

For the options mentioned they are all 100% guaranteed.

Not many IULs that use a participation rate in combination with a Cap, its usually either or.