IUL with Lifetime Income?

[briko3]

They seem to have a growing IMO presence. So that is probably why he feels that way. I keep hearing more agents talk about them, but just do not see the appeal of the product. But for agents who dont know any better and who's IMO tells them its the best thing since sliced bread, they will be all over it.

I also heard their Targets are higher than average... I dont know that for a fact... but if true it could certainly play a large role in why their distribution has increased in the IMO channel.

I once had an IMO owner tell me that Aviva's IUL was the best thing out there and I was crazy not to sell it. After a more in depth conversation I found that the real reason he liked it was because it had a high target and he made the most money if I sold it over others. Of course now that Aviva policy would be an Athene policy... and that is exactly why I stay away from carriers that compete on comp and not product quality, especially for life insurance

I agree. Lincoln is a steak and potatoes company. You might not always get a lot of sizzle, but you know what you're getting without the gimmicks.

 

[DHK]

Athene is the old Aviva Annuity company while Accordia is the old Aviva Life company.

My only problems with Midland & North American (aside from the IUL contract structure)... is that they don't have disability waiver of premium/charges or a disability waiver of stipulated premium (cash contributions). This is a California only thing... but it sucks that California is screwing up with all the disability waivers with just about every company that wants to do business here.

 

[scagnt83]

Athene is the old Aviva Annuity company while Accordia is the old Aviva Life company.

Good catch. Ive been dealing with annuities all morning... I guess Im in that mind set... lol.

 

[pfg1]

Athene is the old Aviva Annuity company while Accordia is the old Aviva Life company.

That's what I thought. But a couple weeks ago a client I am working with got an inforce illustration on an Aviva IUL, and it came back as an Athene illustration. So I'm confused as to who is what now.

 

[scagnt83]

My only problems with Midland & North American (aside from the IUL contract structure)... is that they don't have disability waiver of premium/charges or a disability waiver of stipulated premium (cash contributions). This is a California only thing... but it sucks that California is screwing up with all the disability waivers with just about every company that wants to do business here.

If I remember correctly all NA offers at all on their IUL is a waiver of monthly deductions.

And I swear I once ran an NA illustration for a guy in CA and I put the waiver of deductions on it... I would double check if I were you.

 

[DHK]

It's a recent development - within the last month or two.

 

[just some f.e.llow]

Why don't you want to use LSW? Just curious.

Agree, the above mentioned companies are a good fit.

Interestingly I was at a conference 2 weeks ago and was talking to a Lincoln wholesaler who had a booth... he said based on what he see's, LSW was positioned to make a huge move in the IUL business. We didn't have a long conversation, but he felt like they were the biggest threat to Lincoln and the other major players. I found that kinda interesting, especially coming from him.

I know several folks that sell the heck out of LSW, and they love working with them, and especially like their living benefit riders.

LSW is a fine product, I suppose. Just want to look at other competitors products is all, really. I'm familiar with them, and want to see who else is competitive in this space.

 

[aclaro]

I've really like the way Minnesota Life has looked recently since they made a few changes. What are you guys' thoughts on their Eclipse product? (I'm not a big fan of the Omega Builder)

Also, I've seen a couple carriers that credit above 0 (1 or 2 percent) on down years. This seems like it could be a pretty big advantage?

 

[maxherr]

Understand that all the various "guarantees" in an IUL (or any other form of UL) are costly mechanisms for the insurance company which, in turn, inflates the COI necessary to support the contract. And, as you should know, the COI in any UL contract goes up EVERY YEAR, simply as a mortality issue. Other expenses, such as no lapse and other guarantees can cause the COI increase to exceed the mere mortality-based increase.

It's the insurance company's game, and they are not in business to lose money.

Income guarantees in annuities have already proven to be so costly in today's low interest rate environment that many companies have stopped offering them or greatly reduced the income they offer. There is no reason to believe that the actuaries will find anything different in the expense calculations for IULs than they have for IAs.

If you haven't heard about this, you aren't reading the right publications.

 

[BNTRS]

Understand that all the various "guarantees" in an IUL (or any other form of UL) are costly mechanisms for the insurance company which, in turn, inflates the COI necessary to support the contract. And, as you should know, the COI in any UL contract goes up EVERY YEAR, simply as a mortality issue. Other expenses, such as no lapse and other guarantees can cause the COI increase to exceed the mere mortality-based increase.

It's the insurance company's game, and they are not in business to lose money.

Income guarantees in annuities have already proven to be so costly in today's low interest rate environment that many companies have stopped offering them or greatly reduced the income they offer. There is no reason to believe that the actuaries will find anything different in the expense calculations for IULs than they have for IAs.

If you haven't heard about this, you aren't reading the right publications.

Except that 99% of the IUL products out there are not guaranteeing any degree of income. And since the NAAR doesn't change (when implemented correctly) or can even be reduced, the "rising cost of insurance" is pretty minor and not more significant than the assumed rising cost of insurance that goes into WL pricing. On top of this, most UL contracts are priced to collect all mortality expenses prior to the insured's age 100, meaning that there is a good amount of margin between assumed and experienced claims.