Key Ratios

Apr 17, 2018

  1. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    State:
    California
    7% dividend is not a policy rate of return. It's the divisible surplus of some number distributed to policy holders.
     
    DHK, Apr 18, 2018
    #11
  2. jboussea
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    jboussea Guru

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    I think you're thinking too hard about this.. at this point the products or what they are .. You either have to do it or don't .. or maybe reduce the amount you wanted to put in initially.. and certainly don't focus on the DB .. if you want more DB .. buy a cheap term ... a properly designed IUL or WL will have an increasing DB so by the time your term runs out in 20 years or so .. the DB will be much higher.

    If you have money in the market already .. that's your hedge for more returns.
     
  3. ATM
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    ATM Super Genius

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    State:
    Alabama
    Here is your error.

    If it illustrates better it illustrates better. That does NOT mean it has lower expenses.

    Case in point is PacLife's product (can't remember the exact name). It is the most expensive IUL product (or one of the top 2 or 3) but it illustrates very well because of how the non-guaranteed bonuses illustrate in a world of zero return volatility.

    Add real world volatility and those non-guaranteed bonuses do not add up like the illustration and actual policy performance will likely be much lower. If performance is lower than illustrated you can rest easy knowing you own the most expensive IUL available.
     
    ATM, Jun 5, 2018
    #13