Looking for properly designed EIUL from NA

js44

Expert
81
I am looking for $3 DB EIUL, single premium or 3 to 5 pay max. Policy should last till 100. Can anyone post the premiums here please? thanks
 
policy should perform at 6% max, best if perform at 3% without classified as MEC.
 
What you want and what is possible are two different things.

A single pay is always a MEC unless it is extremely underfunded.

A 3pay is almost always a MEC unless extremely underfunded. And certainly would lapse at 3%... probably at 4% too.

A 5pay will not perform as well as a 7pay because of the internal limits and structure of the policy.

Midland is the exact same product and owned by the same company (Sammons Financial), except it performs better than NA. It performs better because internal costs are lower. Internal costs are lower because Midland contracts with agents directly and does not use a middle-man organization to contract agents (cost of the middle-man is put on the client).

Usually, Midland will be 0.5%-1% higher over the long run, assuming the same index crediting.

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You havent included your gender, age, or if you use tobacco. Those factors effect premiums greatly.

And if you have any health issues such as being overweight, blood preassure/cholesteral/ issues, diabetes or other chronic diseases, etc. That all effects premiums too.... there can be a 30% difference between the best health rating and a "standard" health rating.

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Are you an agent or a consumer?

Based on your screen-name, Im guessing you are 44?

A fully overfunded IUL that will not lapse at 3% or 4%, will cost over $130k per year for a $3m DB on a 44 year old male in good health.

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Keep in mind that for an IUL to perform well, you must have the minimum DB allowed for the Premium paid. The more you raise the DB (keeping with the same premium) the worse the performance gets.

For someone in their mid 40s, you will get around $200k in DB, for every $10k in premium.

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The DB does increase over time. So most people just supplement what they need with 30year Term or GUL.
 
A fully overfunded IUL that will not lapse at 3% or 4%, will cost over $130k per year for a $3m DB on a 44 year old male in good health.

Thanks for detailed answer. 130k per year for how many years?
 
"A fully overfunded IUL that will not lapse at 3% or 4%, will cost over $130k per year for a $3m DB on a 44 year old male in good health."

Thanks for detailed answer. 130k per year for how many years?

Your welcome.

7 years minimum if you want the best rate of return without making it a MEC. The maximum would be for however long you want to pay premiums.
 
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I thought these were a little on the higher side too. I was asking about preferred rating.
 
I thought these were a little on the higher side too. I was asking about preferred rating.

On the "high side" how?

You misunderstand the product and how to maximize the performance of it.



Policy performance is directly related to Death Benefit per dollar of Premium.

The more DB you have, the higher the internal expenses. Higher expenses lowers policy performance.



So if you want to maximize performance of your policy, you need the lowest DB possible for the premiums being paid.

Or to say it a different way, you need the highest possible premium (without making it a MEC) for the given DB.



This also is what makes the policy not lapse at low Credited Rates such as 3%-4%.

Higher internal expenses create lower policy performance, and makes the policy Lapse at higher credit rates. The better the performance, the lower the credited rate for it to Lapse.

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I could certainly run a Midland $3m IUL with a higher DB. But it would have a lower Rate of Return on Premiums. And it would Lapse at a higher Credit Rate.
 
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North American Guarantee Builder IUL4 is $94k for 5 years no-lapse to 120 (non-mec) at Pref. runs out of CV at 86 at 4% ROR. don't know if Midland has a similar product. by way of comparison Protective's no-lapse IUL is over $132k.
 

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