Million Dollar Baby

[kgmom219]

This is a pretty normal pitch from a NYL, NWM, etc producer. Use an IUL/Whole Life instead of a 529 plan for the college fund. Its also part of LEAP. Does it work? Sure. But this is usually part of the Financial Planning arena.

There is a list of births available everywhere. The county would always have it. And I know you can buy it, that's why there are "raffles" in every baby store in the country...to create the list. But I have no idea where.

 

[Tahoe Ray]

Does anyone go after this market? The concept is to use an IUL on the baby. Approximately $100 per month when the baby is 1-6 ... $150 per month during years 7-13 ... $200 per month years 15-18 .... At that point, they'd be able to take $10,000-$15,000 per year for the next 4 years to help pay for college ... At age 30, the insured would be able to take approx $25,000 for a down payment on a home and at age 65 would have a tax free stream of income.

I don't know why you'd want to pursue these sales...if designed correctly, your avg commission will probably be about 30 bucks a month.

If you can use it to cross-sell the parents other products, then maybe but this doesn't sound like a profitable activity.

 

[jn8691mr]

I don't know why you'd want to pursue these sales...if designed correctly, your avg commission will probably be about 30 bucks a month. If you can use it to cross-sell the parents other products, then maybe but this doesn't sound like a profitable activity.

$100 per month X 80% for an IUL ... More like $67/mth as earned or $800 advanced

 

[Tahoe Ray]

$100 per month X 80% for an IUL ... More like $67/mth as earned or $800 advanced

Properly designed UL for this purpose will have a target close to 30% of the premium.

 

[jn8691mr]

Properly designed UL for this purpose will have a target close to 30% of the premium.

I'm told if I sold this at $100/mth first year premium, I'll get 80% of the $1200 advanced commissions

Can you elaborate? Why 30%?

 

[Tahoe Ray]

I'm told if I sold this at $100/mth first year premium, I'll get 80% of the $1200 advanced commissions

Can you elaborate? Why 30%?

IUL is paid on target commission, not premium (and is based on the DB).

When you max a policy for cash accumulation (for the purposes that you're describing here), you normally minimize the DB to max the cash. This drastically reduces the "target" comp.

You'll find a lot of IMOs that won't do this, and it is strictly comp related or because they don't know how to properly design an IUL for max accumulation.

This is not a profitable market.

 

[scagnt83]

 

[tlmarketing]

Carrier ran it at 6.9%

I think the only way this plan works is when your E&O policy contributes to it..

 

[jn8691mr]

I think the only way this plan works is when your E&O policy contributes to it..

You're basing this on?????

Robertjrussell ...kgmom ... Input????

 

[scagnt83]

You're basing this on?????

Robertjrussell ...kgmom ... Input????

It can be a perfectly fine way to save money for a child's future needs. There will always be people who do not like it and say it wont work. Most of them have not taken the time to actually compare a competitive policy that is properly designed to a 529 Plan. That is not the problem though...

If you want to sell it great. Learn how to first. Take CE classes, watch some webinars, RUN ILLUSTRATIONS YOURSELF over and over, or read the forum.... lots of info on there about this already... no need to start a new thread when you obviously have not taken the time to do research yourself first.

If you cant run the illustration yourself you have no business selling IUL. You will do more harm than good.

btw, $100/m will not even come close to paying for college in 18 years.... not even a single year of it.