National Life Group-COI Doesnt Increase?? How Good?

May 24, 2016

  1. Bigsal22

    Bigsal22 New Member

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    I have been told by my upline that NLG has the greatest IUL since sliced bread-really they use LSW-but my real question is-a stable cost of insurance?
    I was told that the COI will never increase, so there is always a large amount of the premium to go to the cash value.
    How is this possible? As the client ages would't the cost increase to match the chances of death?
    I was also told that eventually the Client would accumulate enough cash value in the account that they could self insure and the COI would go away?
    Can anyone clarify?
    I am extremely new to the industry but, know that insurance is going to be my career going forward. Thanks in advance for any help.
    Bigsal22, May 24, 2016
  2. gerano

    gerano Expert

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    Your upline? Do you think they might be adversely motivated?

    I like National Life for its dividend participating whole life plans but it's been my experience that LSW does not have a competitive UL nor IUL product. Even if they had a UL or IUL product it would be constructed on an annually increasing term life plan with added fees and expenses. I doubt that any company would ever devise a UL or IUL product with a flat internal term rate. Such a product would have to take the internal term rate for the purchase age and then take the internal term rate for Age 100 (or the anticipated age of death) and then average the two rates to come up with a fixed flat rate. That would be very unattractive both for the insured and the insurance company. UL and IUL are an indeterminate term product. I would question or doubt anything else told to you by your upline. Forward me a sample policy of this product and I will tell you the mechanics behind this product. I'm not a recruiter, I just believe in the truth and I would never deceive a client for the benefit of a commission.
    gerano, May 24, 2016
  3. BYSFG

    BYSFG Super Genius

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    Run the illustration and have it show expenses. It is under the reports tab I believe.

    The few products I do write with them (IUL), the COI definitely increases.

    COI is always there, do you mean premium payments? You can also set it to illustrate this. Is it doable, yes. Really depends on how it is structure. Such as, is the client max funding it? Is it min. DB?

    I wouldn't really recommend the client not paying the premium. Then again, its on a case by case basis.
    BYSFG, May 24, 2016
  4. pfg1

    pfg1 Guru

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    They have a nice product with real good living benefits. But yes, the coi goes up as it does in all those type policies regardless of carrier. Maybe he's mis communicating something to you, or not explaining properly what he's trying to get across. ??

    As long as you max fund, they should perform well - as many other IUL's will.
    pfg1, May 24, 2016
  5. aclaro

    aclaro Super Genius

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    It's a reference to net amount at risk. They base their coi on net amount at risk as do a lot of other companies. In theory, if there is enough cash value in the policy the net amount at risk could theoretically go to 0. It's tunnel vision. There are other expenses.
    aclaro, May 25, 2016
  6. scagnt83

    scagnt83 Worldwide Expert of Everything

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    South Carolina
    They might be saying that the COI schedule is Guaranteed and there is not a separate "Current" and "Guaranteed' COI schedule.

    ALL UL/IUL/VUL/GUL has an increasing COI. If it was a level COI it would be WL.

    There are also other expenses. Ask what the Premium Load is and how long it lasts... lol
    scagnt83, May 25, 2016
  7. HGIMax

    HGIMax Expert

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    The COI in IUL always increases. When selling option A, the underlying term insurance acts like decreasing term, option b functions like level term (simply stated, that is).

    It is also important to note that most IULs have current and guaranteed (aka Maximum) cost of insurance rates, meaning that the insurance company reserves the right to increase the rates due to natural disaster, plague, etc...

    COI going away? Huh? Yeah, only upon death.
    HGIMax, Feb 16, 2017