Need IUL recommendation for income - New York - $300K premium

May 25, 2019

  1. SParker
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    SParker Expert

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    Hi All,

    Can someone recommend a competitive IUL carrier or policy for New York resident?

    Male, 55 years old
    Goal - maximize lifetime income with possibiliy of some DB to surviving spouse.
    Premium - total cash available for premium = $300K ,
    Funding - can fund the entire $300K in one payment or spread it out depending on which scenario generates the most lifetime income.

    Want to see how IUL compares with Deferred Lifetime Income annuities using the same $300K.

    Appreciate any feedback or advice.
     
    SParker, May 25, 2019
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  2. jdumond
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    jdumond New Member

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    Nationwide, LFG....seemed to be the most competitive on the comparisons I ran. (I didn't spend much time optimizing but should give you a decent idea.)
    Sample.PNG
     
    jdumond, May 28, 2019
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  3. SParker
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    @jdumond

    Thanks! Do you think if the distribution numbers will go a lot higher if we use increasing DB as opposed to level DB as in your illustration?

    Curious if it is normal to have such a wide range in distribution income from carrier to carrier, from a high of $19,985 (LFG) to a low of $7137 (AG).
     
    SParker, May 28, 2019
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  4. SParker
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    BTW, I should have added to my original post - not looking for distribution until 20 years later or age 75.

    If anyone knows of any solid IUL carriers in New York, please let me know or show me an illustration if possible. Thanks.
     
    SParker, May 28, 2019
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  5. celiothrkn
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    celiothrkn New Member

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    You will want to run the illustration as an "Increasing DB" with the starting DB value as "Minimum Non-MEC". Your client will have less DB in the initial years, but be able to generate more cash value for supplemental retirement income in their golden years. The only catch is that, depending on the carrier, you - as the agent - may need to remember to call the carrier in the 5th or 6th year to "level" the DB.

    Since your client has a bucket of $300K, one important factor in choosing a carrier that I would recommend looking for is someone who offers a Premium Deposit Fund. That means your client can write one check for $300K today but only have a portion go into the policy per year, while generating interest. As a hypothetical example, $50K will be transferred into the IUL over the course of 6 years, and the remaining funds that aren't put in yet will generate X% interest with a 1099 going to the client annually (in the same way as if he'd had opened a bank savings account).

    I can't say for certain if these carriers do business in New York, but my two personal favorite IUL carriers are Penn Mutual and North American/Midland National. One perk with the latter is that, if you use the ROP DB option, then you don't even need to "remember" to call in to level the DB.

    From what I can see, either of these carriers should be able to produce much more income than the LFG or Nationwide examples above. But maybe I'm operating on different assumptions.
     
    Last edited: May 28, 2019
  6. jdumond
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    jdumond New Member

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    These products should all be available in NY. I do not think North American/Midland sell in NY but I am not sure.

    This snapshot is slightly more optimized...increasing DB, Reduce face to max income, switch @ basis. You could do 100% par loans and maybe get a few extra bucks... Sample.PNG
     
    jdumond, May 28, 2019
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  7. SParker
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    SParker, May 28, 2019
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