phoenixlord
Expert
- 55
I was sidetracked by couple of people attacking me in the other post. This is a public forum and I will post my point of view on these horrible IULs.
There are two kinds of clients.
1. Clients looking for insurance (Investment portion paying for it): Be it 10 year term, 30 year or even permanent. After 10 years, they feel like they are throwing away their money on this. For them, return of premium or cash value life insurance(WL) maybe appropriate. The goal is that the investment portion should pay for their insurance portion. It should not jeopardize the insurance portion and lapse it. That's what IUL does. NEVER SELL IUL to people seeking insurance. Regardless of what few unethical agents say there is no insurance guarantee in IULs.
2. Clients looking for an investment (Insurance portion giving tax benefits): Even for these people WL is better, NOT IUL. But it's ok to pitch IULs for these clients as long as you explain the cap risk, expense risk, participation risk and premium load, admin fee, other fee, misc fee and more importantly, wtf fee. Be sure to point out that caps can be reduced to just 1% and they can't take out cash for 15 years due to surrender fee.They will be locked in and fleeced. Even after that, they want to buy this crap because their friends bought it or something, design it with option B, min face value with 10 to 15 years of premium they can afford, offering to be there after 15 years to make adjustments like switching to option A and other things. It's not unethical to sell IUL to these kind of clients and in this fashion but it's a sin to sell IUL to type 1 clients.
Be ethical, don't be one of the few bad apples. You get a warm feeling when clients call you 20 years later and tell you how happy they are with the product you sold them. If you want money, take a second job, don't scr*w some poor guy to make few $$ of commissions. Ta Ta! Cheerio!
There are two kinds of clients.
1. Clients looking for insurance (Investment portion paying for it): Be it 10 year term, 30 year or even permanent. After 10 years, they feel like they are throwing away their money on this. For them, return of premium or cash value life insurance(WL) maybe appropriate. The goal is that the investment portion should pay for their insurance portion. It should not jeopardize the insurance portion and lapse it. That's what IUL does. NEVER SELL IUL to people seeking insurance. Regardless of what few unethical agents say there is no insurance guarantee in IULs.
2. Clients looking for an investment (Insurance portion giving tax benefits): Even for these people WL is better, NOT IUL. But it's ok to pitch IULs for these clients as long as you explain the cap risk, expense risk, participation risk and premium load, admin fee, other fee, misc fee and more importantly, wtf fee. Be sure to point out that caps can be reduced to just 1% and they can't take out cash for 15 years due to surrender fee.They will be locked in and fleeced. Even after that, they want to buy this crap because their friends bought it or something, design it with option B, min face value with 10 to 15 years of premium they can afford, offering to be there after 15 years to make adjustments like switching to option A and other things. It's not unethical to sell IUL to these kind of clients and in this fashion but it's a sin to sell IUL to type 1 clients.
Be ethical, don't be one of the few bad apples. You get a warm feeling when clients call you 20 years later and tell you how happy they are with the product you sold them. If you want money, take a second job, don't scr*w some poor guy to make few $$ of commissions. Ta Ta! Cheerio!
