NLG Lawsuit

[scagnt83]

You stated what the actual problem was (and usually is). IULs aren't the problem. Them being funded improperly is. Agents/Brokers need to know how to ensure that they're properly funded and educate and coach clients towards that end.

To an extent, yes.

But agents have no control over the bait and switch tactics IUL carriers have used with Caps and Participation Rates.

Every few years they release a new product and stop new sales on the old product. And immediately drop Caps and Participation Rates on the old product.

They used to blame it on the decreasing rate environment.
Now its being laid bare for what it really is. Teaser rates.

And we are just now getting into IULs increasing internal fees. Just wait until that hits the fan.

IUL is an inherently risky product, because the carrier is able to reduce your gains whenever they want to.

People blame the whole UL rate fiasco of the 80s/90s on a decreasing rate environment. But many of those policies were taken down to the minimum guaranteed rate, simply because they were allowed to do so.