NLG Lawsuit

IUL inforce Illustration?

Not to derail this. However, I have a question. Having gone through the UL issues of the 80s & 90s I have been leary of IUL.

Question- can IUL inforce Illustrations be ordered based on current and guaranteed assumptions? These specifically are Farmers.
 
WinoBlues said:
IUL inforce Illustration?

Not to derail this. However, I have a question. Having gone through the UL issues of the 80s & 90s I have been leary of IUL.

Question- can IUL inforce Illustrations be ordered based on current and guaranteed assumptions? These specifically are Farmers.
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Depends on the carrier. Some have that ability, some dont.
 
I believe Farmers require their own agent to deliver the inforce illustration. Very slick way to keep the other replacing agent out the door. Prepare the client first before calling Farmers.
 
walthamny said:
I believe Farmers require their own agent to deliver the inforce illustration. Very slick way to keep the other replacing agent out the door. Prepare the client first before calling Farmers.
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That is my understanding also. They also tell the client they are not allowed to print the information.

Kinda of a confaluted(sp) mess in that I have maybe 9-12 different life plans in the extended family. The Farmers agent has their business and P&C coverages. He writes a lot of Farmer's Life. Or is it still New World? He has also referred me to a dozen plus Life clients including his family members. Not this family which was a sub agent's client.
 
There are a few different carriers that will send inforce illustrations to the agent and not directly to the client.

However, if the client asks customer service to send it directly to their email address, by law, they have to in most states.
 
Allen Trent said:
Normally agree with this thought process. But seeing some young parents that make $50k per year spend $5,000 a year on an IUL when they dont have emergency fund nor 401k because the IUL was sold at minimum funding for commissions because it was "tax free, max borrow, pay for nursing home bills, plus, plus, plus", some of these lawsuits are warranted for the sale practices of producers & uplines even if the product design wasnt inherently bad
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THIS.
 
walthamny said:
Every excessive fee claim here is bogus, 50 state insurance regulators approved the product for sale separately with fee schedule used in the sale Now if they can find a case where a senior took out a reverse mortgage and bought IUL maybe. or some other suitability violation.
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The excessive fees being discussed are the cost of insurance because the policy was structured for death benefit and sold as a retirement plan. The agents misrepresented the product during the sales process. Unfortunately many of the agents are in MLM organizations that only care about sales and commissions. The agents don't have a clue what they are selling and the consumers just believe that they are going to buy this retirement plan and make a lot of money. This is basically a bait and switch operation. They are promising a retirement plan and selling death benefit based on illustrations that are overly aggressive.
 
Allen Trent said:
Normally agree with this thought process. But seeing some young parents that make $50k per year spend $5,000 a year on an IUL when they dont have emergency fund nor 401k because the IUL was sold at minimum funding for commissions because it was "tax free, max borrow, pay for nursing home bills, plus, plus, plus", some of these lawsuits are warranted for the sale practices of producers & uplines even if the product design wasnt inherently bad
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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.
 
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