Overfunding IUL

[charleszubrod]

I am looking to overfund a UIL to build cash for a 30yr old person. Any suggestions on which Carriers.

In advance, thank you!

 

[insurance404]

I am looking to overfund a UIL to build cash for a 30yr old person. Any suggestions on which Carriers. In advance, thank you!

I always use a Mutual Carrier for IUL or WL. Personally Penn Mutual has a great product.

 

[TwiLight]

My first choice would be North American/Midland. Great Options for Indexing. Great performance.

Second would be Life of the Southwest/National Life Group (Great Living Benefits). Just right behind NA in MHO.

Honorable Mention....
Allianz
Minnesota Life
Sagicor

 

[scagnt83]

I would also highly recommend NA/Midland.

But after them I would put LFG, PAC, & Allianz.

LSW has a good product, it is competitive with NA & LFG (in both the policy and the living benefits). But their ratings are not as good as NA & LFG (or allianz) . No reason to go with lower ratings when you dont get a better benefit, especially on a lifetime contract. jmo

 

[maxherr]

I am looking to overfund a UIL

Unless you are deliberately trying to MEC the policy, you can't really "overfund" a UL policy -- the insurance company won't let you. What you can do is MAX FUND a UL policy by paying the "7-pay" premium every year, beginning on Day 1. You won't cause the policy to become a MEC, and you will obtain maximum cash accumulation in the early years of the contract which is vital to the longevity of any UL policy -- "guaranteed" no lapse or not.

And read your policy carefully. You may notice that the "guaranteed" no lapse provision dies long before you do if you ever take money out of the cash accumulation or fail to pay the minimum premium in all months.

The distinction between mutual and stock insurers is meaningless if the policy from the mutual insurer is non-participating. There aren't that many participating UL policies available.