Perm Life Product With Best Living Benefits

[Allen Trent]

Did Midland lower caps recently on their most popular IUL products that were sold a couple years ago?
AO

Yes, Midland did lower caps as most IUL carriers have in recent months. Low interest rate environment on bonds, etc in their portfolio don't give them as much cash to go with to the index options market. Thus, they have to buy options with lower caps for the money they have to work with.

 

[AOKING]

Yes, Midland did lower caps as most IUL carriers have in recent months. Low interest rate environment on bonds, etc in their portfolio don't give them as much cash to go with to the index options market. Thus, they have to buy options with lower caps for the money they have to work with.

Is this the case...….Maybe on new business, I heard midland drastically reduced on caps on old policies......is that the case?

 

[Allen Trent]

I know they lowered caps late last year on existing business by I believe 2%. I don't know what they have done toward new business, but I suspect some have also been lowered. Minnesota Life I believe treats inforce & new business the same, but they lowered caps & participation rates in March & now again in September. In the last 18 months, the cap on 1 account has gone from 13%, to 12.5%, to 11.75%, now to 11%. it is to be expected

 

[Lloyds of Lubbock]

Bob Castiglione would tell you to insure yourself for your human life value.
He would then go through your financials to see how much could be put in whole life without you changing your lifestyle.
Is there something wrong with that.
He would also would also give you a benefit list of what the whole life policy will do for you.

 

[Lloyds of Lubbock]

We had a John Hancock presentation in my office yesterday.
They were promoting their latest IUL.
We dont sell any IUL but it did look interesting.
Does anybody know their history with caps?