S&P 500 with Spread for IUL - Have Any of You Guys Used It?

jboussea

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I was looking at Midland/NA spread rate is 3.5 - 4% .. I don't know about you guys but this is very attractive. Penn is 6% (but they do have a 1% floor) .. Given the way the S&P goes way up and down, I think it's a strategy worth considering? Especially for younger folks... I would do it for myself. Am I crazy?

What is the downside?

I just ran a calculator with North American 4% spread rate and the 100th percentile was 6.70% .. 95% of the scenarios would return 7.67% or better. That was based on the past 50 years.

One good good 20% return from the S&P gets your IUL cash value set for good.

The only downside I can see is that there are not a lot of carriers using it, so Midland /NA could definitely go to a 5% spread without any consequences

I'm curious to see what everyone else thinks.
 
Do more research! Allianz, MN Life and AGLA have great IUL's that have many options in addition to the S&P 500. AGLA uses the Merril Lynch Strategic Balance Index with a historical 7.4% return and their products have living benefits and a lot of flexibility. Nothing wrong with Midland, but I would look into other carriers as well.
 
I m not looking for something that has a different option than the s&P 500 .... I'm wondering about carriers that have the SPREAD option of the S&P 500
 
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