Simple IUL's for Dummies . . .

[DHK]

There's often a history that other posters know nothing about that get brought into other threads.

https://insurance-forums.com/commun...urs-selling-final-expense.92766/#post-1225070

https://insurance-forums.com/community/threads/sell-earn-recruit-earn.86193/

https://insurance-forums.com/community/threads/licensed-interns-green-horn-agents.85924/

https://insurance-forums.com/community/threads/series-6-7-and-63-license.86199/

 

[myinsurebiz]

Happens all over the forum. Happy to see someone else feels the same way.

There is something wrong with the majority of humans. Humans like to put others down to make themselves feel better. And it's amplified on the internet because of the anonymity (cowardice as well).

Don't know why I'm responding to your post as I came looking for IUL info...

I've asked many questions and gotten insulted for no reason as well. Just a shame.

I wouldn't be surprised if I got insulted for writing this post. I fully expect there to be a rude and insulting comment after every post now. Isn't that just sad?

It is.

The old Hens have nothing better to do . . .

They belittle in order to strut. But - maybe makes their day

p.s. - haven't written a single IUL and not my market.

 

[scagnt83]

DHK was not all that rude in his response. And he was SPOT ON!

A client could lose thousands, tens even hundreds of thousands if an agent fails to design an IUL properly.

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And Ive seen it happen. I have seen multiple people who have lost thousands of dollars in out of pocket costs.... and hundred of thousands, even millions in lost opportunity cost. All because an agent sold a product they knew nothing about.

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It would be like an investment advisor who's professional knowledge is so limited they only know index funds. No person in their right mind would use that advisor.

There is no such thing as a "simple IUL". If an agent needs a "simple IUL" to sell .... they have no business selling IUL. Period.

With advanced products... FIRST you learn them.... THEN you can sell them.

Advanced products do not come with training wheels. And the damage you can do to clients is enormous.

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This isnt about picking on people. This is about protecting the integrity of our industry. And protecting the consumers who put their trust in us. IUL is a totally different ball game than most other insurance... with ramifications much larger.

 

[DHK]

It's not like I named the thread "IUL for Dummies". I quoted the title of the thread in my response. I wasn't name-calling (this time).

 

[scagnt83]

If someone wants to sell IUL, then they need to take the time to learn the product first. And there are plenty of resources out there if you look. Both independent sources and carrier sources of info.

I've had clients who've learned IULs better than 90% of agents selling them, just by reading this forum. But they put in serious effort and time to do so.

Too many agents want to be spoon fed how the product works.

They dont want to spend 7-10 hours per week reading and researching and running hypothetical illustrations. Many of them have not even taken the time to fully read an illustration. Go run 50 illustrations in various ways & compare them all, read all you can find on the forum about IUL and Par-WL, read carrier info, watch carrier webinars, etc.

Advanced sales require advanced learning and advanced effort/time on the Advisor's part.

 

[myinsurebiz]

I really like the Ameritas IUL - but, 1) IUL is not my market focus, and 2) they aren't a "simple" product. I could learn it I'm sure.

If someone has a need for a IUL product - I refer it to a local Agent and they refer their Small Business / Worksite to me.

Had a business owner 2 weeks ago that was in the right position for an IUL. My friend wrote that and I wrote the rest.

On the bashing part - I have thick skin, thicker than any of these peeps on the thread. I still get invited to go fishing

 

[pbar]

I am one of those who got stuck in a wrong IUL which I can't neither maxfund nor get out of or even reduce DB until the 15th year. All because of a greedy agent who only saw his commissions and not the damage it was doing me.

Now, I have learnt so much about IULs that I can easily get into this business myself. I know agents promote GPT in this forum but I found a way (for people who want mostly DB) with CVAT which bypasses paying all the fees. It's too late for me but maybe some agents can pick it up and offer to clients who it is appropriate for, although, I highly doubt it as it generates very less commissions:(

Buy a CVAT policy with just $100K DB which requires maybe $500 per year in premiums. Just pay $500 per year for the first 10 years which is the period which has all those nasty fees. Put all the premium money you would have paid in bonds instead. After 10 years, dump all that money in the bonds into this CVAT policy. It creates an instant highly efficient policy with DB more than double the CV. Beautiful, huh? More importantly, it will never lapse like the underfunded GPT policies which were not designed properly with minimum increasing DB leveled off after 15 year like mine.

This would have been perfect for me but why would my agent sell me $500 per year premium policy when he gets much more in commissions with $50K per year premium policy.
* of course, one has to buy 10 year term to make up for the difference in the DB during the first 10 years but that nothing compared to all those IUL fees

 

[FinalExpenseDojo.com]

I am one of those who got stuck in a wrong IUL which I can't neither maxfund nor get out of or even reduce DB until the 15th year. All because of a greedy agent who only saw his commissions and not the damage it was doing me.

Now, I have learnt so much about IULs that I can easily get into this business myself. I know agents promote GPT in this forum but I found a way (for people who want mostly DB) with CVAT which bypasses paying all the fees. It's too late for me but maybe some agents can pick it up and offer to clients who it is appropriate for, although, I highly doubt it as it generates very less commissions:(

Buy a CVAT policy with just $100K DB which requires maybe $500 per year in premiums. Just pay $500 per year for the first 10 years which is the period which has all those nasty fees. Put all the premium money you would have paid in bonds instead. After 10 years, dump all that money in the bonds into this CVAT policy. It creates an instant highly efficient policy with DB more than double the CV. Beautiful, huh? More importantly, it will never lapse like the underfunded GPT policies which were not designed properly with minimum increasing DB leveled off after 15 year like mine.

This would have been perfect for me but why would my agent sell me $500 per year premium policy when he gets much more in commissions with $50K per year premium policy.
* of course, one has to buy 10 year term to make up for the difference in the DB during the first 10 years but that nothing compared to all those IUL fees

Sorry this happened to you!

Which carrier do you have?

 

[pbar]

Sorry this happened to you!

Which carrier do you have?

North American Life but carrier doesn't matter as long as agent designs it well. IULs are not meant for huge DBs as the premium becomes too much in the latter years.Wish I had known that. WL would have been better for me.

 

[Allen Trent]

I am one of those who got stuck in a wrong IUL which I can't neither maxfund nor get out of or even reduce DB until the 15th year. All because of a greedy agent who only saw his commissions and not the damage it was doing me.

Now, I have learnt so much about IULs that I can easily get into this business myself. I know agents promote GPT in this forum but I found a way (for people who want mostly DB) with CVAT which bypasses paying all the fees. It's too late for me but maybe some agents can pick it up and offer to clients who it is appropriate for, although, I highly doubt it as it generates very less commissions:(

Buy a CVAT policy with just $100K DB which requires maybe $500 per year in premiums. Just pay $500 per year for the first 10 years which is the period which has all those nasty fees. Put all the premium money you would have paid in bonds instead. After 10 years, dump all that money in the bonds into this CVAT policy. It creates an instant highly efficient policy with DB more than double the CV. Beautiful, huh? More importantly, it will never lapse like the underfunded GPT policies which were not designed properly with minimum increasing DB leveled off after 15 year like mine.

Interesting. would have to see it to get a better feel for how it plays out & illustrates. Most CVAT cases I have run illustrations for looked better early, but worse in later years. basically, the added face needed up front for the CVAT later ate up some of the CV because of the higher COI costs for the added net amount at risk of the insurance face amount. Regardless, I totally understand your frustration as I have seen way, way too many cases where agents put too high of a IUL or WL face instead of max funding an IUL or max funding a WL by using modal PUAR funding
This would have been perfect for me but why would my agent sell me $500 per year premium policy when he gets much more in commissions with $50K per year premium policy.
* of course, one has to buy 10 year term to make up for the difference in the DB during the first 10 years but that nothing compared to all those IUL fees