- 10,318
Its always worked so-so in FireFox for me. But Id like to use it in Chrome since that is what I normally use.
Top IULs
- Thread starter heynow5
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Its always worked so-so in FireFox for me. But Id like to use it in Chrome since that is what I normally use.
William3
New Member
Anyone familiar with the site IUL Digest? Does this guy deliver the goods? Give solid compares on IULs?
It's a pay site so trying to get a sense of it before I jump in.
Much as I'd like to sell these high-comm products, I haven't yet seen one I'd want to sell to anyone. Thanks for your input.
It's a pay site so trying to get a sense of it before I jump in.
Much as I'd like to sell these high-comm products, I haven't yet seen one I'd want to sell to anyone. Thanks for your input.
- 10,318
Never seen a need to pay for info that I can get for free.
A properly designed overfunded IUL is an extremely low commission product on a percentage basis of total premium.
If someone puts $10k into an IUL I might get paid around $4k
Id much rather sell a GUL with the same premium vs. an IUL. Id get paid twice as much or more.
William3
New Member
Thanks scagnt. In your view who offers a properly designed IUL? The only one I’ve studied in any depth is Transamerica's FFIUL, the flavor sold through WFG. Looks like a pretty dismal deal for clients. I don’t know if most IULs skimp on as many guarantees as this one, or if this FFIUL is an esp unattractive IUL.
Reading through these forums, I get the feeling it’s not great.
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Scagnt, I’m very new to the biz, so maybe this is a 101 question. But but why is it I can’t find full policies, complete with Policy Data (except client private ID info) anywhere on the net? Are their legal barriers to posting those? I’d like to put a few IULs side by side and compare them in detail. Where can I find those full IUL policies? Thanks for your help.
Reading through these forums, I get the feeling it’s not great.
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Scagnt, I’m very new to the biz, so maybe this is a 101 question. But but why is it I can’t find full policies, complete with Policy Data (except client private ID info) anywhere on the net? Are their legal barriers to posting those? I’d like to put a few IULs side by side and compare them in detail. Where can I find those full IUL policies? Thanks for your help.
- 11,273
A properly designed IUL is done by the agent, not by the company.
Search Scagnt83's posts and they will help you.
Generally:
- Death Benefit: Minimum
- Premium: Maximum
- Death Benefit Option: B, but switch to A in retirement, or when premiums stop.
He can explain WHY a whole lot better than I can, but this is essentially what works. Yes, your commissions will be much closer to WL commissions, but it's the way to properly structure a policy that has less of a chance of policy implosion during retirement years.
Search Scagnt83's posts and they will help you.
Generally:
- Death Benefit: Minimum
- Premium: Maximum
- Death Benefit Option: B, but switch to A in retirement, or when premiums stop.
He can explain WHY a whole lot better than I can, but this is essentially what works. Yes, your commissions will be much closer to WL commissions, but it's the way to properly structure a policy that has less of a chance of policy implosion during retirement years.
- 10,318
The agent offers a properly designed IUL. The carrier is secondary to what combination of options you choose for the policy (GPT or CVAT, Opt1 or 2 or 3, changes to the DB option, payment period).
An IUL that is designed for maximum cash accumulation, will give the agent the smallest commission % for that given Premium. WFG (in my experience) sends agents blindly out into the world to sell IUL policies that are designed to maximize the commission, not the premium.
But Trans is not the best IUL in my opinion. There is tons of info on here about various IUL products.
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Carriers offer what is called a "specimen policy" if you really want to read all of the legal wording behind it all.
The best way to learn about a specific product is to run an illustration for it. The illustration gives a very detailed explanation of how the policy works (as it is designed for that illustration).
If you want to compare two different policies then you run illustrations at the same premium level and compare the two. If you are not contracted with the various carriers sometimes they will send you the software if you call their agent sales desk. If not, just find a good IMO (not a MLM recruiting scheme) that will help to educate you and run illustrations for you. Actually, you need the IMO either way... find a good IMO. Pinney Insurance, Ash Brokerage, FIG Insurance would all be good groups to talk to that can teach you and provide correct advice.
But here is the thing. It sounds like you are new to the industry. You need to learn the basic products and succeed with the basics before running with the most complicated life insurance product on the market. Go sell a crap load of Term/GUL/WL for a couple of years and slowly learn the industry and grow into more advanced stuff. IUL is a great product but its also not a cure for retirement all like some groups are trying to pitch.
William3
New Member
Scangt, DHK, thanks very much for your help. I read through a bunch of threads. You guys are a great group and *funny.* That woman's epic quixotic search for an IMO, omg crack me up.
About WFG, a friend and her upline, both immigrants, approached me. I’d been thinking anyway about selling life ins because of steady new market (ongoing BB/steady immigration) and the econ’s getting better so folks have more money to plan. Also I did MLM in a previous life--Nu Skin, ‘80s. I alternated between considering WFG and urging my friend to run for the hills. Both of them bought the “flagship” pdt, that FFIUL. I managed to get policy copy on that IUL’s terms and conditions, and couldn’t believe how few guarantees it gives the policyholder and how open-ended TA leaves things for itself. Contractual guarantees of only 2% basic acct and 0.75% for the index acct. Index cap that TA can drop on the fly down to 2%. No mention of “% participation” to indexes. All that of course before you factor in the loads of monthly and “periodic” fees, some of which aren’t capped. I have the sense TA designed this thing so it could lower net annual returns after fees to effectively zero--negative even?--if it wanted. Even if people faithfully paid the estim level premium and never borrowed against it. Of course my two recruiters have near zero idea what they bought and now sell. Anyway, no question to avoid WFG now thanks in good part to your input. Hard to imagine a place that institutionalizes deception so deeply and suffers so much churn'n'burn. Scangt, I went to the Pinney, Ash, and FIG sites, and watched some Pinney vids on IULs, informative. And thanks for advising to sell loads of Term/GUL/WL first, definitely makes sense.
About WFG, a friend and her upline, both immigrants, approached me. I’d been thinking anyway about selling life ins because of steady new market (ongoing BB/steady immigration) and the econ’s getting better so folks have more money to plan. Also I did MLM in a previous life--Nu Skin, ‘80s. I alternated between considering WFG and urging my friend to run for the hills. Both of them bought the “flagship” pdt, that FFIUL. I managed to get policy copy on that IUL’s terms and conditions, and couldn’t believe how few guarantees it gives the policyholder and how open-ended TA leaves things for itself. Contractual guarantees of only 2% basic acct and 0.75% for the index acct. Index cap that TA can drop on the fly down to 2%. No mention of “% participation” to indexes. All that of course before you factor in the loads of monthly and “periodic” fees, some of which aren’t capped. I have the sense TA designed this thing so it could lower net annual returns after fees to effectively zero--negative even?--if it wanted. Even if people faithfully paid the estim level premium and never borrowed against it. Of course my two recruiters have near zero idea what they bought and now sell. Anyway, no question to avoid WFG now thanks in good part to your input. Hard to imagine a place that institutionalizes deception so deeply and suffers so much churn'n'burn. Scangt, I went to the Pinney, Ash, and FIG sites, and watched some Pinney vids on IULs, informative. And thanks for advising to sell loads of Term/GUL/WL first, definitely makes sense.
- 11,273
William3,
I'm going to help you a bit here. Percentages (%) outside of dollar amounts ($) mean nothing.
If I have a credit card with 18.9% interest rate... and I have a savings account with a 1% interest rate... what does that mean?
It means absolutely nothing until you put some dollars into it.
If that same credit card has a $200 balance... but that savings account has $25,000... do I have a problem? Not really.
That's why you need to run illustrations to determine how to best structure the policy.
I created the attached chart just to show the difference between term, minimum funded WL, and a maximum funded IUL. (Disclosure: The WL from this particular company CAN be "over-funded", but it's still not that great of a policy to begin with.)
Compare years 1 & 2 between the WL and the IUL. At the end of year 2, the minimum funded WL has only $23 available in cash values, while the over-funded IUL has $10,991 available cash surrender value. The IUL "breaks even" (available cash > premiums paid) in year 8, while the minimum funded WL "broke even" in year 22 (non-guaranteed).
I've determined my own "benchmark" for a properly structured permanent policy that seems to fit. There should be 75% or more available cash value compared to premiums paid by year 5. If you paid in $10,000 per year for 5 years, there should be $37,500+ available in year 5. Don't confuse account values with cash surrender values. Account values cannot necessarily be accessed, while cash surrender values can be accessed for loans or withdrawal. According to that guideline, the IUL illustrated has $44,480 in year 5, while the minimum funded WL had only $23,091.
Now, you can do all the same things with a WL policy and it'll be easier to do. I just wanted to give you an idea of what you should be looking for when you're doing product and policy structure comparisons.
BTW, a similar chart can be great if a prospect ever says "Isn't permanent life insurance expensive?" You can say, "You're right, it can be expensive... but only if you're working with an amateur. A professional knows how to really harness these things. Let me show you..."
I'm going to help you a bit here. Percentages (%) outside of dollar amounts ($) mean nothing.
If I have a credit card with 18.9% interest rate... and I have a savings account with a 1% interest rate... what does that mean?
It means absolutely nothing until you put some dollars into it.
If that same credit card has a $200 balance... but that savings account has $25,000... do I have a problem? Not really.
That's why you need to run illustrations to determine how to best structure the policy.
I created the attached chart just to show the difference between term, minimum funded WL, and a maximum funded IUL. (Disclosure: The WL from this particular company CAN be "over-funded", but it's still not that great of a policy to begin with.)
Compare years 1 & 2 between the WL and the IUL. At the end of year 2, the minimum funded WL has only $23 available in cash values, while the over-funded IUL has $10,991 available cash surrender value. The IUL "breaks even" (available cash > premiums paid) in year 8, while the minimum funded WL "broke even" in year 22 (non-guaranteed).
I've determined my own "benchmark" for a properly structured permanent policy that seems to fit. There should be 75% or more available cash value compared to premiums paid by year 5. If you paid in $10,000 per year for 5 years, there should be $37,500+ available in year 5. Don't confuse account values with cash surrender values. Account values cannot necessarily be accessed, while cash surrender values can be accessed for loans or withdrawal. According to that guideline, the IUL illustrated has $44,480 in year 5, while the minimum funded WL had only $23,091.
Now, you can do all the same things with a WL policy and it'll be easier to do. I just wanted to give you an idea of what you should be looking for when you're doing product and policy structure comparisons.
BTW, a similar chart can be great if a prospect ever says "Isn't permanent life insurance expensive?" You can say, "You're right, it can be expensive... but only if you're working with an amateur. A professional knows how to really harness these things. Let me show you..."
- 11,273
The reason for that comparison is when someone asks or tells you "Isn't life insurance expensive?"
I would then say "Yes, you're right. Let me show you how amateurs do it, versus how *I* do it."
I would then say "Yes, you're right. Let me show you how amateurs do it, versus how *I* do it."
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