We all know IULs are a ripoff

[DHK]

You're awfully angry and have an ax to grind.

Care to share your story?

Note: IULs use stock market call options, so you don't get the full upside. But caps adjust for the same reasons WL dividends adjust.

And if you're concerned about all the "Fees", I suggest that you're not familiar with the formula for life insurance and applying these charges to which part of the formula.

Net death benefit = Cash Values + Net Amount At Risk - any outstanding loans.

Cash values earn indexed interest (depending on index performance)
NAAR has ongoing COI costs.
Outstanding loans have loan interest charges.

You can compare it to cheese.
- IUL is like swiss cheese. Need a lot of cheese in order to over-compensate for the holes.
- WL is like cheddar. No holes.

It all has to be managed properly. If properly funded and structured (the key word is 'if'), you have the best chance of having a successful product. With UL/IUL... the CLIENT owns the risk in exchange for a potentially higher return. With WL, it's the truest risk transfer vehicle.

 

[DHK]

Oh, let's not forget that UL/IUL/VUL simply has different disclosure requirements due to the flexible nature of the product as opposed to WL's fixed nature.

Whole life: fixed premium, fixed death benefit, fixed interest rate. It's like buying a CD at the bank. You don't ask "What are the costs for investing in a 1-year bank CD?" It's bundled - not itemized. It is what it is.

IUL: flexible premium, flexible death benefit, flexible interest. It's like buying a money market fund. There's a prospectus for a money market fund. Why? 1) it's possible that it will "break the buck" and 2) there are expenses because it's not guaranteed.

But don't believe that there aren't expenses in fixed products. It's just bundled, rather than itemized.

 

[phoenixlord]

You're awfully angry and have an ax to grind.

Care to share your story?

Note: IULs use stock market call options, so you don't get the full upside. But caps adjust for the same reasons WL dividends adjust.

And if you're concerned about all the "Fees", I suggest that you're not familiar with the formula for life insurance and applying these charges to which part of the formula.

Net death benefit = Cash Values + Net Amount At Risk - any outstanding loans.

Cash values earn indexed interest (depending on index performance)
NAAR has ongoing COI costs.
Outstanding loans have loan interest charges.

You can compare it to cheese.
- IUL is like swiss cheese. Need a lot of cheese in order to over-compensate for the holes.
- WL is like cheddar. No holes.

It all has to be managed properly. If properly funded and structured (the key word is 'if'), you have the best chance of having a successful product. With UL/IUL... the CLIENT owns the risk in exchange for a potentially higher return. With WL, it's the truest risk transfer vehicle.

Am not sad or angry or have a story. Just killing time on a Friday afternoon.

I just gave you the ultimate design, CV = DB. Even that is destined to be doomed in a few years and you talk as if there is a secret sauce design. It's the agent's like you who keep drawing new agents into this and keep this whole thing going.

 

[DHK]

It's the agent's like you who keep drawing new agents into this and keep this whole thing going.

You joined today and you're casting aspersions? Nice to meet you too. Ever try to "win friends and influence people"?

There is an ethical way to present and structure these policies. And yes, they'll do fine primarily because of the principal protection.

Now VUL... that's a different animal.

 

[DHK]

Fill the box or pay the curve.

 

[Life Hawk]

Just killing time on a Friday afternoon.

People are dying... hospitals are over run... mass graves are being dug... and you are "just killing time on a Friday afternoon????? How Dare You!

 

[Lloyds of Lubbock]

Check out. "it's the hottest thing in life insurance" WSJ January 7th.
It is a scathing article about IUL.
Now the next person to read this can post a scathing article about Whole Life (my preference)
You can pick apart any product.
If you don't like IUL, don't sell it.

 

[DHK]

But he's social distancing! And if he happens to be in the LA area, what else is he going to do until August?

 

[Lloyds of Lubbock]

here you don't have to look for it.

 

[DHK]

And I am on record that I do NOT like these "index multipliers" that companies are coming out with. They charge an asset-based fee for the chance to earn a higher return, but they charge that fee regardless of the return. I do NOT like those. Those must only be attractive to those who sell by illustration.

I wouldn't touch those.