When Should the Illustration Break Even on an IUL?
- Thread starter jboussea
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JustAMarketer
Expert
If you can give me more variables (i.e age, sex, annual premium, face, A vs B) I'd be happy to illustrated with LSW Flex Life and F&G Synergy Advantage Gold and tell you what I come up with
I run at 6% also.
Don't get me wrong, Im not trying to knock on it or anything. It's just above what I usually use so Im just curious as to why? Aside from using a historical look back average as benchmark.
The big question should focus on the purpose not the breakeven point. I've done a bunch that might have less cash value but generate a lot more income because the goal was income. What's the goal?
Ran one today for a 43 year old male at standard and it was positive after year 2. The best income was positive after year 4 or 5 I forget because it wasn't the goal.
If you're running LSW and F&G only you're really doing your clients a disservice. I run them all the time and never use them.
Ran one today for a 43 year old male at standard and it was positive after year 2. The best income was positive after year 4 or 5 I forget because it wasn't the goal.
If you're running LSW and F&G only you're really doing your clients a disservice. I run them all the time and never use them.
So you are saying you run less than 6? I feel 6 is a reasonable rate that is fairly achievable. I'd say the vast majority of people run 7 or higher. Many probably use the max that will illustrate.
Yes, I usually run it below 6% but not by much. Very rarely will I ever go above it. I usually stay within 4-5.5 depending on the company and the software capabilities, whether it has a mid point or not etc.
I find that setting up an IUL correctly even at 4-5.5 already/usually lasts for life with fairly decent/achievable numbers. I think this is true even at 3%. Apparently Im just very conservative according to other agents Ive spoken with.
Like I said, its just above what I usually run it at. Im not saying I dont, just not often. The exception usually depends on the client as well, 6% is my limit.
Under promise, over deliver?
And you're right, some people do illustrate way higher. Ive seen some go as high as 9-10%.
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- #9
Same here.. I was trying to under promise with 6% .. Of course there's alawys the possibility of it doing worse than 6% . but if it does.. I would assume we'd have major problem in the economy
2000-2015 ... started with 3 negative years ... and that 16 year period was .5 to 1% better than 6%
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27 year old male annual premium is 5000 .. run at 6% ..face b
what's the difference between Synerge .. and F%G lif elite
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