Which IUL is Better, Nationwide or North America?

[csinsurance]

A client is recommended an IUL by an agent from Nationwide. At the same time, He is also been introduced an IUL from North America. Which one is better to choose?

A client is interested in having an IUL with following features:

1. Able to accumulate cash as much as possible
2. Have living benefit without cost include TLC rider with no cost
3. Good cap and floor
4. “0” charge if borrow the money from the cash value account
5. Cost of insurance is transparent. No hidden fee and any unpredicted cost in the future
6. Better % of accelerated death benefit
7. Offer lifetime income rider

Does any IUL have some or all the feature of the above? Any recommendations?

 

[ATM]

NA is better but Midland, NA's sister company is a little better than NA IMO, but only marginally so.

Midland/NA are the only companies I know of that credit indexed gains on policy expenses. Meaning if you put 10k a year in a policy and there are 2 k expenses MNL/NA credit you at the end of the year on your original 10k premium and not the $8k that did go for expenses.

Nationwide requires you to put some money into the fixed account, MNL/NA do not.

I don't believe Nationwide has multiple index options, MNL/NA has 13. And you can switch to the fixed bucket at any time.

MNL/NA has a 3% minimum return floor. Don't think Nationwide does. Depending on the product MNL/NA have a guaranteed .75% interest bonus after the 10th year.

MNL/NA have a contractually guaranteed zero net cost fixed loan. Nationwide does not.

All have over-loan protection so if you are in danger of lapsing the policy after taking loans in retirement, and meeting other requirements, they preserve the policy so it doesn't lapse and a 1099/tax bill goes out.

 

[FEsalesNC]

Does Midland contract direct?

NA is better but Midland, NA's sister company is a little better than NA IMO, but only marginally so.

Midland/NA are the only companies I know of that credit indexed gains on policy expenses. Meaning if you put 10k a year in a policy and there are 2 k expenses MNL/NA credit you at the end of the year on your original 10k premium and not the $8k that did go for expenses.

Nationwide requires you to put some money into the fixed account, MNL/NA do not.

I don't believe Nationwide has multiple index options, MNL/NA has 13. And you can switch to the fixed bucket at any time.

MNL/NA has a 3% minimum return floor. Don't think Nationwide does. Depending on the product MNL/NA have a guaranteed .75% interest bonus after the 10th year.

MNL/NA have a contractually guaranteed zero net cost fixed loan. Nationwide does not.

All have over-loan protection so if you are in danger of lapsing the policy after taking loans in retirement, and meeting other requirements, they preserve the policy so it doesn't lapse and a 1099/tax bill goes out.

 

[scagnt83]

Does Midland contract direct?

Yes
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[pbar]

NA is better but Midland, NA's sister company is a little better than NA IMO, but only marginally so.



Midland/NA are the only companies I know of that credit indexed gains on policy expenses. Meaning if you put 10k a year in a policy and there are 2 k expenses MNL/NA credit you at the end of the year on your original 10k premium and not the $8k that did go for expenses.

Nationwide requires you to put some money into the fixed account, MNL/NA do not.

I don't believe Nationwide has multiple index options, MNL/NA has 13. And you can switch to the fixed bucket at any time.

MNL/NA has a 3% minimum return floor. Don't think Nationwide does. Depending on the product MNL/NA have a guaranteed .75% interest bonus after the 10th year.

MNL/NA have a contractually guaranteed zero net cost fixed loan. Nationwide does not.

All have over-loan protection so if you are in danger of lapsing the policy after taking loans in retirement, and meeting other requirements, they preserve the policy so it doesn't lapse and a 1099/tax bill goes out.

3% Floor on NA EIUL? I thought thats only if you choose fixed account? Will they credit 3% every year even if we elect an Index for crediting?

 

[DHK]

There are a few companies that offer a "recap" or a "look-back" after a period of time and credit a minimum interest rate if the product didn't perform.

I know Aviva had something like this. (I don't know if Athene/Accordia still does.) After 8 years, if the policy didn't earn at least 3% per year, they would retroactively credit the policy to make it whole to 3% for 8 years... and do that every 8 year period.

However, you have to keep the policy in force in order to get it.

 

[pbar]

There are a few companies that offer a "recap" or a "look-back" after a period of time and credit a minimum interest rate if the product didn't perform.

I know Aviva had something like this. (I don't know if Athene/Accordia still does.) After 8 years, if the policy didn't earn at least 3% per year, they would retroactively credit the policy to make it whole to 3% for 8 years... and do that every 8 year period.

However, you have to keep the policy in force in order to get it.

Thanks, I have one more question. For that "numbers" client, is it possible to get exact policy expenses like COI from North American?

 

[scagnt83]

Thanks, I have one more question. For that "numbers" client, is it possible to get exact policy expenses like COI from North American?

Yes. Most any IUL will show you this on the Expense Report of the Illustration. It is usually not part of the default illustration, but you can choose to add it on.

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3% Floor on NA EIUL? I thought thats only if you choose fixed account? Will they credit 3% every year even if we elect an Index for crediting?

They have a 3% minumum over an 8 year period. So if the Credited Rate is below 3% per year after year 8, they increase the Credited Rate to equal an annualized 3% over that 8 year period. This lookback happens every 8 years.

And I think the Fixed Account for NA is 4%, not 3%.

 

[pbar]

They have a 3% minumum over an 8 year period. So if the Credited Rate is below 3% per year after year 8, they increase the Credited Rate to equal an annualized 3% over that 8 year period. This lookback happens every 8 years.

and I guess they also give 0.75% bonus every year after 10th year, right?

 

[DWPCL]

Yes. Most any IUL will show you this on the Expense Report of the Illustration. It is usually not part of the default illustration, but you can choose to add it on.

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They have a 3% minumum over an 8 year period. So if the Credited Rate is below 3% per year after year 8, they increase the Credited Rate to equal an annualized 3% over that 8 year period. This lookback happens every 8 years.

And I think the Fixed Account for NA is 4%, not 3%.

Does Midland have that same feature?