Which One is Better for Midland CV4 IUL or North America Builder IUL7 ?

Discussion in 'Indexed Universal Life Forum' started by blueskyqtc, Jun 1, 2016.

  1. ATM
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    ATM Well-Known Member

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    Midland renewal comp and comp on excess premiums is much higher. I did the comparisons back when I was looking and all rolled together Midland paid much better, plus I deal directly with them and don't have to screw with an IMO.

    As to products they will perform nearly identically. However in most cases Midland performs a few dollars better in cash values or a couple bucks lower in premium on GUL type sales.

    Most of the other agents I have who use NA don't like them very much. Most MNL agents do. I know lots of them after having been on their trips over the past 10 yrs or so. I think that's funny because NA and MNL are in the same building and sit side by side. I'm pretty sre the NA agents don't know that they don't like their IMO rather than the insurance company.
     
  2. wfs
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    wfs Well-Known Member

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    You can contact them directly - joinmn.com

    I was looking into them, but I am not impressed with the first year compensation on IUL. In fact, the commission on selling Option B is 85%, which is 10% less than Option A, which I simply do not understand.

    That makes it a deal-killer for me, unless I can get higher through an IMO.
     
  3. jboussea
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    jboussea Well-Known Member

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    that's just to start.. the more you prooduce the more you make... now if you don't plan to write a lot go through an IMO and contract with NA ... that's why they have both tiers...
     
  4. ATM
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    ATM Well-Known Member

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    Option B comp is 10% less than option A but pays an extra .5% on excess and pays an .25% asset based trail. If you are writing a decent amount of business and keep it on the books then you will probably decide like I did that option B is a much better deal for building your business and building the value of your business.

    The thing that made the decision easy for me, besides dealing direct which I would never give up, is that the production bonus MNL pays is also paid on excess premiums. If you do 50k with them you get a 20% bonus so the 1st yr 85%/95% goes to 105%/110%. But the excess goes from 4%/3.5% to 5%/4.5%.

    At 100k of production the bonus is 25% and at 250k, which is where my agency is, we get 30% and the increase on excess is another 1.5%. There's also another 5% bonus they after 2 or 3yrs if you keep production at least equal to the year before.

    So I'm getting 35% on top of the 85% option B comp (120% first year), plus 5.5% on excess and 25bps trail paid on cash values. Or could take 130%, 5% and no trail.

    Products are good and I know my underwriter and talk to her all the time. That to me is worth a whole heck of a lot and I know it makes me more money.
     
  5. scagnt83
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    scagnt83 Well-Known Member

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    For a steady producer, Midland will be the better contract. For someone who writes 1 or 2 cases a year, go with North American.

    After factoring in the production bonus, persistency bonus, and the asset based bonus; Midland is a much better contract for someone producing decent business.

    Some people dont look past the first column of numbers.... others are just bad at math.
     
  6. jboussea
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    jboussea Well-Known Member

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    To ypu guys who have both oon the books.. Which one of ypur policies have been faring better
     
  7. scagnt83
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    scagnt83 Well-Known Member

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    They have been about the same for the most part. Its hard to compare exactly since it is rare to have 2 policies that are exactly the same.

    Caps are usually the same and the policies are almost identical. Midland usually has a higher DB and a slightly higher CV on paper, including Guaranteed Values. So in real life that is going to be true as well... to an extent at least. That difference is a lot more prevalent on large policies or single pay policies.

    Ive also found that Midland gives better service to agents and clients. Much easier to deal with from my experience.
     
  8. jboussea
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    jboussea Well-Known Member

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    How is Midland with the underwriting .. cause NA sucks.. going through an IMO unless they're hands on ... the underwriting process is as good as your IMO I guess..
     
  9. scagnt83
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    scagnt83 Well-Known Member

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    UW is exactly the same I think for both. They loosened up UW a bit last year. I would not consider them as strict on UW as many other players in the CV Life Insurance market. The Rapid Builder product table shaves, I think up to table 2.

    Not sure what you are trying to say with the second part of your post. UW process is based on NAs UW Guidelines. You can go online and download the basic UW guidelines so you can prescreen clients yourself. If your IMO is not able to give you accurate estimates for NAs UW, then find an IMO that can... plenty of fish in the sea. Its not the IMO making the decision, its an underwriter as NA who is following their published guidelines.
     
  10. myinsurebiz
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    myinsurebiz Well-Known Member

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    LOL - I'm going back to SIWL, GI and Term . . .

    Gonna leave the UL stuff to you guys.
     

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