FE Agent, new to IUL

[IULs Rule]

Understanding IUL's means understanding you should always overfund them. They are an incredible tool for building wealth and creating Tax-Free income. Risk free investment with a death benefit.

 

[Sheryl J Moore]

That is incorrect @IULs Rule. I have developed more IULs than any single other person in this nation. One of the first that I ever developed was the nation's most competitive GUL product. It would be foolish to overfund a GUL, given that the entire objective is to get as much guaranteed death benefit, as possible, for your money. I have identified six primary pricing objectives, which are used in pricing cash value life insurance policies. These pricing objective include: 1. Where the primary focus of the product is in Advanced Sales Solutions (providing a solution that addresses a specific need, often tax-related), 2. Cash Accumulation (accumulating cash values), 3. Death Benefit (providing the most life insurance per dollar spent), 4. Guaranteed Death Benefit (providing a death benefit that is guaranteed for a specified time period), 5. Long Term Care (a.k.a. LTC, providing long term care benefits, in addition to the typical benefits associated with life insurance), 6. No Lapse Guarantee (providing a death benefit that is guaranteed to the insured’s age 100, or longer), and 7. Wealth Transfer (providing a vehicle for transferring assets to beneficiaries upon death). Only half of these objectives would be plausible with overfunding. SN: Please don't forget that taking loans out of IUL for retirement income creates a taxable event if the loan balance exceeds the cost basis of the policy. A good overloan protection rider can overcome this objection. Just wanted to clarify that in this example, the purchaser definitely would NOT receive "tax-free income." sjm

 

[Sheryl J Moore]

I would caution anyone to question what they "learn" about IUL on the internet. There are alot of people that feel they are experts, when they don't have it right themselves. I am a third-party expert; I do not endorse any company or product. If you want credible information, to help you learn about indexed life insurance @Jackl, check out any article that I have written on the subject. I have authored over 600 articles on indexed insurance products over the past 16 years, in addition to authoring books. You can find my educational content here: Sheryl's Articles Archives - Wink. SN: There is no such thing as "the best" carrier, much less "the best" product. If you need more help, don't hesitate to reach-out. It costs you nothing. [email protected] sjm

 

[Sheryl J Moore]

@rousemark - interest sensitive whole life was primarily a vehicle for 412(i) sales. And while that sale is pretty dead-in-the-water today, there are still companies offering interest sensitive whole life products. However, they are primarily used as the chassis for single premium life products. For example- Western-Southern Life's Legacy Forward. Pacific Life uses ISWL for a wealth transfer product, Flex 16. sjm

 

[Sheryl J Moore]

@bill3173 - was that the old AIG AG Advantage WL product? sjm

 

[Sheryl J Moore]

For what it is worth @Jakel - jumping out of the FE pool, and into fully-underwritten indexed life insurance is about as big of a leap as you can get when it comes to life insurance. I would not expect to master this is days, weeks, or months. You need a good, reliable source of educational content and a mentor. Who is your FMO? sjm

 

[rousemark]

@rousemark - interest sensitive whole life was primarily a vehicle for 412(i) sales. And while that sale is pretty dead-in-the-water today, there are still companies offering interest sensitive whole life products. However, they are primarily used as the chassis for single premium life products. For example- Western-Southern Life's Legacy Forward. Pacific Life uses ISWL for a wealth transfer product, Flex 16. sjm

They were sold for much more than that. A lot of them were sold for for family needs, business needs, all the things a regular WL was used for.

 

[Newby]

Does that mean the Premium is not guaranteed since the dividends are being used to reduce the premium charged?

The premiums are guaranteed. If you CHOOSE to use dividends to help reduce the amount of premium you pay out of pocket, that would never be guaranteed with any company. Since dividends are never guaranteed.

 

[DHK]

Yeah, I get that. But is it a guaranteed premium? I have heard of WL policies that have a "current premium" and a "guaranteed premium". Never seen one, but heard older agents mention them before.

That applies to non-participating whole life. They don't have dividends, but they can reduce the premiums in-kind.

 

[scagnt83]

That applies to non-participating whole life. They don't have dividends, but they can reduce the premiums in-kind.

No. This has already been addressed in this thread, it is an old product called "Interest Sensitive WL". It had an adjustable premium based on interest rates.

(I worked a lot of orphan cases in my early days, saw and heard about a lot of old policies from 70s/80s/90s)