3 Pay NA IUL and Expense Report

[pbar]

My point is that this is easily obtained if you know what you are doing. Your IMO should easily be able to do this for you if you cant... or you could have called NA's inside sales desk and they could have done it for you.

And since you did not provide the required info to run a UL illustration, it makes me think that you dont know what you are doing in this situation... but please feel free to tell us the whole story.

The thing is I am not an agent yet and this is for my own policy. I took it out 2 years ago and that agent is not around. I will be taking the state exam soon but meanwhile, I am working on my own policy.

 

[scagnt83]

The thing is I am not an agent yet and this is for my own policy. I took it out 2 years ago and that agent is not around. I will be taking the state exam soon but meanwhile, I am working on my own policy.

Is the agent out of the business now? (big problem in this industry)

But now that you have fully explained; a new illustration is not what you need.
You need an inforce illustration that shows the expense structure that was in place 2 years ago. They have changed the product since then.

Call NA and ask for an in-force expense report.

 

[pfg1]

pbar, make sure you take the time to learn alot about IUL. No such thing as a paid up in full in 3yrs IUL policy. Not sure if that was how it was sold to you, but that is not true. It could be designed that over that 3yrs you have maxed out the initial premium that you can dump into the policy, but again at some point you'll be able to put more in. Expenses keep being paid out of the policy, whether you pay a premium or not. You could possibly reduce the DB down to lower the expenses. Agree with the others, get an inforce illustration & expense rept and have someone from the company explain it to you.

 

[pbar]

pbar, make sure you take the time to learn alot about IUL. No such thing as a paid up in full in 3yrs IUL policy. Not sure if that was how it was sold to you, but that is not true. It could be designed that over that 3yrs you have maxed out the initial premium that you can dump into the policy, but again at some point you'll be able to put more in. Expenses keep being paid out of the policy, whether you pay a premium or not. You could possibly reduce the DB down to lower the expenses. Agree with the others, get an inforce illustration & expense rept and have someone from the company explain it to you.

Thanks for the reply. It helped me. The way it was explained to me is that 3 pays of 75k returning 6.3% annually on average will keep the DB of 3 million in force until my age 121. Not only that, it will generate substantial cash value which I can tap into as a wash loan in my retirement.

Any average return less than 6.3% annually will lapse the policy between the ages of 65 and 121. At 3% guaranteed return, it will lapse at 65 which scares me. That's why I am trying to figure out the policy expenses and try and minimize them by reducing the DB(not sure if I will lose money in surrender fees?).

When I log into the NA site, it does show $500 as monthly charges. Not sure if that is the policy expenses.

 

[just some f.e.llow]

Thanks for the reply. It helped me. The way it was explained to me is that 3 pays of 75k returning 6.3% annually on average will keep the DB of 3 million in force until my age 121. Not only that, it will generate substantial cash value which I can tap into as a wash loan in my retirement.

Any average return less than 6.3% annually will lapse the policy between the ages of 65 and 121. At 3% guaranteed return, it will lapse at 65 which scares me. That's why I am trying to figure out the policy expenses and try and minimize them by reducing the DB(not sure if I will lose money in surrender fees?).

When I log into the NA site, it does show $500 as monthly charges. Not sure if that is the policy expenses.

I've never been over to the consumer facing site, but $500 is almost certainly the total monthly charges, bundled. So the cost of insurance, policy expenses and policy fees are all totaled up to give you that number.

 

[pbar]

I've never been over to the consumer facing site, but $500 is almost certainly the total monthly charges, bundled. So the cost of insurance, policy expenses and policy fees are all totaled up to give you that number.

Thank you so much!!!!

Can the insurance company provide a break down of this bundle?

Can they also provide likely future monthly expenses?

As per my agent, there wont be any policy fees and expenses after 10 years in force. Is this true?

How will COI change after 10 years? will it stay fixed like term policy for x number of years? The idea is to decrease the COI by building CV by then.

 

[scagnt83]

Thank you so much!!!!

Can the insurance company provide a break down of this bundle?

Can they also provide likely future monthly expenses?

As per my agent, there wont be any policy fees and expenses after 10 years in force. Is this true?

How will COI change after 10 years? will it stay fixed like term policy for x number of years? The idea is to decrease the COI by building CV by then.

Call the company and ask for an "inforce illustration with expense report". it will show you what you have paid and will pay.

There are 3 types of expenses; COI, Premium Load, Admin.
Premium Load stops when you stop premiums or after year 10.
COI never stops and increases each year as you age until you reach 100.
Admin reduces by about 90% after year 10, but it is based on the CV.

Long story short your agent didnt know what they were talking about.