Any Feedback On The Nationwide Insurance IUL?

[scagnt83]

Thanks. I didn't realize the max was that low. I really thought I remember seeing ones with rates/indices quoted higher. I am familiar with the "current" or "illustrated" -- but aren't some of these showing the "hypothetical" or "back-tested" numbers based upon some index or formula-referenced index? I saw one crazy illustration, funded for 5 years, tied to a formula/index, and it showed wonderful, amazing results. I have to see if I kept that one, LOL. Thanks again.

I think that is part of the issue. Some carriers are not including parts of the multipliers in the credited rate on the illustration, giving them a much higher illustrated rate.

That is why they are crafting AG49B if I understand it correctly.

Anyone expecting over 7% indexed returns long term is going to be let down on any IUL. jmo

---

Current Rate is the current index rate credited to the policy.

Illustrated Rate is what the illustration shows... which traditionally has been the credited rate... but if carriers dont include the bonus in the credited rate then they are not the same.

---

The hypothetical backtesting is not really a factor. I think they actually force the hybrid indexes to utilize the traditional S&P 500 for backtesting if I remember right.

 

[Tahoe Ray]

Anyone expecting over 7% indexed returns long term is going to be let down on any IUL. jmo

That is a fact. Not an opinion.

The hypothetical backtesting is not really a factor. I think they actually force the hybrid indexes to utilize the traditional S&P 500 for backtesting if I remember right.

They armchair quarterback these indices and present them as such.

I'm not sure what you mean about this. Maybe I'm confusing iul w FIA but most of these indices specifically pump their numbers vs. The s&p.

 

[scagnt83]

I'm not sure what you mean about this. Maybe I'm confusing iul w FIA but most of these indices specifically pump their numbers vs. The s&p.

Im speaking about the max allowed credit rate on an IUL per regulation AG49A.

If I remember right, they use the S&P yp2pw/cap as the historical basis for the hybrid index returns.

 

[Tahoe Ray]

Im speaking about the max allowed credit rate on an IUL per regulation AG49A.

If I remember right, they use the S&P yp2pw/cap as the historical basis for the hybrid index returns.

That makes sense. I thought that you were referencing historical performance, not illustrated rates.

 

[jtow11]

Seems like a WL with dividends would be a safer option for retirement income supplement as opposed to a IUL? However no Living Benefits on mist WL.

 

[Tahoe Ray]

Seems like a WL with dividends would be a safer option for retirement income supplement as opposed to a IUL? However no Living Benefits on mist WL.

Guardian has a WL plan with both disability (not waiver, real disability) and ltc.

The problem with any living benefit on a cash value focused policy is that to max cash, you're trying to minimize the DB. All of these benefits are based on the DB.

You can't do both well so focus on the main need and anything else is gravy.

 

[PrivClientSG]

Seems like a WL with dividends would be a safer option for retirement income supplement as opposed to a IUL? However no Living Benefits on mist WL.

That's an entirely different issue, and like anything client specific. Utilizing life insurance for cost/consumption recovery, replacement, whatever you want to call it, is a very good use of life insurance. You can do this from a death benefit or living benefit type of situation. Does it help if both have a guarantee? Absolutely in my opinion. This is how life insurance is utilized in the corporate world (NQDC). I am not sure what "living benefit" you are referring to or looking for -- but what you have with WL is cash value, guaranteed cash value, and yes, as you said, dividends.

However, while you have cash value, once you start relying on the life insurance to "fund" additional liabilities that a client may face -- LTC for example -- there will be additional costs, and it will impact both the cash value and the death benefit. Good luck with the client/case!

 

[scagnt83]

I am not sure what "living benefit" you are referring to or looking for

They are speaking about living benefits derived from the DB.

Terminal Illness acceleration is common.

Chronic Illness is the new popular "living benefit". It allows DB acceleration if Chronically Ill (LTC) (see my above posts explaining the nuances of them). There is a long list of IUL/GUL carriers offer this now... a few WL carriers do.

There are some policies that allow acceleration for a Critical Illness (heart attack, stroke, etc). This is available mostly through IUL/GUL/Term. I only know of 1 WL carrier who has this (Ameritas)

Those are mostly an acceleration of the DB. Some LTC Riders (Guardian/Mass) provide a separate pool of benefits in addition to accelerating DB.

Now there are a few that offer a separate pool of benefits for DI. Guardian and Assurity are the two I know of. Guardian has it on WL, Assurity on Term. They are both new products.

 

[PrivClientSG]

They are speaking about living benefits derived from the DB.

Terminal Illness acceleration is common.

Chronic Illness is the new popular "living benefit". It allows DB acceleration if Chronically Ill (LTC) (see my above posts explaining the nuances of them). There is a long list of IUL/GUL carriers offer this now... a few WL carriers do.

There are some policies that allow acceleration for a Critical Illness (heart attack, stroke, etc). This is available mostly through IUL/GUL/Term. I only know of 1 WL carrier who has this (Ameritas)

Those are mostly an acceleration of the DB. Some LTC Riders (Guardian/Mass) provide a separate pool of benefits in addition to accelerating DB.

Now there are a few that offer a separate pool of benefits for DI. Guardian and Assurity are the two I know of. Guardian has it on WL, Assurity on Term. They are both new products.

Got it. TI, CI, an accelerated access to DB is very common today. I view LTC as separate and distinct. I also view an LTC rider (which has a cost from date of issue) with a pool of money, different than accessing DB for LTC reasons (if a carrier offers that). Guardian's new product is rolling out now and I already missed the first two invites/web meetings I got invited to, LOL.

 

[scagnt83]

Got it. TI, CI, an accelerated access to DB is very common today. I view LTC as separate and distinct. I also view an LTC rider (which has a cost from date of issue) with a pool of money, different than accessing DB for LTC reasons (if a carrier offers that). Guardian's new product is rolling out now and I already missed the first two invites/web meetings I got invited to, LOL.

Its the L99 product with LTC Rider & true DI rider. Up to $5k/5y max on the DI, no occ class, white collar only, they provide a list of included/excluded occupations. Modified Own Occ (Guardians normal definition of 2years true and the rest modified).

LTC Rider has been revamped a bit on all products. Allows for a higher monthly benefit and does not put the LTC pool increase just on the number of months covered.

Its a new product that is distinct from L99, but its the same exact WL as L99, just with a built in LTC/DI Rider.