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LIMRA just posted 2010 sales results......seems to me if it wasn't for this product industry sales would have been pretty flat.
Equity Indexed UL
- Thread starter crimsontideagent
- Start date
- 436
...update to my previous post, through the first two quarters of 2011 IUL sale's have continued to explode....rumors are that some of the mutual's beside Penn are contemplating a product. I find this hard to believe considering the massive impact it could potentially have on the use of whole life at all in estate-planning and business planning scenerios...where sales of whole-life have already been seriously reduced in the past 10 years, substituted by UL variations.
Obviously, the insurers leave wiggle room in the event the numbers start going the awry. The cap is where the companies can and do adjust their exposure. It would be counter to the company owner's (stock or mutual) interest to not put some safegaurd in place with such a high volume product. As with ALL products, the companies could drop to the minimum guaranteed crediting and possibly raise costs.
Want contractual guarantees on cash? Then the IUL probably does not suit you.
Want to minimally fund the policy? The IUL probably does not suit you.
Know your client, and ensure that they understand how any policy works.
Why are the other mutuals considering jumping in with Penn? So that they'll have a competitive product, when they have to compete against an IUL. Of course, I'm sure they'll continue to "encourage" the sale of their WL products.
Want contractual guarantees on cash? Then the IUL probably does not suit you.
Want to minimally fund the policy? The IUL probably does not suit you.
Know your client, and ensure that they understand how any policy works.
Why are the other mutuals considering jumping in with Penn? So that they'll have a competitive product, when they have to compete against an IUL. Of course, I'm sure they'll continue to "encourage" the sale of their WL products.
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We recommend IUL for supplemental income scenarios (not for indemnification), where the death benefit is minimized and the insured is generally female because of the cheaper COI charges.
Here are the income IUL players based on proposals at 8%:
NACOLAH
Allianz
LSW
Lincoln Financial
Pac Life
ING
AVIVA
Penn
Minn Mutual
Here are the income IUL players based on proposals at 8%:
NACOLAH
Allianz
LSW
Lincoln Financial
Pac Life
ING
AVIVA
Penn
Minn Mutual
I've been providing IUL's since 2005, to my more affluent clients.
I rec'd a call today from one of them, thanking me for suggesting she move money she was over funding her 401k with and max fund her IUL.
The results over the past 3 years have been impressive, I only wish these were available when I was in my 30's.
If the tax codes stay as is, she's on pace for a very nice Tax-Free supplemental retirement.
I agree these are not for most of our clients, but for those that CAN fund properly, it's the safest and most effective way to build tax-free income growth.
Just my opinion.
I rec'd a call today from one of them, thanking me for suggesting she move money she was over funding her 401k with and max fund her IUL.
The results over the past 3 years have been impressive, I only wish these were available when I was in my 30's.
If the tax codes stay as is, she's on pace for a very nice Tax-Free supplemental retirement.
I agree these are not for most of our clients, but for those that CAN fund properly, it's the safest and most effective way to build tax-free income growth.
Just my opinion.
indexedannuity_girl
Expert
The truth is that ALL insurance companies that are not currently offering indexed life are currently researching that possibility.
Sales of variable products decline along with the drops in the market. Typically, sales just switch over to the fixed side of the house at such times. However, with fixed rates being so low, these companies are seeing their assets fly out-the-door.
There are many insurance companies that have bad-mouthed indexed insurance products in the past. Today, they are looking at rolling-out IUL to their distributions. sjm
Sales of variable products decline along with the drops in the market. Typically, sales just switch over to the fixed side of the house at such times. However, with fixed rates being so low, these companies are seeing their assets fly out-the-door.
There are many insurance companies that have bad-mouthed indexed insurance products in the past. Today, they are looking at rolling-out IUL to their distributions. sjm
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