IUL Vs 401k Calculator???

[scagnt83]

That may be the case with Midland, I really don't know because we write North American which is their sister company, same products and rates. I am told our comp is higher, but I haven't looked into Midland so I have no idea.

Lots of companies will offer direct contracts, but their production minimums are so high most are $100k - $250k) to get the same comp we offer that an individual producer cannot do that much with each individual company. That is why BGA's like us have to recruit hundreds of producers, we have to meet minimums with 20-30 companies!

Midland is truly Direct, no minimum production requirements. If you are contracted through an upline for Midland then you most definitely have a needless reduction in comp from street... unless they are just a super nice guy who likes to work for free.

NA is the IMO arm of Sammons. Life products are essentially the same (internal costs differ). Annuity products are not the same!

NA comp is higher for life on the front end. But Midland pays asset trails on their IUL plus renewals. So that is why the first year comp is lower... but the renewals/trails for Midland are very nice as the policy ages. It is especially nice for short pay clients where Renewals will be nonexistent after 8 or 10 years. It keeps that income coming in for life.

So it comes down to what you consider more important, 20% more income now, or a heck of a lot more income down the road....

 

[Nikita]

Midland is truly Direct, no minimum production requirements. If you are contracted through an upline for Midland then you most definitely have a needless reduction in comp from street... unless they are just a super nice guy who likes to work for free.

NA is the IMO arm of Sammons. Life products are essentially the same (internal costs differ). Annuity products are not the same!

NA comp is higher for life on the front end. But Midland pays asset trails on their IUL plus renewals. So that is why the first year comp is lower... but the renewals/trails for Midland are very nice as the policy ages. It is especially nice for short pay clients where Renewals will be nonexistent after 8 or 10 years. It keeps that income coming in for life.

So it comes down to what you consider more important, 20% more income now, or a heck of a lot more income down the road....

Is the Midland you are referring to here the same as Midland National? They do alot of FE don't they?

 

[Tahoe Ray]

Is the Midland you are referring to here the same as Midland National? They do alot of FE don't they?

I've not seen an FE product from any Sammons affiliate....that's not their market. (Not saying that it doesn't exist....)

 

[PinSeeker]

Dennis I have a program I believe is even better. Call me 800.966.4222 x303

Mike Brown

I went to a Midland presentation a few years back and they had a spreadsheet that compared a 401k (including matching from company, federal and state taxes- tax deduction at contribution and tax hit at withdrawal) as well as compound growth rate, etc. compared to an income tax free IUL income stream (and how much they would have to generate pre-tax).

I am a numbers guy, I work with engineers, it was a great tool to compare the two and show people how big of a tax hit they will get when they start withdrawing.

I have created a similar spreadsheet and am 80% of the way through but I can't figure out how to start and stop contributions....

Is anyone aware of a calculator that does this? If not, Are there any excel pro's who could help?

Thanks in advance,


Mennis

 

[PinSeeker]

I can help you with North American and Allianz. North American is a sister company to Midland. Plus, I have a great piece of software for 401k, SEP, IRA, or any qualified retirement replacement with IUL. Mike Brown 800.966.4222 x303

 

[ATM]

I have a contract with both Midland National and North American. The cheap term product is identical. Midland has another term product that is designed to be converted and has a conversion credit. Don't think NA has that.

The cheap Term UL product is sometimes the same but usually Midland is lower premium.

The IULs are very similar but are not the same. I haven't found a case where NA outperforms Midland yet. I know there are expense differences as well as crediting differences. I suspect that part of it is the costs of distribution through IMOs v. distributing direct to agents.

I've heard that NA comp is higher. That might be true if you get a 100% contract and write one or two cases ever but we write a decent amount of business and total comp with Midland is far better. They have a production bonus built on their base 95% payout and the bonus is paid on excess premium AND renewals (if you do enough business, around 75K/yr). We do 100k or so a yr in life production with them. That's a 20-25% bonus on top of the 95% payout. My renewals are 6% on IUL with the bonus and I get trail comp on cash values. My NA contract is around 2 - 2.25% renewals and no trails and first year is close to what we earn with Midland. Plus I don't have to add a layer of processing with an IMO. I submit direct and talk to my underwriter and get apps processed pretty quickly which helps the close ratio.

 

[Ebell]

Insmark is the best tool out there, once set up it generates it in few seconds.

 

[The Gimp]

There is a monthly fee for this but it might be what you are looking for. Video