Not everyone can be as "enlightened" as you.Yeah, the things about IULs that bother me doesn't bother most agents and that bothers me even more.
Never sell IULs to one of these two types of clients
- Thread starter phoenixlord
- Start date
- 10,330
The ignorance is just astounding.... lol. Those who bash an entire group of anything without citing just evidence only prove their lack of knowledge on the issue.
A properly designed IUL from a quality carrier is a perfectly appropriate product for a client with the correct set of goals and needs.
Any agent that has actually studied the product in various return scenarios and expense scenarios knows this.
But not all agents know how the product actually works and how to design it in a proper manner for a client. WL is *** proof... any *** with a license can sell it without causing major financial harm to the client. IUL is the opposite.
Ive worked tons of old UL policies from the 70s/80s/90s. The ones that crashed were minimally funded... aka.. a horrible design using outrageous assumptions for returns.
But there are tons of old ULs that performed perfectly fine, are not imploding, and are not at risk of imploding. In fact, some of them have extremely competitive guaranteed interest rates.
UL (especially IUL) is the most complicated life insurance product that exists. It takes a knowledgeable agent who is fully educated about the product to sell it in an ethical and suitable manner.
I will be the first to admit there are a lot of IULs being sold that are designed horribly and in the best interest of the agent, not the client. Ive had to clean up some of those messes and its a terrible thing to see.
So its certainly an issue within the industry. And I do expect to see class action suits against carriers. Mainly because most fail to vet the design of the policy and dont seem to care if its set to implode or not. (Sammons immediately comes to mind for me on that one)
But like any tool, in the hands of the wrong person its very dangerous. In the hands of a true professional, used for the right reasons, it can add extreme value to a situation.
BTW, consumers see right through extreme bashing of products and look down on agents who act that way.
A properly designed IUL from a quality carrier is a perfectly appropriate product for a client with the correct set of goals and needs.
Any agent that has actually studied the product in various return scenarios and expense scenarios knows this.
But not all agents know how the product actually works and how to design it in a proper manner for a client. WL is *** proof... any *** with a license can sell it without causing major financial harm to the client. IUL is the opposite.
Ive worked tons of old UL policies from the 70s/80s/90s. The ones that crashed were minimally funded... aka.. a horrible design using outrageous assumptions for returns.
But there are tons of old ULs that performed perfectly fine, are not imploding, and are not at risk of imploding. In fact, some of them have extremely competitive guaranteed interest rates.
UL (especially IUL) is the most complicated life insurance product that exists. It takes a knowledgeable agent who is fully educated about the product to sell it in an ethical and suitable manner.
I will be the first to admit there are a lot of IULs being sold that are designed horribly and in the best interest of the agent, not the client. Ive had to clean up some of those messes and its a terrible thing to see.
So its certainly an issue within the industry. And I do expect to see class action suits against carriers. Mainly because most fail to vet the design of the policy and dont seem to care if its set to implode or not. (Sammons immediately comes to mind for me on that one)
But like any tool, in the hands of the wrong person its very dangerous. In the hands of a true professional, used for the right reasons, it can add extreme value to a situation.
BTW, consumers see right through extreme bashing of products and look down on agents who act that way.
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Be careful...he's going to have to start a third thread on this topic because you're "attacking" him.
- 5,290
I actually went to the FBI website, and it says that more people are killed with hammers than assault rifles.
Does that make hammers bad?
Just thought I'd throw that in.
Carry on.
- 5,290
Troublemaker... Trying to confuse the issue with the facts..
- 5,778
@phoenixlord ... quick and serious question, would I be correct in assuming one of the following two scenario's?
- You have been personally damaged because of a purchase of a product like this.
- you have hurt a client because you improperly suggested this type of investment.
- 11,278
SJW's don't need a reason to be triggered.
- 10,330
Or, he is a captive agent brainwashed by one of the major mutual carriers and just learned about the "evils" of IUL and how to sell against it. Now the whole room of trainees are out to save the world and ensure everyone has a "high quality" policy.... from their company... LOL
- Thread starter
- #20
phoenixlord
Expert
- 55
Ok Mr.Worldwide expert of everything, I see the same old, same old. Why don't you address the real issues of IUL that I have raised.
Let's say you put in a client of your's in a properly designed IUL and he needs to get out. (Let's say covid happened and he can't get a job for 2 or 3 years or the carrier reduced the cap rates ridiculously and he is mad and wants out or some other reason). How would you get him out when you have those surrender fees?
With properly designed whole life, he may still lose some money but atleast he can get out without losing everything. Whole life is not perfect transfer of risk either but better than IUL, if designed properly. I have seen Idiots design whole life just like IUL and that's a different story. A true transfer of risk is a term policy and investing the difference and now arse h*les here will assume that I am Dave Ramsey's follower.
Ta Ta! Cheerio!
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