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- #11
If he is recommending a policy that will lapse if the index does not hit 6.3% each year then he is not a knowledgeable agent at all... he is the exact opposite of a knowledgeable agent when it comes to IUL.
A UL policy (including IUL) is also called a "flexible premium universal life insurance policy". You can pay whatever premium you want to. There is no "set" premium that you must pay. You can pay the same premium and drop the DB down to the MEC limit. Dropping the DB does not effect the premium.
You could not pay me enough to sell a policy that would lapse if it did not get 6.3% per year. That is a disaster waiting to happen and no single client is worth an E&O claim. Find an agent that knows what they are doing.
If DB is your main concern then layer a term policy on top of a max funded IUL. Or choose an IUL that offers a term rider. If CV is your main goal then you need to figure out what premium you can afford and drop the DB down to the MEC limit.
Either way I suggest finding a new agent who knows what they are doing. if they proposed that policy to you then they do not know what they are doing when it comes to IUL. That policy is not anywhere close to being properly designed.
Is this guy a friend or relative?
Neither! just someone I looked up who is in our city. Do you deal with North American policies? could you help me?
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