We all know IULs are a ripoff

[phoenixlord]

When talking about the markets and averages you are discounting the market risk and inflation risk that you are exposed to with direct participation.
I would rather be capped with a credit guarantee from an institution that is heavily regulated with proven reserves than fully exposed in a taxable or even tax deferred account. But that is me. The IUL is a tool that can be used in the right circumstances to deliver better risk adjusted protection than simply leveraging assets elsewhere.

More bull cr*p
Right design, right circumstance, right client You can substitute "Right" with "Non-existent".

IULs don't work unless caps are high. If caps fall to single digits, IULs will implode even when funded "right" period. Index credits must exceed ever increasing expenses every year. Otherwise, they will be paid from the cash value. This is the same rat race majority Americans are in. They don't need another rat race. Now, are you going to say this is not for average Americans? Then you admit it's very risky.

Heavily regulated? The current look back period enforced by DOI is 30 days and IULs don't even credit anything until 1 year. By the time the client realizes that average returns shown on their illustration are bull crap and finds they can't get out because of surrender fee, hell will break loose. When the "Right" number of clients find themselves in this situation and "Right" attorneys file class action suits, "Right" justice will be served. You better come to your "Right" mind.

 

[rousemark]

Joe Biden is a ready made prospect for you.

 

[rousemark]

More bull cr*p
Right design, right circumstance, right client You can substitute "Right" with "Non-existent".

IULs don't work unless caps are high. If caps fall to single digits, IULs will implode even when funded "right" period. Index credits must exceed ever increasing expenses every year. Otherwise, they will be paid from the cash value. This is the same rat race majority Americans are in. They don't need another rat race. Now, are you going to say this is not for average Americans? Then you admit it's very risky.

Heavily regulated? The current look back period enforced by DOI is 30 days and IULs don't even credit anything until 1 year. By the time the client realizes that average returns shown on their illustration are bull crap and finds they can't get out because of surrender fee, hell will break loose. When the "Right" number of clients find themselves in this situation and "Right" attorneys file class action suits, "Right" justice will be served. You better come to your "Right" mind.

I sure am glad that you know more than all other agents, CPAs, Attorneys, etc. How do you keep so much knowledge in that little skull. My head would explode if I knew more than everyone else. As far as attorneys filing lawsuits, you can sue anyone for anything and that is how they get paid..

 

[phoenixlord]

I sure am glad that you know more than all other agents, CPAs, Attorneys, etc. How do you keep so much knowledge in that little skull. My head would explode if I knew more than everyone else. As far as attorneys filing lawsuits, you can sue anyone for anything and that is how they get paid..

I am not saying other agents don't know these things. I am only saying they are choosing to ignore them. Atleast, don't sell these as an insurance products. Sell them as exotic investments but only after maxing out their qualified accounts. Be sure to tell them they can't get out for 15 years and there is a good chance of cap reductions, lower participation rates and increased expenses. In spite of all these disclosures, if someone wants to buy these, it's their funeral.
But, who am I to tell you what to sell? I will leave it upto your good conscience. Nice meeting you all here. toodle pip!

 

[Lloyds of Lubbock]

Don't let the door smack you in the (_I_)!

 

[rousemark]

I am not saying other agents don't know these things. I am only saying they are choosing to ignore them. Atleast, don't sell these as an insurance products. Sell them as exotic investments but only after maxing out their qualified accounts. Be sure to tell them they can't get out for 15 years and there is a good chance of cap reductions, lower participation rates and increased expenses. In spite of all these disclosures, if someone wants to buy these, it's their funeral.
But, who am I to tell you what to sell? I will leave it upto your good conscience. Nice meeting you all here. toodle pip!

In the beginning you were complaining about their use as an investment tool and now you are saying don't sell them as insurance products but as exotic investments... Make up your mind which side of the bundle board you want to bed down on..

 

[marindependent]

I do not think that a lot (many, some) of insurance agents understand how Indexed Universal Life Insurance products work.

I think that the contractual language in them is beyond the understanding of most consumers.

 

[somarco]

I do not think that a lot (many, some) of insurance agents understand how Indexed Universal Life Insurance products work

Don't limit this to IUL.

There are quite a few agents selling all kinds of products they don't understand and can't explain how they work. Even something as simple as term life or Medigap is baffling to some.

And then there are non-agents who want to explain how they believe things work but end up making a big mess for the rest of us to clean up.

 

[Markthebroker]

And then there are non-agents who want to explain how they believe things work but end up making a big mess for the rest of us to clean up.

That can result with agents having many lost dollars.

 

[somarco]

That can result with agents having many lost dollars.

You mean there are more of them?