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Old 05-25-2011, 10:25 AM   #1
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Brokers Alliance on IUL Errors & Omissions
 
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I was sent a link to a video presentation on the tax advantages of a non qualified IUL income alternative to qualified plans. As you know, we sell a significant amount of IUL premium for supplemental retirement income. So I'm a huge fan of IUL for tax advantaged income, especially of NACOLAH.

What I'm not a fan of is the swiss cheese promo presentation fraught with misstatements and unaddressed items that devalue life insurance and give us all a bad name. Here are justa few:

You have to declare that this is life insurance and not wait well into the presentation and/or bury it all together. You can't compare a employer matching qualified plan to a non qualified IUL and make sweeping statements that IUL is superior net of all taxes.

You can't say that an IUL in a down marketing will never lose money when in fact during the S&P downturn of 2001-2003, IUL policies lost money on the policy expense charges that ranged from 200-300 basis points. That's a compounded loss of 2-3% each year.

Just trying to keep it real.

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Old 05-25-2011, 11:02 AM   #2
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IUL Errors & Omissions Re: IUL Errors & Omissions
Insurance agents misleading people? Nah, that would never happen...

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Old 05-25-2011, 11:08 AM   #3
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IUL Errors & Omissions Re: IUL Errors & Omissions
I posted this yesterday on another thread but per Calsurance, E&O claims associated with the sale of life products was up 34.55% in 2010 with the most common allegation being: "misrepresentation by providing erroneous description"
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Old 05-25-2011, 11:17 AM   #4
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WinoBlues on IUL Errors & Omissions
 
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IUL Errors & Omissions Re: IUL Errors & Omissions
Reminds me of the early UL days.

Originally Posted by healthagent View Post
I posted this yesterday on another thread but per Calsurance, E&O claims associated with the sale of life products was up 34.55% in 2010 with the most common allegation being: "misrepresentation by providing erroneous description"

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Old 05-25-2011, 11:54 AM   #5
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IUL Errors & Omissions Re: IUL Errors & Omissions Brokers Alliance is the thread starter for: IUL Errors & Omissions

Wow, thanks for the info on Cal. Good stuff.
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Old 05-25-2011, 11:57 AM   #6
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IUL Errors & Omissions Re: IUL Errors & Omissions
Reminds of of an agent I spoke with a while back. Good guy, wrong training. He was taught that "life" was a four letter word - not to be spoken during the presentation.
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