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Who told you.. They need to be flogged.
Best IUL 29 Yo Male, Preferred, Non-smoker, 100k/yr 15 Years
- Thread starter Bluefin646
- Start date
Who told you.. They need to be flogged.
Yes, I have 50 years of watching products come and GO
Fact 1) most non mutual companies were forced to become shareholder owned due to poor management decisions when the "magic solution" universal life came on the scene in the late 1970's to take advantage of 15% CD rates .
Simple fact is the better run mutual companies survived -
Fact 2) When they couldn't sell the product on projected high rates they played games with claims ---If you compare the illustrated mortality costs in later years of a --for example --J Hancock illustration to they are assuming death rates 30 % of what the tables predict --plus the routinely are illustrating an interest return much higher than policies previously sold.(and often drop that higher rate when new policies come out At the end of a recent seminar on IUL they said "We have enhanced the mortality to make the policy more competitive."
Fact 3) If you want information on your mutual policy call and get an illustration in 10 minutes the stock companies take 2 weeks and it is often wrong. Profits are enhanced by poor service
Fact 4} the typical buyer moves into the market with I U L after the market has seen most gains and the sale and lapse percentages of IUL and UL cause distortions in claims and ultimate returns
I sold a Whole Life policy for 20,000 in 1969 to a 42 year old who died at 82 and the policy with a mutual company paid 176,000 claim. about the same return as the S&P Stock policy would have cost a little less but paid 20,000.
Fact 1) most non mutual companies were forced to become shareholder owned due to poor management decisions when the "magic solution" universal life came on the scene in the late 1970's to take advantage of 15% CD rates .
Simple fact is the better run mutual companies survived -
Fact 2) When they couldn't sell the product on projected high rates they played games with claims ---If you compare the illustrated mortality costs in later years of a --for example --J Hancock illustration to they are assuming death rates 30 % of what the tables predict --plus the routinely are illustrating an interest return much higher than policies previously sold.(and often drop that higher rate when new policies come out At the end of a recent seminar on IUL they said "We have enhanced the mortality to make the policy more competitive."
Fact 3) If you want information on your mutual policy call and get an illustration in 10 minutes the stock companies take 2 weeks and it is often wrong. Profits are enhanced by poor service
Fact 4} the typical buyer moves into the market with I U L after the market has seen most gains and the sale and lapse percentages of IUL and UL cause distortions in claims and ultimate returns
I sold a Whole Life policy for 20,000 in 1969 to a 42 year old who died at 82 and the policy with a mutual company paid 176,000 claim. about the same return as the S&P Stock policy would have cost a little less but paid 20,000.
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If Rickie says mutual WL is the way to go then he must be right. After all, he sold a policy in 1969.
Rick
Rick
I've been waiting about three weeks for an in force illustration from a mutual insurance company. I've contacted them a few times about it; they keep telling me it takes up to 14 business days to deliver the in force...
I've requested in force illustrations for several policies from all the well known mutuals and I've never gotten one in 10 minutes.
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- Thread starter
- #48
Bluefin646
Expert
- 41
Gents,
Good evening.
NA Iul, what are the caps, floors etc? O-13%, but 13 can go down to what %?
Good evening.
NA Iul, what are the caps, floors etc? O-13%, but 13 can go down to what %?
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Run your own illustrations and then read the illustration and you will know.
Are you asking if the company change the caps (or participation rates)? Meaning right now caps are at say 13%, but in the future the cap could be lower?
If so, the answer is Yes they can (and do) adjust caps and par rates on their products. NA recently adjusted some of theirs. They can go up or down, based on what the company needs them to be.
If you are asking what are all the various caps/par rates of the various indexing options, you'll have to run the illustration to see.
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