Having Trouble Understanding the Cost of IUL?

[cowgoesMoO]

OK, So I have a prospect that is 45 years old, PREF. NT; Wants 300k in Perm.

I have run a MoO accum UL that puts him around 270/mo at target. CV is not the best but it almost breaks even in about year 20. over funding is certainly a viable option. When I run the quote through other carriers for an IUL. The cheapest thing I'm finding is around 425-450/mo. (trans, North AM., one other one that escapes me)

Maybe I'm doing something wrong. It is a brokerage that is new to me. But its still winflex which I am used to.

I've written a lot of accumULs, and I've also written a few FIA's, but I'm not understanding the cost difference between the two ULs; I would have assumed the premium would be very similar between the two policies.

any input would be greatly appreciated; I know there are some individuals on here that are the kings of IUL. Which is what I'd like to become someday *sighs heavily*

 

[Lewis_FL]

Target is not related to cost. IUL is just a current assumption UL with a different crediting method. Run a solve to 100. Your AccumUL takes $289/mo. AXA's Protect IUL only $220 at 4% ROR. Or get him a GUL for $185/mo and you don't have to worry about it.

 

[ATM]

Target is not related to cost. IUL is just a current assumption UL with a different crediting method. Run a solve to 100. Your AccumUL takes $289/mo. AXA's Protect IUL only $220 at 4% ROR. Or get him a GUL for $185/mo and you don't have to worry about it.

Or do Midland's No Lapse IUL. That 45yr olds premium would be $190/mo guaranteed not to lapse and it generates cash values, unlike most no lapse ULs.

If he wants more cash, pay more premium or use a product without the no lapse rider.

 

[cowgoesMoO]

These are the companies that I have access to through my brokerage. If anyone has the time, which one has the most attractive IUL from these guys....

Allianz
American Continental Life
American General
Assurity
Fidelity
Genworth
ING
LSW
North American
Old Mutual
Phoenix Life (Safe Harbor)
Protective Life
Transfamily Markets
United Home Life
West Coast Life
WRL (Alliance)

 

[Lewis_FL]

Not all those carriers have IUL. Of the ones we use, AG is ok. So is North American. We like AXA better. Very low cost/good CV plus they have a true LTC rider.

 

[VolAgent]

Target use to be target funding level for the policy. No longer.

All target means now is, this is the premium amount that is fully commissionable. Anything over that is paid as excess premium. Some companies offer a rolling target. That means that if the full target premium is not paid in the first year, then premium in the second year is paid at full FYC commission until the target premium is hit. If it isn't hit in 2 years, they don't give you the third year.

 

[scagnt83]

Not all those carriers have IUL. Of the ones we use, AG is ok. So is North American. We like AXA better. Very low cost/good CV plus they have a true LTC rider.

What are the specs on the LTC Rider? How does it compare to JH or Nationwide? Inflation protection?

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These are the companies that I have access to through my brokerage. If anyone has the time, which one has the most attractive IUL from these guys....

Allianz
American Continental Life
American General
Assurity
Fidelity
Genworth
ING
LSW
North American
Old Mutual
Phoenix Life (Safe Harbor)
Protective Life
Transfamily Markets
United Home Life
West Coast Life
WRL (Alliance)

Out of that list NA has the best IUL. Allianz is second on the list. ING (voya) has an excellent product but they have terrible financial ratings.

 

[cowgoesMoO]

After playing with it a bit, I am starting to get the hang of it. I was able to find a trans IUL for this prospect for around 200/mo that looks like it builds cash value beautifully.

I might have just been doing something incorrect initially to get those high premiums.

 

[Lewis_FL]

Somewhat similar. No inflation option but they do allow the rider on an Increasing DB policy.

 

[Sherwoodian]

Go with WRL's Increasing death benefit, and add the LTC rider. Its the largest selling IUL in America, for a reason.