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So LFG has their new TIUL (Treasury IUL).
Technically I would call it a TGIUL (treasury guaranteed iul)
I am still getting my head totally around this product, but they might be on to something here.
Here are Lincolns words about it:
"If you have clients who want guaranteed protection now and opportunities to benefit if the 10-year Treasury yield rises, consider Lincoln Treasury Indexed UL.1 It's affordable, guaranteed indexed universal life insurance that can get better based on 10-year Treasury performance.
With Lincoln Treasury Indexed UL, your clients get guaranteed death benefit protection and affordable level-pay premiums. They choose the length of their initial guarantee, and if the 10-year Treasury yield exceeds minimum levels, they have an opportunity to extend their guaranteed protection up to a lifetime.2
Lincoln Treasury Indexed UL gives you the competitive advantage of having an innovative solution like no other on the market."
First, you choose the Guarantee period, from 10 years to Lifetime.
Obviously premium is based on the initial guaranteed period.
The policy is guaranteed 4% Crediting currently.
Then, if the 10 year Treasury is over 2% for the policy year, you can earn Credits that can go towards reducing your premium, extending your guaranteed period, or it can stay in the policy (CV), or it can be refunded to you as a return of excess premium. (WL guys, does this remind you of the different dividend options on WL?!)
LFG is pitching this as a possibly cheaper alternative to traditional GUL. Thinking that with low rates the treasury play should work out well for clients.
I like seeing the return of being able to choose your guarantee period.
But Im not sure if this is true innovation or another way to transfer what has traditionally been the Insurance Companies risk, to the client.... and by default us agents...
Technically I would call it a TGIUL (treasury guaranteed iul)
I am still getting my head totally around this product, but they might be on to something here.
Here are Lincolns words about it:
"If you have clients who want guaranteed protection now and opportunities to benefit if the 10-year Treasury yield rises, consider Lincoln Treasury Indexed UL.1 It's affordable, guaranteed indexed universal life insurance that can get better based on 10-year Treasury performance.
With Lincoln Treasury Indexed UL, your clients get guaranteed death benefit protection and affordable level-pay premiums. They choose the length of their initial guarantee, and if the 10-year Treasury yield exceeds minimum levels, they have an opportunity to extend their guaranteed protection up to a lifetime.2
Lincoln Treasury Indexed UL gives you the competitive advantage of having an innovative solution like no other on the market."
First, you choose the Guarantee period, from 10 years to Lifetime.
Obviously premium is based on the initial guaranteed period.
The policy is guaranteed 4% Crediting currently.
Then, if the 10 year Treasury is over 2% for the policy year, you can earn Credits that can go towards reducing your premium, extending your guaranteed period, or it can stay in the policy (CV), or it can be refunded to you as a return of excess premium. (WL guys, does this remind you of the different dividend options on WL?!)
LFG is pitching this as a possibly cheaper alternative to traditional GUL. Thinking that with low rates the treasury play should work out well for clients.
I like seeing the return of being able to choose your guarantee period.
But Im not sure if this is true innovation or another way to transfer what has traditionally been the Insurance Companies risk, to the client.... and by default us agents...
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