Download My 42-Slide Yale PowerPoint Presentation
To download the presentation I’m using for the Yale Club meeting, click on the following:
https://advisorshare.com/iul-yale-presentation
I was asked to be a guest speaker at the Yale Club Insurance Study Group(yes, the “Yale” you are thinking of) for Monday, October 7th.
This study group is made up of advisors who know insurance products well and who are mostly Whole Life (WL) Kool-Aid drinkers (and if not Indexed Universal Life (IUL) haters, advisors that are extremely skeptical of IUL).
I was asked to create a presentation on the pros and cons of IUL which I’ll present and then I’ll take questions from attendees (who will most likely question my content and will try to tell me I’m wrong and why WL is a superior product).
What’s in my presentation?
-How IULs are designed and priced to provide good rates of return with no risk of loss
-Cap discussion with examples of companies that dump caps
-Explaining what a reasonable rate of return should be over time with an IUL and why
-IUL vs. VUL
-A discussion about AG-49 and illustration abuses
-How to properly illustrate any cash value life policy so the client gets the best outcome
-IUL indexing strategies
-Participating loans (aka…variable loans)
-I cover “net amount at risk” (and why that prevents high costs of insurance in IULs)
-A few IUL illustration examples using various rates of return (and wash loans)
-I discuss dividends, why the crediting of returns in a WL policy is like a black box, and the fact that historically the illustrated dividends are significantly less than what is actually credited
-A 1035 example (WL to an IUL) where tax-free borrowing increased by over 200%
-IUL vs. guaranteed UL vs. WL for death benefit planning
My conclusion from the presentation is pretty simple:
If WL is an inferior for cash flow and more expensive for DB, what use is there for WL?
Supporting content used in my presentation
IUL Rate of Return Probability Chart
25-year rolling numbers with caps between 6% and 13%
To download the IUL probability of return chart, click on the following link:
https://advisorshare.com/iul-probability-of-return
Actual IUL Historical Renewal Cap Rates (info everyone has been waiting for)
To download the renewal cap history of the top 18 Indexed Universal Life (IUL) carriers, click on the following link:
https://advisorshare.com/iul-renewal-cap-rates
IUL Commission Handbook
To download the 23-page IUL Commission Handbook, click on the following link:
https://advisorshare.com/iul-commission-handbook
This handbook has numbers when selling level death benefit vs. increasing death benefit policies to clients (level = maximum commission for agent when run at the MEC minimum). It also helps advisors determine if the IMO they are working with is cheating them out of commissions.
