In today’s constantly changing life product marketplace, it can be a challenge to keep up with changes to products that we are familiar with, let alone learn how to apply a product that is “new on the block.”
With a little information, it’s easy to move beyond your comfort zone and add more options to your client offerings, with great success. If you have a focus on UL, you should know that both UL and IUL have similar insurance charges (surrender charges, cost of insurance, premium loads, and per thousand charges). Both also have minimum guarantees and flexibility in death benefits and premium payments. Many producers, perhaps yourself included, sell the value of No-lapse Guarantees – this feature too is offered on some Index ULs. As with many UL product offerings, Index Universal Life policies are available in single life, survivorship and even single premium versions.
The value proposition Index Universal life poses compared to traditional UL is the opportunity IUL offers for greater upside potential interest crediting. A traditional UL may credit 4% to 6%.
The minimum guarantee on some IULs may be 1, 2 or more percentage points lower than traditional Universal Life products.
Index UL is designed to help clients realize higher upside potential that a traditional UL does not offer while protecting a client from some of the downside potential that a Variable UL can expose that client to.
Every potential life insurance sale has its own characteristics, and needs to be carefully evaluated, but taking time to educate yourself on the virtues of Index UL can expand your UL offerings and help you more readily address your clients’ risk tolerances and goals.
Marketing materials created by our carriers to help make it easier for you to present IUL’s to your clients.
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