2019 is the year of the IUL. To quote the recent Lego movie soundtrack, “Everything is awesome.” We’ve heard the rumors about the anticipated additions and new features to come in 2019, but we’ve have one more instore for our advisors. We’re pleased to announce the addition of Pacific Life to the CreativeOne breadth of life carriers.
As we approach Q2 and look at product additions and updates in accumulation and protection products, it’s clear nothing is going to stop the aggressive growth in this market space. If you’re not having regular accumulation strategy discussions with your clients, let us help you explore how to present opportunities. Here are just a few areas where we’re seeing opportunities:
We’re pleased to announce that as of this month, we’re offering Pacific Life to our carrier offering. You’ll see some updates between their formerly Pacific Discovery Xelerator IUL (PDX) vs. PDX2 product. In a direct comparison, you’ll find the percentage of annual income illustrations are illustrating a little higher on the PDX2 with the exception of a few cells on preferred smoker rates on males and females between 40 and 50 years of age. A few of the key features include:
- One fixed account and seven indexed accounts.
- Guaranteed minimum annual interest rate of 0% in indexed accounts and 2% in the fixed account.
- 2% cumulative interest guarantee or termination.
- Optional riders to guarantee no-lapse protection up to lifetime, add long-term care or chronic illness protection and increase early cash surrender values.
Lincoln’s announced two new IULs to the market this year. Now that we’ve run multiple illustrations and seeing what their new accumulation product can do, the accumulation product is extremely competitive. It’s clear Lincoln has modeled elements of their #1 VUL One and then used this in a three-tier index account options. What you’ll also find is increased flexibility to capture market growth now and flexibility to modify indexed account elections.
Executive Rider: Lincoln allows business owners to reposition current company assets to purchase life insurance, while still maintaining cash surrender value equal to 100% of premiums paid. It’s also a great solution to borrow money to finance premiums and can provide a critical value to qualify for premium financing loans. Take a look »
Fidelity & Guaranty Life
FG Life-Elite fixed indexed universal life product allows clients to choose from several options for earing interest on account values: fixed interest and additional options tied to market indices. Notably, they offer two death benefit options: the face amount of the policy, or the face amount plus your account value. Death benefits may be taken as a lump sum or periodic payments. This is an ideal option for spend thrift children. Take a look at the Life-Elite consumer guide.
The Value Protection IUL has an excellent underwriting program for ages 54 and that qualify for express issue. They’re also one of the few express issue programs who offer up to $2 million. Most producers aren’t aware all of their IULs have two types of chronic illness. One is included in the policy, free to your client and without underwriting – discount net loaded. The paid rider offers chronic illness equaling 2-4% of death benefit on a monthly basis. The rider provides an indemnity income benefit (will not require receipts).
Has gone through some significant product updates at the close of last year. They’re back in the market and their non-med program is an ideal fit for grandparents gifting as well as business owners who don’t offer qualified plans. The Max Accumulation + IUL non-med option is available from ages 0 to 50 and go up to a penny less than $500k along with the option to add a chronic illness rider. If clients pass big-data review without Part B … there can be as little as an eight-day turnaround on contracts. AIG Non-Med IUL »
Dive Deeper Into IULs
We offer a complete suite of IUL carriers. Here’s a quick recap on some of our IUL product features including market indices, participation rates, index crediting strategies and riders. See how they stack up »
Related terms: Life