Let me start off by stating very clearly that there is not a best product that works for every client. What’s the best solution is subjective based on the client’s goals, product features, underwriting and carrier strength. So I admit that identifying the “best” IUL is impossible.
However, most IUL cases that come across my desk are being sold for supplemental retirement income. The tax advantages of using life insurance as the growth vehicle continue to resonate with consumers. When we narrow our focus to this accumulation space, I think it’s easier to identify key features that would make up the best IUL. There are some key things that I look for when recommending one IUL product over another. I look for indexing options that provide high upside, competitive loan provisions that help maximize distributions and competitive underwriting to make sure these cases get placed! These three items in particular are how I determine which products and carriers I think offer the best solutions for clients. I look at A LOT of products. In fact, I am working on anywhere from 30-50 different cases each day so I know what options are out there and which ones I think are the best.
That’s why I am excited that one of my favorite IUL carriers just released an enhanced version of it’s product. I feel strongly that these enhancements will strengthen this carrier’s position atop the IUL marketplace. The biggest enhancement doesn’t go into effect until this summer but it will be a huge development in the underwriting of these cases. We are expecting 50% of cases (up to $1M of coverage) to be approved without requiring a paramed exam! This simplified underwriting option will greatly enhance the ease of doing business for both clients and agents. It also means cases are going from submitted to paid that much faster. That makes everyone happier!
Another enhancement that is already available is a new convertible term rider. This gives the client the opportunity to grow into their policy as their income increases. The convertible term rider can be added for up to 10X the base face amount. It gives the client a chance to maximize their policy for tax-free growth as they are able to afford higher premiums. It also gives agents a chance to make multiple sales with one client as the conversions are fully commissionable.
An improved cost structure within the product decreases charges about 20% for policyholders. There’s also a new guaranteed growth bonus in years 11+. Both of these items mean clients are seeing an increase in cash value growth and tax-free distributions! What’s not to like?
I’d love to show you this product on your next IUL opportunity. Give me a call (800-356-4189 ext. 218), shoot me an email (firstname.lastname@example.org) or hit me up on the chat box below.
Louie Hillman is an emerging young leader in the life insurance industry. He is currently ECA Marketing’s Top Life Marketer and co-host of the Quantum Marketing Radio Podcast (www.quantummarketingradio.com). He is recognized for having a unique ability to find creative solutions on tricky cases. He is also commended for his attention to detail and responsiveness on case questions. Louie is a key advocate for ECA’s marketing and sales programs. Enjoys connecting his agents with programs that help lead to more meetings, clients and sales. Louie Hillman joined the ECA team in 2013 after 6 years in the TV news industry. He says the skills he developed as a news reporter and anchor make him a perfect fit for staying on top of new product information, communicating sales ideas, and developing marketing strategies for his producers.
Louie graduated with a degree in Communication Arts from the University of Wisconsin-Madison (Go Bucky!) in 2007. He married his college sweetheart, Marie, in 2013. Their first child, Gianna, was born in August 2014. When Louie is not busy talking life insurance, you can find him on the golf course still trying to break 80 for the first time or running around Lake Harriet in South Minneapolis with his family.