Breaking News: NAIC Votes to Stop Big Bonuses – Multipliers in IUL Illustrations
After reading this newsletter many readers will want to sign up for two items:
1) Our WEBINAR where we explain the pros and cons of big bonus IULs or ones with huge multipliers.
http://strategicmp.net/pros-cons-iuls-multipliers-bonuses
2) My favorite IUL that offers a client-friendly design.
http://strategicmp.net/roccys-favorite-iul
This news is going to catch a lot of advisors and IMOs off guard.
The NAIC (National Association of Insurance Commissioners) voted at a recent board meeting to stop allowing IUL (Indexed Universal Life) companies from illustrating big internal bonuses and multipliers.
I’ve called for restrictions on illustrations ever since Pac Life launched its IUL with huge internal multipliers with huge corresponding expenses.
I’ve been warning advisors and IMOs to stay away from IULs with big bonuses and/or multipliers. Clients have no idea the risks they are taking with such products. They simply see a cool looking illustration and think, hey, that looks good.
What’s ironically pathetic is that not only does the client have no idea of the dangers of these products, but most insurance agents selling them don’t understand them (but they do like the big commissions).
What will come from the recent NAIC vote? Hopefully new rules that implement what the board voted on. We’ll see if Pac Life and other big bonus IUL companies start lobbying against the implementation of new illustration rules. I hope they fail at any such effort. I imagine we’ll know by early 2020.
If you are working with an IMO who has been pushing the Pac Life product or the new Lincoln IUL product, I highly recommend you look for another IMO to work with.
If you want a recommendation to an IMO that only allows “suitable” sales of quality “client- friendly” products, email me at roccy@strategicmp.net and I’d be happy to refer you to the one I work with.
IUL Comparison Software
If you want to communicate the value of IUL as a protective wealth-building tool, you need to check out the OnPointe IUL Comparison Software. It’s the easiest to use and it’s the most accurate software in the industry.
To learn more, click on the following link: http://strategicmp.net/iul-comparison-software
The following are two of the charts generated by the OnPointe IUL Comparison Software. The first chart shows borrowing from the IUL (blue bars) vs. a brokerage account (orange bars) and the second chart shows the amount that will pass to the heirs at death.
Also, if you didn’t read my recent newsletter: Breaking News: Security Benefit Sued for Fraud in FIA Class Action Lawsuit, click on the following link:
http://strategicmp.net/archived-newsletters-and-webinars
Roccy DeFrancesco, JD
Strategic Marketing Partners
269-216-9978
roccy@strategicmp.net
