When it comes to indexed universal life (IUL) products, it seems like all products use the same general design. It can be tempting to choose a product based on which illustrates best. However, when you look closer at each product illustration, you’ll start to notice some important differences you and your clients should be aware of. These differences are in the product’s charge structure and in the value-added features the products come with.
In our newly updated Cost Comparison flyer, you will uncover:
- How our cumulative charges compare to our competitors
This shows how much of the premium goes towards accumulating cash value vs. paying for policy costs.
- The internal rate of return needed to achieve the same cash value for the same premium
This helps isolate all of the other ‘moving parts’ in order to show how high of an internal rate of return is needed to make up for the policy charges and generate a cash value. It’s important to keep in mind the internal rate of return also takes into account the impacts of bonuses and multipliers. While these features can help increase the illustrated cash value, companies don’t generally give these away for free – they come at a cost.
- Some questions that you should be asking yourself when selling an IUL product to your client
You have a responsibility to your clients. We encourage you to make sure you are asking yourself some questions to help make sure you are comfortable recommending the product to your client.
Take a look at our Cost Comparison flyer to learn why an IUL with a low cost structure is important for your clients.