A Real Life Case: Winning a Protection-Focused IUL Sale

A member of our Sales Team was recently approached by a brokerage manager. They were in competition with another broker for a protection-focused IUL sale on a 61 year old Preferred Plus male. Here’s what the competitor was showing:

  • The competitor policy had a $5,250,000 face amount and a single premium of $1,105,000.
  • The competitor policy would carry to age 103 using their max illustrated rate of 6.60%.
  • On the guaranteed side, the competitor’s policy carried to age 83.

Here’s what our Life Protection Advantage IUL showed for the same face amount and single premium:

  • Our policy would carry to age 100 using our max illustrated rate of 5.45%.
  • On the guaranteed side, our policy carried to age 80.

The brokerage manager asked what we could do to win this case.

  1. First, we stressed tested both policies at a 5% hypothetical rate. At this rate the competitor’s policy only ran to age 89 while the Life Protection Advantage IUL policy lasted to age 96.
  2. Then, we did a cost analysis. When we compared the competitor’s policy fees to the Life Protection Advantage fees, the results were astonishing! When the client saw the first year charges, he was shocked to see that he lost almost 40% of the initial premium to fees. That was enough to convince him to go with our Life Protection Advantage IUL. The competitor’s first year fees were higher than ours were in the FIRST TEN YEARS. The competitor’s policy performance was relying on some pretty consistently high crediting rates to accomplish even close to what the illustration was showing. Here are the numbers:
    MOO IUL Cost Analysis | Real Life Case

And keep in mind, in addition to our much lower policy fees, Life Protection Advantage IUL also includes $1,000,000 of chronic illness protection, with no additional upfront cost.

If you are working on any protection-focused IUL cases, we encourage you to take a look at our Life Protection Advantage IUL. If you have any questions or would like to see a comparison on your next IUL sale give your sales team a call.
 

A Real Life Case: Winning a Protection-Focused IUL Sale

 
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