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“What’s working in the market?”
“What is selling out there?”
“What should I be talking about to my clients?”

These questions can perhaps be answered by asking another question:
“What are clients buying today?”

If you haven’t yet noticed, there is a new emerging Indexed Universal Life market that many of your clients should know about. IUL is hot! So hot, perhaps, that it is creating a drought for some other life insurance products.

Indexed Universal Life (IUL) policies provide your clients the opportunity to indirectly participate in the growth of stock market indices without assuming volatile market risk. Given recent equity market volatility, these products have gained appeal and found their way into advance planning applications.

IUL continues to effectively exploit the sweet spot between safe, low-rate permanent life insurance and riskier variable life insurance. Clients just love the value proposition of a greater potential upside in stock market growth accompanied by the protection from downside risk afforded by IUL.

All life insurance is predicated on the death benefit need; however, permanent life insurance also offers the ability to accumulate policy cash value that can help your clients with other planning needs, as well as possibly helping to offset future premium expenses.

Back to Basics – How Life Insurance Works
Premiums Paid
– Cost of Insurance & Administrative Fees
= Cash Value

There are basically three major types of permanent insurance:

  1. Fixed Universal Life
  2. Variable Universal Life
  3. Indexed Universal Life

Fixed Universal Life

  • net of premiums paid flows into cash value
  • typically managed by the insurance company
  • credits a fixed rate
  • little downside of risk and little upside of benefit

Variable Universal Life

  • net of premiums paid flows into securities based funds
  • funds are chosen by the policy holder
  • performance is a function of the market’s ups and downs
  • in good times, values can increase dramatically, but in bad times can drop dramatically
  • high risk with no floor on the downside

Indexed Universal Life

  • net of premiums paid flows into cash value
  • performance is determined by an index such as S&P 500, Dow Jones, Industrial, Global indexes, etc.
  • upside benefit in a growing securities market but also has downside floor when markets are down
  • upside is usually capped to cover off the downside floor
  • ability to share in the up market, with the comfort of having a floor in the down market

Indexed Universal Life policies are becoming more and more popular because of the ability to share in the up market but at the same time provide a floor in the down market.

Our mission is to get the best products for you to help your client’s individual circumstances. We our experts at comparing these products and helping you meet your client’s overall objectives.

Call us today at (800) 846-3997 to learn more.