IUL and Volatility

IUL and Volatility

It has never been more important to help our clients protect what they have from the volatility in the market. According to a new study from Allianz Life, more than half of Americans say the pandemic has had a negative effect on their retirement savings and nearly the same number say they don’t think the markets have seen their lows yet. 72% say that they are reevaluating their savings plan and thinking about how to protect what they have from market volatility. 

This is a great opportunity to have a conversation with your clients about hedging their retirement savings with an Index Universal Life policy. Insurance companies have figured out a better mouse trap and we owe it to our clients to discuss it with them. If 72% of our clients are looking to hedge their market risk, we already have the solution and we can help them with that. The IUL story has always been upside market potential with downside protection.

The introduction to multipliers a few years ago threatened to destroy that story with asset based fees and other hidden “Black Box” charges associated with their bonus multipliers in an effort to win an illustration war. AG-49a has put an end to those games and we now have a level playing field once again, that is in the best interest of the client. We can once again confidently discuss the benefits of Index UL with our clients. 

Finally, there is no better asset class then a cash value life insurance policy when it comes to the tax advantages. A common objection we always hear is the underlying cost of insurance inherent in all of these contracts. A little known change in the IRS definition of life insurance, IRC sec. 7702, will make the cost of that insurance lower than ever. At Rocky Mountain Insurance Network, our motto has always been “The cost of insurance is significantly less than the cost of taxation.” Call us today so we can show you how we are helping our agents and advisors use IUL to hedge against market volatility and provide tax advantaged savings for their clients.