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Preferred Sponsors                 IUL Q&A                Why IUL

IUL Spotlight

Aviva USA
Vista Lifetime

Vista Lifetime, a flexible premium universal life plan with an indexed feature from Aviva, can help your clients build a solid foundation of financial protection for their families, businesses or estates. This high target premium plan can help your clients prepare for the future today with choice, flexibility, value and security.

Guarantees

    2% minimum guarantee rate

    Guaranteed account value enhancement

    Basic no-lapse guarantee  

Choices

    Seven interest crediting strategies

    14 riders

    Two loan options

    Flexible premium payments

    Three death benefit options

 

Product Features

Index linked interest crediting options that include a guaranteed minimum interest rate while providing more potential over the life of the policy for greater interest crediting than most traditional life insurance products

An array of riders to customize the policy

Qualified and nonqualified policies available

Issue ages 0-85  

Aviva has led the way in indexed life insurance product development for nearly a decade. Their products offer outstanding value and innovative features for your clients. For Complete Information Contact Our Preferred IUL Sponsors.  


Financial Brokerage, Inc. 800-397-9999

www.fb-inc.com

The one you are looking for…

The sales environment that makes sense for the accomplished independent agent. Financial Brokerage offers a wide variety of top-rated carriers and products – real choice that means more earning potential for you.  

Experience our unique blend of high commissions, top-tier incentive trips and a serious commitment to the producer. 

No one offers you more – top carriers, top compensation, and unmatched producer recognition programs

Davis Life Brokerage             800-747-5612            

www.DavisLife.com

The Davis Life Brokerage Vision... We are dedicated to supporting agents and financial planners with a high level of expertise and diversity... to become Your Financial Partner For Life!
 
Looking towards the future, our ultimate goal is to become AMERICA'S ANSWER TO BROKERAGE SERVICES. We're striving to become the most innovative, quality-oriented, service-based organization, dedicated to professional growth for our agents and employees through education, technology and training.
 
By combining efficient support systems and technology with a commitment to superior service, we are able to consistently exceed your expectations. Meet the DAVIS LIFE TEAM...our most powerful formula for success!


IUL Q & A

My clients all seem to have diabetes or heart ailments or both - how do I know whether they will be declined and how do I present the strongest case to the Carrier?

Davis Life Brokerage answers: It's a matter of knowing the carriers and knowing which questions to ask. Different carriers look at impairments differently and you need to know how to present the case in the best possible light. We have found drafting letters that highlight the positives in a case often helps and it is good to talk directly with the underwriters on case specifics. An agent can either make the calls and spend the years to build a relationship with carrier underwriters, or they could let Davis Life Brokerage use their years of experience to help them land the case with their no-cost preliminary underwriting process. Give us a call at  800-747-5612.   

    

What Is IUL?

The dynamics of the last decade resulted in a new approach to permanent life insurance. Consumers liked the higher return potential of linking cash value growth to equity markets in VUL, but didn’t like the possibility of losing cash value if the market went down. To meet these needs insurance companies developed indexed universal life or IUL.

IUL shares the coverage and premium flexibility of other universal life policies, but the crediting of interest is unique. Typically, cash value increases are linked to positive changes in an equity index. If the index is higher at the end of the policy year the interest credited to the cash value will reflect this. So, if the calculated index is higher at the end of the year the cash value will participate in a percentage of this increase.

What if the index goes down? If the index stays flat or declines the cash value is still credited with a minimum guarnteed interest rate. This is the attraction of IUL. When the index goes up the policy owner shares in the increase, but if the index goes down the policy still earns at least a minimum interest rate.

It should be noted that the cash value will probably not reflect all of the increase in the index nor are dividends or capital gains included in the index calculation. Protecting the cash value from market loss and guaranteeing a minimum return costs money, and money used to protect the cash value means a reduction in maximum potential returns. Even so, IUL offers many features:

 

Index Universal Life Offers

Tax-Free cash to heirs

Tax-deferral of interest earnings

Interest earnings that benefit from index increases

Guaranteed minimum annual returns

Cash value protection against market declines

Annual lock-in of earnings

Access to cash value

Premium flexibility

 

After Cost of Insurance is Deducted

 Calculated Index Gain
 
 Excess Interest Credited 

 Minimum Interest Rate

 Interest Credited to Policy

     

 Calculated Index Gain

 Excess Interest Credited 

 Minimum Interest Rate

 Interest Credited to Policy
 

   10%

    7%

    2%

    7%

 

   0%

    0%

    2%

    2%
How Interest Is Credited

An IUL policy works like other universal life policies. Premium paid and interest earned are added to the policy value, and policy expenses and the cost of insurance are subtracted. The only difference is interest earnings are linked to the performance of an external index.

Let’s say that we have an accumulated value of $10,000 and a minimum interest rate of 2%. We’ll further assume that we receive 100% of the calculated index gain for the year up to a maximum of 7%. At the end of the year the calculated index gain is 10%. The accumulated value would earn 7% for the year $700. So, our accumulated value would now be worth $10,700 ($10,000 plus $700).

 

But what if the market dropped 10% the following year? The locked-in value of $10,700 would be unaffected by the market decline and would earn 2% or $214 ($10,700 time 2%) leaving an accumulated value of $10,914. The policy receives the greater of minimum guaranteed interest rate or the excess interest earned from the calculated index gain.

 

  Why Would I Consider IUL?  

Indexed Universal Life is for people that need life insurance and desire permanent protection. They want greater flexibility and greater control than is available with traditional insurance. IUL owners:

Like the opportunity for higher potential interest with index linked returns

Don’t like the volatility and risks of VUL

Want the certainty of knowing they’ll earn at least a minimum return in good times and bad

IUL is available as a flexible premium personal insurance plan with premiums typically paid monthly or yearly. IUL is also available for estate planning purposes as survivorship life. And, IUL is available as a single premium insurance instrument.

 

Questions? If you have questions about IUL or life insurance in general send an email to webmaster@indexannuity.org and we'll do our best to get you an answer.

 

 

 
Copyright 2008 Jack Marrion, Advantage Compendium Ltd., St. Louis, MO (314) 434-6030. webmaster at indexannuity.org. All information is for illustrative purposes only,  does not provide investment or tax advice.  No index sponsors, promotes, or makes any representation regarding any index product. Information is from sources believed accurate but is not warranted. Advantage Compendium neither markets nor endorses any financial product.