Preferred Sponsors
IUL Q&A
Why IUL
| IUL Spotlight |
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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.
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Guarantees
2%
minimum guarantee rate
Guaranteed
account value enhancement
Basic no-lapse guarantee
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Choices
Seven
interest crediting strategies
14
riders
Two
loan options
Flexible
premium payments
Three
death benefit options
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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
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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.
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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
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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!
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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?
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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:
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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
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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
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10%
7%
2%
7%
0%
0%
2%
2%
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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.
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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.
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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.
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