@daniel I wasn't trying to attack you. Just pointing out that in the case that was being discussed, the higher death benefit directly resulted in the agent making more money. We're not comparing two people, we're talking about one case. For the same (one) person (tobacco, age, etc.), a higher DB will result in a higher target.
I'm sure you see it all the time with IUL just like I do.
Apologies if you thought I was going after you or something.
@qity All good were on the same team, it's just the word I chose in the moment. We both meant the same thing but got there in a different way. I converted a WFG agent on my team, and it's been hell correcting everything they taught her about IUL and Annuities. I have interrupted numerous conversations because what was being said made my skin crawl. But at any rate, that's why we are here helping dispell the myths of illtrained over zealous agents.
@daniel This is inaccurate. The death benefit (actually face amount) directly affects the commission. The higher the face amount, the higher the target premium, and therefore the higher the commission.
@r3g3nt I agree, but the death benefit can be different based on age and gender for a non tobacco male age 45 with 1,000,000 DB gives a target premium if roughly $18,700 while the same 1,000,000 DB for a 5 yo gives a target premium of roughly $4,600. The deathbenefit drives the target, but it's not the metric used to determine how we get paid.
@jane3322 These IUL agents are gonna ruin the industry for everyone. Let me guess, they said the words, “infinite banking” “0 loses” “compounding interest” “cash value life insurance”
@clewis damn right, and the dividend has a max, so if the market performs 20%, we only get 5.2% something, i read the fine print. jeez, another reason we cancelled it.
@jane3322 No disrespect but it also seems like you don’t understand the contract/the insurance agent didn’t explain it correctly. There is no dividend for IUL policies.
@jane3322 I also disagree with the term and investing the rest but that’s probably because I have a cash value WHOLE LIFE policy. If you’re still interested I’d recommend reading confesssions of a CPA and Becoming your own banker
@jane3322 A downside to canceling your IUL is if you truly needed the protection. Getting a term policy is actually tougher from an underwriting perspective than an IUL so make sure you keep that in mind.
@kilmanagh we already have a term 500k/person, prior to getting IUL. i dont think we really need IUL since we haven't maxed out our ROTH IRA, 401k, IRA, we are under 30s, no mortgage
@jane3322 If your friend sold you a product that was different from what you requested then I would even reach out to the carrier and request a refund of premium. If you had requested a minimum death benefit and were sold an inflated one then that's very bad. I've seen the carrier do it before. Can I ask what carrier this was with? I saw you make a comment about a 5.2% cap on the index? If so that is a SHIT cap.
I own 3 very large (to me) IUL policies and understand how they work very in-depth, so I feel very comfortable with them. Carriers and products vary wildly, though, so I'm sorry this happened to you.
@jane3322 All IULs are going to have caps on them, but generally they're much higher. For example the IULs I have have a cap of ~11-12% on the S&P.
Again, depending on how long you held them and who the carrier is, I would call them and tell them that you were misled by the agent in what you were buying and that you demand a return of premium.
