IUL Initial Premium (Annual Pay)

[hooverfactory]

-My check is in the mail to carrier X. It's for the annual premium amount and is the initial premium to bring the policy in-force.
-Policy allows for transfers.
-I've requested that my premium go into the fixed account and then on the sweep date each month, 1/12th of the amount of the check in the mail sweeps into a newly created point to point segnent. I like to do this to spread risk across the entire year as opposed to one segment.
-Being told they can't do this and I can pay premium monthly if I'd like instead of annually.
-Have IULs with carrier Y and carrier Z and both them do what I've described above.

Is carrier X the oddball or are carriers Y and Z the oddballs?

 

[kim5398]

@hooverfactory Carrier X is the oddball in my experience.

 

[hooverfactory]

@kim5398 Thank you. I felt like I had gone crazy when my agent told me they couldn't do that.

 

[kim5398]

@hooverfactory Sure. Now you got me curious what carrier this is. I didn't realize there were still carriers out there that couldn't do this.

 

[hooverfactory]

@kim5398 Kinda sounds like Warren Buffet nickname Oracle of Omaha, but one word is different . Normally, their IUls aren't very competitive, but they have a no load IUL that isn't advertised. And no per $1k fees either. Just COI and $60/yr admin. Agent isnt making any commission but he's a friend so he's ok with that.

 

[kim5398]

@hooverfactory I got you. Sounds like a special deal for you. I thought I had heard that they demutualized.

 

[hooverfactory]

@kim5398 Honestly, I'm not sure on the subject matter of demutalization. As it pertains to the IUL I gather, it was designed for RIAs working in an assets under management setting. But any agent can sell it as long as they're OK with no commission. The link below is basically it branded through Ash Brokerage, but outside of Ash it goes by the name Professional Advantage. https://www.ashbrokerage.com/learn/concept-library/no-load-indexed-universal-life

 

[kim5398]

@hooverfactory Gotcha. I won’t be able to use it as I own a firm and all we do is life insurance.

 

[hooverfactory]

@kim5398 Are you seeing the general opinion of IUL get better or worse? Or stay the same? I feel like so many people don't understand its benefits if properly structured and just jump on the bandwagon of hate because they are ill informed.

 

[kim5398]

@hooverfactory Interesting question. It seems to be worse especially given the AG49 illustration regulations and the corresponding gamesmanship by the carriers to overcome these regulations. It also doesn’t help that agents are incorrectly representing the product and worse misusing it such as in highly leveraged premium finance cases that have no chance in succeeding.

 

[hooverfactory]

@kim5398 Yeah, I think it's terrible that bad actor agents sell it the way they do. A quick glance at YouTube will make your stomach turn to see all the people pitching it as infinite banking and be your own bank. And the gamesmanship by carriers is indeed kind of scary. No cap indexes but participation rated only guaranteed at puny numbers like 30%. And Bonus this Bonus that but of course none are guaranteed. The only way to overcome all that stuff is to properly structure and fund.