Securian allows a 4 to 1 blend ratio with a minimum base of 100k. So you can do a 500k DB policy with a 100k base and a 400k term rider as well as larger DB amounts using the same ratio. That will give you the maximum efficiency policy for cash growth with the lowest fees and commissions. Allianz actually allows a 10 to 1 ratio between the ages of 18-50 and a 5 to 1 ratio outside of that age range.
@@WWIIPacificHistory thank you for sharing and providing a explanation. I’m for all intent and purposes a newbie. I’m in the process of reactivating my license; in the meantime I’m studying. My emphasis is on truly understanding how to properly design/ structure (which makes up 85%) efficient policies particularly IULs. I’m aware there are multiple variants to policies.I’m also a firm believer in doing right by the client ( everyone likes to buy no one wants to be sold), this industry has a bad rap due to lack of integrity and knowledge by agents. There’s so much infighting, gatekeeping and greed that the client is the one that loses out. We need to do better and I plan to be.
The additional charges column is actually just the cost of insurance for the term rider portion of the DB that shifts over to that column since you’re using the term rider. Since the underlying chassis of an IUL is annual renewable term anyway, there’s really no difference in the COI between the base insurance and the term rider insurance. The HUGE difference with using the term rider is it greatly lowers that policy issue charge as well as the surrender charges making the policy maximally efficient for cash growth with great early liquidity.
By blending in the term rider to lower overall cost/fees how are you able to max fund the policies in particular the 3 pay and remain compliant with tax citations TEFRA, DEFRA & TAMRA. I appreciate this illustration especially when it comes to fees as IUL policies get a bad rap. I realize most of that is b/c most agent don’t bother to deeply understand how IUL’s work. They are either product pushing or chasing 🤑. It’s a integrity issue and contributes to an existing problem.
Blending in term does not affect the different MEC compliance limits. The same rules and calculations apply whether the DB is all base or a mixture of base and term.
Securian allows a 4 to 1 blend ratio with a minimum base of 100k. So you can do a 500k DB policy with a 100k base and a 400k term rider as well as larger DB amounts using the same ratio. That will give you the maximum efficiency policy for cash growth with the lowest fees and commissions. Allianz actually allows a 10 to 1 ratio between the ages of 18-50 and a 5 to 1 ratio outside of that age range.
@@WWIIPacificHistory thank you for sharing and providing a explanation. I’m for all intent and purposes a newbie. I’m in the process of reactivating my license; in the meantime I’m studying. My emphasis is on truly understanding how to properly design/ structure (which makes up 85%) efficient policies particularly IULs. I’m aware there are multiple variants to policies.I’m also a firm believer in doing right by the client ( everyone likes to buy no one wants to be sold), this industry has a bad rap due to lack of integrity and knowledge by agents. There’s so much infighting, gatekeeping and greed that the client is the one that loses out. We need to do better and I plan to be.
@@jasondurant6581 I’m actually just a client and not an agent, but yes more honest agents who do right by their clients are greatly needed!
The additional charges column is actually just the cost of insurance for the term rider portion of the DB that shifts over to that column since you’re using the term rider. Since the underlying chassis of an IUL is annual renewable term anyway, there’s really no difference in the COI between the base insurance and the term rider insurance. The HUGE difference with using the term rider is it greatly lowers that policy issue charge as well as the surrender charges making the policy maximally efficient for cash growth with great early liquidity.
@@WWIIPacificHistory Thank you,I appreciate the further elaboration and sharing of information. This what the industry needs.
Excellent presentation and very nice to know.
By blending in the term rider to lower overall cost/fees how are you able to max fund the policies in particular the 3 pay and remain compliant with tax citations TEFRA, DEFRA & TAMRA. I appreciate this illustration especially when it comes to fees as IUL policies get a bad rap. I realize most of that is b/c most agent don’t bother to deeply understand how IUL’s work. They are either product pushing or chasing 🤑. It’s a integrity issue and contributes to an existing problem.
Blending in term does not affect the different MEC compliance limits. The same rules and calculations apply whether the DB is all base or a mixture of base and term.