Come to the agent with a figure, as in, for example, wanting to put in $15,000 a year for the next 20 years. Work backwards from the amount of money intended for premiums to solve for the minimum face amount that’s still within the limits as a non modified endowment contract (MEC). Guideline annual premium: Guideline premium test (maximum non-MEC) S & P 500 Index annual point-to-point interest assumption of 5% or at most 5.50%Ĭommonly presented index interest rate returns of 7% to 8%+ each and every year over 20, 30, 40 years and longer are unrealistic and highly speculativeģ. Identical assumptions: rate classification, premium amount, index rate, number of years paying premium, loan yearsĢ. Relative performance of the carriers, identifying the top performer, matters more than the figures themselves, which lack validity since they are projections over too long a period of time. Then compare cash value accumulation and loans for retirement income.

Insist each and every carrier use the same assumptions. Make specific requests for the illustration’s structure, especially index interest rates assumptions. A competent life broker has the ability to email multiple carrier illustrations for comparison purposes. All life permanent life insurance, whole life, UL, or IUL with non guaranteed assumptions require illustrations for the insured’s review and signature.

What is the best way to compare Index UL (IUL) companies for cash value accumulation and loans for retirement income? Request illustrations be emailed to you.

Penn mutual accumulation builder iul