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Each permanent product has its benefits. I’ve been doing this 30 years. Anyone else here have that many years?
In 1980 UL was considered the best product because it had great returns (12%) and flexible premiums without having a loan. In 1990, Equitable (now AXA) touted VUL because you had market returns and flexible premiums. In he mid 2000s, GUL was touted because it had lifetime guarantees and flexible premiums. And today, IUL is touted because it has the guaranteed floor (ie improper sales practice of saying you can’t lose money), with the upside of the market.
Problem with IUL is the carriers have dropped their top line performance number because the cost of allowing the client to “share” in the upside is too expensive (ie the hedging or put options). And the carriers can change that rate anytime, and HAVE, from 13.5% to 8.5% or 9%. Lastly, Whole Life at each of the carriers has dropped in performance from 8.5% to 5.5 to 6.4% (depending on the carrier).
So ask yourself, why are you buying the product? What rating can you get? And are you using it for accumulation or death benefit protection? Based upon that answer, your health and rating, and expected cash flow both today and in the future, that is the product you need to buy.
The only thing about all these product that is guaranteed across all of them is change. At some point in the future, something will change and you need to be able to pay the additional premium if needed, or know that if you don’t, the coverage will still be there.
No one can tell you.... what the best product is, just what the features are. As I said in the beginning, I’ve been doing this 30 years, and life insurance is a key component of my planning for both individuals and businesses, and we decide on product based upon the goal you wish to achieve.
Feel free to reach out if you want more guidance. Good luck.
Ps. If you have health issues, DO NOT apply with a formal application. You are better off sending in a “preliminary” informal app with your medical records and a cover letter to each carrier, where they can give you an idea of the rating that you might be. Then you can run the illustrations and decide what is best for you. All of my clients who are not in perfect health go through this process.
Best of Luck.
I’ve been in the business for 35 years. I agree with president,FA1. There is no “best” product for ever case. Depends on your goals. I’ve sold , UL ,VUL ,GUL and WL. My firm has started selling a lot of IUL. ( I’m one of the owners). I don’t trust IUL. For me now, I try to find one of the WLs that can fit the need with extra term to fill gaps. The WL has many guarantees and is very predictable. If you really know how it works you can make it just as flexible as a UL. UL’s still scare me because of both reps selling it wrong and clients using it wrong I’ve had to handle well over a thousand complaints for UL’s of all varieties over the years. ( contracts that I did not sell).
Most products are good when used correctly.
10,15 or 20 Pay Life. Paid up in term you pick, earns 3+ in dividend.
Variable life or fixed. Is the need for life insurance or for accumulation.
If it’s for cost effective and no cash value, I’d go for American National’s UL. It has a cash out option and living benefits at no extra premium. I don’t work for American National but it’s hands down the most competitive in benefits and premium.
IUL is where the industry is going. Most product innovation and the best pricing are in IUL. Cash flow out with participating loans are hard to beat.
Bowl Leader
The industry is going there because it’s more profitable and less risk to the insurance company.
All the gimmicks and tricks on the illustrations will lead the industry into huge problems and lawsuits.
New York life
I want variable but due to my Heath I don’t think there would be much profit
10 year pay while life
Also,IUL is a what if product. It needs to be overfunded to work. Whole life today also offers ways to overfund as well and have the guaranteed factor as well.