I'm considering to take out a life insurance policy and would like to know about variable universal life insurance. Thanks for any comments.
Total Comments: 21
Posted: Mon Nov 28, 2011 08:02 am Post Subject:
Don't believe it. If the S&P goes up 10% and the indexed UL product has a 14% annual cap (annual point to point strategy) the client gets 10%. The contract participated in the index gains. If the S&P goes up 20% and the contract is credited with a 14% gain, it participated in the index gains.
Wikapedia states: "These type of contracts only participate in the movement of the index and not the actual purchase of stocks, bonds or mutual funds. (Sounds like participating in the index growth to me.)
Posted: Mon Nov 28, 2011 08:32 am Post Subject: secondary policy?
Thanks for this input - never thought about having it as a secondary policy. Makes sense!
Posted: Mon Nov 28, 2011 09:21 am Post Subject:
I tell you what, you run your definition of indexed products by your DOI and the SEC and see what they say. Just make sure you don't mention your name or call from your home phone.
Indexed products are good when properly understood. But they do not participate in the market. They earn interest based on upon the performance of the index being followed. Also, they do not receive dividends, which can be a major factor in market gains.
Posted: Mon Nov 28, 2011 07:35 pm Post Subject:
"It gets interested credited based upon a formula that is partially based upon changes in a stock index."
Sounds like participating in the stock market growth to me.
"It gets interest credited based upon the decision of the board of directors of the insurance company. The primary factor for this is the investments in their general account. The general account is invested in securities." Therefore, we can say, "it participates in the returns of the stocks and bond markets".
Both statements are equally ridiculous. The money in both cases is in the general account of the insurance company.
Posted: Mon Nov 28, 2011 09:56 pm Post Subject:
fjamvai,
Did you even read the posts in this thread? We are not talking about fixed products. We are discussing indexed products. So your answer is wrong.
Posted: Mon Nov 28, 2011 09:58 pm Post Subject:
Did you even read the posts in this thread? We are not talking about fixed products. We are discussing indexed products. So your answer is wrong.
Do you know where the money is placed for indexed products? Do you know where the majority of the money is invested by the insurance company?
Posted: Mon Nov 28, 2011 11:50 pm Post Subject:
Did you even read the posts in this thread? We are not talking about fixed products. We are discussing indexed products. So your answer is wrong.
I would love to argue about things where we have a difference of opinion. However, it's idiotic to argue facts. Your facts are wrong.
Indexed products are fixed products. That is why one does not need to be registered to sell them. Like a traditional UL product, the money is in the general account of the insurance company. They need to hedge their risks differently, but that doesn't change anything.
The only difference between UL and IUL is how the insurance company chooses to credit interest. With UL, the board of directors makes the decision on how much interest to pay. With IUL, there is a pre-determined formula.
Posted: Mon Nov 28, 2011 11:51 pm Post Subject:
Before you started posting, we were talking about variable universal life. VUL is not an indexed product. The money is in separate accounts and, thus, is not a fixed product and one must be securities licensed to sell it.
Posted: Tue Nov 29, 2011 12:51 am Post Subject:
You said "It gets interest credited based upon the decision of the board of directors of the insurance company."
The contract does not get interest based upon the decision of the board of directors! So if the S&P gained 10% and the contract offers a 10% cap you are saying that the Board of Directors can say they will credit 3%! That is wrong. The contracts PARTICIPATE IN THE STOCK MARKETS GROWTH! GET OVER IT!
I am not arguing that the money is in the general fund. I know it is not invested in the stock market. They buy options so that the account can PARTICIPATE IN THE STOCK MARKET GROWTH.
Posted: Tue Nov 29, 2011 01:21 am Post Subject:
I am not arguing that the money is in the general fund. I know it is not invested in the stock market. They buy options so that the account can PARTICIPATE IN THE STOCK MARKET GROWTH.
So when you ran this by your state's DOI, the carrier's compliance department, the SEC, what did they say about it?
Posted: Mon Nov 28, 2011 08:02 am Post Subject:
Don't believe it. If the S&P goes up 10% and the indexed UL product has a 14% annual cap (annual point to point strategy) the client gets 10%. The contract participated in the index gains. If the S&P goes up 20% and the contract is credited with a 14% gain, it participated in the index gains.
Wikapedia states: "These type of contracts only participate in the movement of the index and not the actual purchase of stocks, bonds or mutual funds. (Sounds like participating in the index growth to me.)
Posted: Mon Nov 28, 2011 08:32 am Post Subject: secondary policy?
Thanks for this input - never thought about having it as a secondary policy. Makes sense!
Posted: Mon Nov 28, 2011 09:21 am Post Subject:
I tell you what, you run your definition of indexed products by your DOI and the SEC and see what they say. Just make sure you don't mention your name or call from your home phone.
Indexed products are good when properly understood. But they do not participate in the market. They earn interest based on upon the performance of the index being followed. Also, they do not receive dividends, which can be a major factor in market gains.
Posted: Mon Nov 28, 2011 07:35 pm Post Subject:
"It gets interested credited based upon a formula that is partially based upon changes in a stock index."
Sounds like participating in the stock market growth to me.
"It gets interest credited based upon the decision of the board of directors of the insurance company. The primary factor for this is the investments in their general account. The general account is invested in securities." Therefore, we can say, "it participates in the returns of the stocks and bond markets".
Both statements are equally ridiculous. The money in both cases is in the general account of the insurance company.
Posted: Mon Nov 28, 2011 09:56 pm Post Subject:
fjamvai,
Did you even read the posts in this thread? We are not talking about fixed products. We are discussing indexed products. So your answer is wrong.
Posted: Mon Nov 28, 2011 09:58 pm Post Subject:
Did you even read the posts in this thread? We are not talking about fixed products. We are discussing indexed products. So your answer is wrong.
Do you know where the money is placed for indexed products? Do you know where the majority of the money is invested by the insurance company?
Posted: Mon Nov 28, 2011 11:50 pm Post Subject:
Did you even read the posts in this thread? We are not talking about fixed products. We are discussing indexed products. So your answer is wrong.
I would love to argue about things where we have a difference of opinion. However, it's idiotic to argue facts. Your facts are wrong.
Indexed products are fixed products. That is why one does not need to be registered to sell them. Like a traditional UL product, the money is in the general account of the insurance company. They need to hedge their risks differently, but that doesn't change anything.
The only difference between UL and IUL is how the insurance company chooses to credit interest. With UL, the board of directors makes the decision on how much interest to pay. With IUL, there is a pre-determined formula.
Posted: Mon Nov 28, 2011 11:51 pm Post Subject:
Before you started posting, we were talking about variable universal life. VUL is not an indexed product. The money is in separate accounts and, thus, is not a fixed product and one must be securities licensed to sell it.
Posted: Tue Nov 29, 2011 12:51 am Post Subject:
You said "It gets interest credited based upon the decision of the board of directors of the insurance company."
The contract does not get interest based upon the decision of the board of directors! So if the S&P gained 10% and the contract offers a 10% cap you are saying that the Board of Directors can say they will credit 3%! That is wrong. The contracts PARTICIPATE IN THE STOCK MARKETS GROWTH! GET OVER IT!
I am not arguing that the money is in the general fund. I know it is not invested in the stock market. They buy options so that the account can PARTICIPATE IN THE STOCK MARKET GROWTH.
Posted: Tue Nov 29, 2011 01:21 am Post Subject:
I am not arguing that the money is in the general fund. I know it is not invested in the stock market. They buy options so that the account can PARTICIPATE IN THE STOCK MARKET GROWTH.
So when you ran this by your state's DOI, the carrier's compliance department, the SEC, what did they say about it?
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