Indexed Life Digest Home Page
Indexed Life (IUL) Digest!
Editor: Brett Anderson
Nationally Renowned Expert on Indexed Life
“Last Chance Retirement“
Being Your “Own Banker”
(the only book using IUL)
find both at www.lastchanceretirement.biz
This is a Member Fee Subscriber Site!
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“I want to educate Doctors, CPA’s, Attorneys, & Small Business Owners about IUL and do it with Integrity. I told (my agency (also a member)) I wanted to learn everything I can and know IUL’s inside and out. He then suggested I subscribe to your IUL Digest and said,
“If I can only know 10% of what you know that I’ll be in the top 10% of knowledge!”
New Member / 29 December 2013
September 26, 2013 / Kurtis Barnett
“Brett, I just wanted to say thank you soooo much for doing all the leg work for us as insurance agents and financial reps. I was ecstatic when I found your site! I have been planning on doing for years what you have already done, but just never had the time to do it. You have made it incredibly easy for me to give clients information in a compact format. I hardly meet with anyone anymore for multiple meetings. Most of them, I just meet to collect a check. Thank you, thank you, thank you!
Secondly, your customer service is second to none. I can’t believe that you just personally CALLED me on the phone to answer an email that I sent to you about one of your books and a scenario that I had.”
1 November 2012
Brett, I have had an annual Platinum membership with IULDigest for over two years and consider it to be a real bargain. I get unbiased information on all IUL policies and an apples to apples comparison on each, plus 40 minutes of free consultation with you each month. Best of all, I can call you when in competition with another agent to compare policy features. You truly provide a great service! Steve Patterson Ballantyne One Charlotte NC
15 August 2011
Hello Brett, You are, sincerely, a virtual treasure trove of invaluable information. I cannot thank you enough for this astute, erudite, insightful information which, quite frankly, dispels apprehensions for me and my clientele. Sincerely,
J. Stonehouse / MA
4 January 2012
“I am shocked (this site and www.lastchanceretirement.biz exists) and very pleased with the devine …. that I found you ….by accident. This (CV Ranking) Chart is INVALUABLE …You have done YEOMAN SERVICE to the financial people selling IUL … I thank you for it!!” Nosh D. / AZ
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Indexed Life is “THE” Insurance and Retirement Plan of Today and the Future that offers SAFETY and the Potential for Great Returns for your Clients!
Along with TAX FREE Income!
IUL Digest is the ONE STOP place for the Advisor who is Serious about
understanding how IUL’s work and how to compare them Apples-Apples!
“20 Year Historical Cash Value Charts“
On IULDigest is Information on ALL 34 Primary Companies and their Annual Pt.-Pt. IUL Policy’s (and more) AND the ONLY service that Calculates & Ranks their actual past 20 Year (1994-2013) historical NET performance [net of all annual policy costs & today's Cap for all years] for a TRUE APPLES-APPLES* Comparison!
20 Year Analysis SAMPLE: www.iuldigest.com/?page_id=2909
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Running Gains Report Updated for 2013
The information in this one chart can more than pay for your IUL Digest membership for the year!
You can now show your client both the historical track record of the S&P 500 AND “exactly” what they could earn with their IUL over a lifetime! This chart shows the gross gain for every 5, 10, 20 and 30 year period since 1945 for both the S&P Index and an IUL using an average cap.
It ALSO shows the average cumulative Expense Fee (see next ‘report’ under Newsletter and Articles) AND the NET IUL gain for each time period for ages 30, 40 and 50. Result: You can “prove” to your clients that the average 20 and 30 year historical gain for the past 67 years when using a “top” IUL is over 8% NET!
15 Indexed Life Deal Breakers
Here are 15 Features of Indexed Life policies that if they are missing from an IUL it is an egregious omission and an automatic DEAL BREAKER regardless of how good the rest of the policy may be. If the primary purpose for having an IUL is Retirement Savings and Income the Loan options are the most important after Caps and Expenses. As such, how the money can be taken out of the policy eventually is critical to having it be successful as well as “protecting” the integrity of the policy in a worst case scenario (preventing a Lapse because of loans). This report lists the Deal Breakers and also the Companies that have them.
THIS WEEK’S NEWSLETTER 8-26-14
(non-members can view)
The Reports in IULDigest are usually only available to Members. However the Report for “3 Pay vs 5 Pay” below is available to everyone. This is for two reasons:
1) You can sample the type of information that is available to members to see if you think it is worth your while to join. On it you will find things like a ranking of all the co’s. for many of the IUL plans in the market, as well as a prior 20 year historical analysis of each IUL. The basic membership is only $99 yr., or about $6 month after taxes on a pro rata basis. This may be the best bargain in the business!
2) I really dislike that this concept is being promoted by many agencies when it is the worst way to move money from a Qualified Plan into an IUL. The only reason to do so is Commission GREED! If it helps you understand why not to also do it then that is my good deed for today!
3 Pays – Good Strategy or Bad? BAD!
In the past couple of months I have received many queries about the 3 YR Premium concept that is being promoted by several agencies currently. The concept is moving monies from a Qualified Plan (QP) into an IUL as quickly as possible, and borrow from the new IUL the monies needed to pay the taxes on the distribution from the QP. This is a BAD deal for your clients (actually Agent Malpractice) for 3 reasons :
1) Requires a LOT more insurance than a 5 pay.
2) Reducing the insurance in YR 4 incurs a substantial Surrender Charge.
3) Both of those more than offset any benefit of a loan to pay the taxes, needlessly incurring Loan Interest vs. just paying the deferred taxes.
(For the report click on the link above and you will find it’s link on the Newsletter)
IUL Sales Strong in 2nd quarter
Surprise! Retirement is better than Expected
Nearing 60 – Don’t Skimp on Retirement Savings
And more …
Article by Brett in Agent’s Sales Journal 5 May 2010
A) Why Indexed Life is a Great Alternative to More Popular Retirement Savings Plans
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* Brett’s Article in Agents’s Sales Journal 7-1-10
“I’ve been in the business even longer than you and pride myself on being one of the better informed
advisors among my peers. HOWEVER, after reading your article, I felt like a rank amateur. Thank you
for your eye opening article … We need people like you, so keep up the good work.”
Jim J., CLU / 8 January 2014
B) The Misuse Time Bomb of Indexed Life Variable Loan Rates
With the right design and company, indexed life may be one of the best retirement savings investments today. But there is one major flaw in the way most agents present projections of future streams of income; consequently, an unwelcome reckoning may be coming.
3) Comparing IUL’s Apples-Apples
Article about this by Brett in Agent’s Sales Journal 1 June 2010
“How to Compare Indexed Life on an Apples-Apples Basis: 2 Mistakes You May be Making”
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Some of the REPORTS on IULDigest
“POLICY AVERAGE COSTS %“
According to Morningstar the total annual costs for the “average” domestic mutual fund is 3.03%. How would you like to be able to show that for a “Top” IUL designed the Optimal way that over a Lifetime the Average IUL Fee % is ONLY 0.25% to 0.50% per year!!
“Best Way to Design IUL“
There are two primary ways to design a UL policy – most agents don’t even know the second way for maximum cash value performance even exists! The next step to make it even better is to …
How to Best Design an IUL to stay ahead of Inflation, enahance the policy Cash Value and IRR performance AND Increase Target 30-40%!
How Often does the Co. move the money into the Index Accounts? This is something most people would not even think about. Some co.’s do this with 100% of the premium when they get it. But … - Do you know which high profile co’s move it only quarterly? - Or REQUIRE that one year’s expenses ALWAYS be kept in the Fixed Account? - Do you know which BIG name co. limits the NEW premium for a policy year that can go into the index accounts to what was paid the year before (so if the premiums paid last yr was $0 this year ALL of it MUST go into the Fixed account)?!!
This is just a SAMPLE of the Invaluable Information on IULDigest!
“I think the service you provide is incredible!”
Harry P. / Iowa / 2-10-12
The Beginning … In 2007 I had an idea to write a “Different” book about Index Universal Life, HOW it works and WHY it is a Better Retirement Savings asset with its Tax FREE Income, instead of Tax Deferred Qualified Savings. It ALSO shows how to best DESIGN an IUL and RANKS all the companies from best to worst. This book became “Last Chance Retirement” ( www.lastchanceretirement.biz ) which is very popular with — and has received rave reviews — from advisors and clients! BUT there is a LOT more specific co. and IUL information than what is in the book that changes throughout the year – you will find that here!
The caps (and so cash value gains) of the companies continually change, as well as NEW companies being introduced into the marketplace (Do you know which is the top selling co.? And that its IUL comes in dead last in performance?!). So it just seemed logical to create and provide this service where you can find up-to-date information on ALL IUL plans what their “Actual” Historical Cash Value and IRR could have been so that you can do a “fair” Apples-Apples comparison of the benefits, features and projected Cash Value of all the different plans:
1) BASIC Information on ALL Primary IUL companies and their IUL(s)
- Financial Information on Co. (Rating, Assets) - Index(s) Available - Current Cap - Participation Rate - Index Method (pt-pt, average, etc.) - Loan Options - Overloan Rider [Deal Breaker for Retirement Savings Plans!] - Accelerated Death Benefit [Great Benefit for Singles too!] - Living Benefits [This could cost your clients $1 million over a lifetime!] - Bonus [Guaranteed or Not?! What co. promotes it but won’t even put it in the policy?!] - Minimum Guaranty (CV &/or SV, Lapse) [Which co’s have a 0% CV minimum guaranty - but actually do a look-back reconciliation at a 3% minimum every 8 years (& have the highest industry caps & among lowest cost?!] - Crediting Methodology - Index Bucket Requirements and Options [Which companies lock you into an index for 5-6 years even with annual crediting?]
2) GENERAL Information on IUL - Bear Market Historical - “Lost Decade” - Company Financials - Cap History - Variable vs. Fixed or Participating Loan - No Market Risk - Tax Free Income
3) IUL COSTS - Annual and Lifetime Annual Average (Lowest Lifetime Average Cost of any “Investment”)
4) IUL NET “Historical” Gains - True Apples-Apples comparison of all IUL’s. - Adjusted Historical Comparison Illustration Rate to use for each co. - RANKING Chart of all companies for M50 NSP and M40 NSP. - NET Cash Value and IRR Analysis based on Estimated 20 Year Average Cap.
Here are two of the comments I received about this analysis:
LSW Home Office Analyst (January 2009) “Your spreadsheet seems like a logical and fair comparison. Regarding your product analysis I appreciate and respect your due diligence to benchmark and analyze our IUL products and our competitors IUL Products.”
Major Company Chief Actuary (January 2009) “Wow. There are some fairly substantial deviations between what you’ve calculated and what the carrier presents. Most of the benchmarking that I’ve seen from advisors, firms or third parties such as the Full Disclosure reporting from Blease Research uses the carrier’s illustration rate based on the carrier’s own lookback calculations. There is no consistency in that approach as you’ve demonstrated. Illustrating each product with the 20 year average rate you’ve compiled for each would provide you with the most comprehensive apples-to-apples comparison that I know of in the indexed life market.”
5) IUL STRATEGIES - Retirement Savings - Own Banker - Pension Max - BEST College Savings Plan
6) INDUSTRY Reports - UL, Whole and Variable Life: Actual Historical 20 Year CV and IRR from the Companies! - How they really performed vs. how the co. said they would perform 20 years ago!
7) NEWSLETTER (2-3 per month) - Updates on IUL Industry & Co. changes - Other Industry News - New IUL Analysis Report by Brett - Articles in General related to Retirement Savings (National Debt, LTC, Health Costs, etc.)
(Many agents tell me they are glad they subscribe just for the Newsletter!)
… on “Last Chance Retirment” materials for Gold and Platinum Members:
- Books, Booklets, Power Points, IUL All Co.’s Reference Manual, IUL vs. QP Manual and More! The most comprehensive IUL educational and marketing materials in the Industry including a Consumer Booklet on how an Index Annuity really works and what features to include and avoid; which are the best Co’s!
1) Copper $99 Year
- Access to Site and ALL its Reports and other Materials (NO Discounts on Books, Booklets, Manuals and PPT)
2) Gold $145 Year
- Access to Site and ALL its Reports PLUS Discounts on Last Chance Retirement Materials.
- Also Includes Free 20 minute Consultation each Month ($50 Value – Case Design, General IUL Questions and/or Specific Product Questions]
3) Platinum $199 Year
- Access to Site and ALL its Reports PLUS Larger Discounts on Last Chance Retirement Materials.
- Also Includes Free 40 minute Consultation each Month [$100 Value - Case Design, General IUL Questions and/or Specific Product Questions]
I have received NO remuneration of any kind from any Insurance Co., IMO or Agency for any of the information on this website.
All of the information is believed to be correct but is NOT warranted.
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