Welcome to

 Indexed Life Advisors Digest!

 Editor: Brett Anderson
Nationally Reknowned Expert on Indexed Life
and
Author of “Last Chance Retirement”
[ www.lastchanceretirement.biz ]

This is a Member Fee  Subscriber Site!

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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!

Indexed Life Advisors Digest is the ONE STOP place
for the Advisor who is Serious about understanding
 - how IUL’s work, and learning
- how to compare them Apples-Apples! 

On IULDigest is Information on ALL 31 Primary
Companies and their Annual Pt.-Pt. IUL Policy’s AND
the ONLY service than Ranks their actual historical NET performance
with a TRUE APPLES-APPLES* Comparison based (too) on
deducting all annual policy costs!

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THIS WEEK’S NEWSLETTER 1-16-12

www.iuldigest.com/?page_id=2764   

 

IUL REPORT

The information in this one chart can more than pay for your IUL Digest membership for the year!

1) Running Gains Report Updated for 2011

  With this chart you can now show your client both the historical track record of the S&P 500 AND “exactly” what they can hope to 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 with an average cap of (only) 16% (co. actuaries think 18% more likely).

  It ALSO shows the average cumulative Expense Fee AND the NET IUL gain for each time period for ages 30, 40 and 50  for a maximum funded plan initially using Increasing insurance.

  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 8.6% to 9% NET!

 

2)  S&P and so IUL Gain for 2011 was 0%.  NOT!!

The Dec. 31-Dec. 31 2011 gain for the S&P 500 was 0%. But the average gain over the whole year for an IUL with a 14% cap was 6.84%! The 20 year NET IUL IRR was 6.21%. For the S&P with 0% in fees it was 4.90%; if less 3% avg. mutual fund total fees it was 1.53% net! 

  The historical 20 Year Cash Value Chart for 1992-2011 and the 40 year Cash Value Chart (with 20 years of Loans) based on what every annual gain would have been less all annual costs is NOW available on the updated charts for all 31 primary co’s that offer IUL.  The co’s that dropped the most are WRL and TransAmerica with their Global multi index lookback option – this is because the Asian and European indexes incurred losses of over 20% each the last 6 months of 2011.  For this invaluable information on and ranking of all companies join Indexed Life Digest!

 

IUL & IA NEWS

Life Insurance Trends to Watch in 2012
  Indexed UL sales also are surging. “It’s the right product for the times,” says Robert Kerzner, LIMRA’s president and CEO. “People want a safe harbor in the storm and indexed products give them that downside guarantee and at the same time, you end up with more dollars in the till for retirement.”

Indexed UL premium was up 35% through the first three quarters of 2011, according to LIMRA.

Indexed UL is finding appeal particularly in the expanding 60 to 70 age group, observes Randy Rowray, AAPA, vice president of marketing at the National Benefit Corp. in West Des Moines, Iowa. More insurers are entering the indexed UL marketplace to serve that fast-growing customer segment, resulting in richer participation rates for investors.

 

  ARTICLES

1) 529 college savings plans have their downsides

“529s were no friend to us. Honestly, it’s probably one of the worst things we did. I could have made more money putting it in a mayonnaise jar and burying it in the backyard.”

2) Retirement? No way! Seniors continue working out of need and pleasure

3) More Policyholders Keeping Their Indexed Annuities

4) 2011 stock markets: A rollercoaster ride that ended where it started

5) Market Indexes 2011

6) Asian Indexes 2011

7) 11 retirement changes for 2012

8] Investment experts from BlackRock, Vanguard, Fidelity look ahead in 2012

9) Retirement investing: catching up

10) Early retirement a pipe dream for the unprepared

11) Younger investors aren’t avoiding stocks, study finds

 

 Newsletter, Reports & Articles 

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Article by Brett in Agent’s Sales Journal 5 May 2010

Why Indexed Life is a Great Alternative to
More Popular Retirement Savings Plans

http://www.asjonline.com/Issues/2010/5/Pages/Why-Indexed.aspx 

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* Brett’s Article in Agents’s Sales Journal 7-1-10

 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.

http://asjonline.com/Issues/2010/7/Pages/The-Misuse.aspx

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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 

 http://asjonline.com/Issues/2010/6/Pages/How-to-Compare.aspx 

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IULDIGEST

 

   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:

I) 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

 - Sweep Methodology [Which co.’s put client premium into the Index Daily,
                                       Quarterly or only 1x Year?!]

- 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?!]

- Fixed Bucket Requirement [some co’s require 12 months expenses]

- Crediting Methodology
  [One well known co. requires that ALL premium in excess of the prior year MUST go into the Fixed Account - many of their Agent Marketing people don’t know this!].

- Index Bucket Requirements and Options
  [Which companies lock you into an index for 5-6 years even with annual crediting?]

 

 II) GENERAL Information on IUL

- S&P Historical Information

- IUL Running Gross Gains (1, 5, 10, 20, and 30 year periods past 65 years)

- Bear Market Historical

- “Lost Decade”

- Company Financials

- Best Policy Design (Level vs. Increasing) and how to …

- Inflationize IUL

- Cap History

- Variable vs. Fixed or Participating Loan

- No Market Risk

- Tax Free Income

 

 III) IUL COSTS

- Annual and Lifetime Annual Average
  (Lowest Lifetime Average Cost of any “Investment”)

 

 IV) IUL NET “Historical” Gains

- Analysis for each co. IUL based on Current Cap, Participation Rate, Minimum Guaranty and Guaranteed Bonus the “Actual” CV of each Co. IUL cash value for the past 20 years (1991-2010). Gains shown are based on the average of the annual quarterly gains of the S&P 500. Each co. report shows yr-x-yr Policy Costs, Net Cash Value (not including surrender charges) and Internal Rate of Return. This results in a …

- 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 (18%!).

 

  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.”

 

 V) IUL STRATEGIES

 - Retirement Savings
- Own Banker
- Pension Max
- BEST College Savings Plan

 

 VI) 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!

 

VII) NEWSLETTER (3-4 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!)

 

VII) DISCOUNTS

…  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!

www.lastchanceretirement.biz  www.iuldigest.com/?page_id=135

 

MEMBERSHIP OPTIONS

 

I) Copper $99 Year

 - Access to Site and ALL its Reports and other Materials
(NO Discounts on Books, Booklets, Manuals and PPT)

 

II) 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]

 

III) 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]

 

TO JOIN

Copper     www.iuldigest.com/?page_id=1720

Gold     www.iuldigest.com/?page_id=1729

Platinum     www.iuldigest.com/?page_id=1738

 

Disclaimer

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.

Site Disclaimer Legalese
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