Newsletter 12-20-17

IUL REPORTS

Deal Breaker Chart

On one page it lists the 25 different Deal Breakers by Co.

www.iuldigest.com/?page_id=5921

 

INDUSTRY NEWS

A)  3rd Quarter IUL Sales and CSO Related Changes Coming

Third-quarter sales of indexed universal life (IUL) fell 1% to $479.5 million compared to the second quarter. IUL sales were still up 6% compared to the year-ago period, Wink’s Sales & Market Report reported.

Sales figures are being affected by how companies respond to new actuarial risk assessments, analysts say.  New universal life policies issued on Jan. 1, 2020, or later will have to conform to the latest CSO 2017 actuarial tables issued by the Society of Actuaries. That will certainly disrupt sales according to Wink:

“Each company will definitely see a decline in sales after implementing the new CSO tables in their repricing, but so far we’ve not seen a lot of companies put their index life chassis on 2017 CSO mortality tables.”  Insurers can change the cost of insurance, surrender charges, policy fees, premium loads, monthly expenses, percent of fund charges and sales charges with a repricing.

Third-quarter universal life (UL) sales were $533.6 million, while whole life sales were $1 billion.  In the third quarter, Pacific Life was the top IUL seller with a 14.9% market share.  Next was National Life Group, Transamerica, Minnesota Life-Securian, and Zurich, Wink reported. Pacific Life’s Discovery Xelerator (PDX)  IUL was the top selling IUL product.

https://insurancenewsnet.com/innarticle/iul-sales-rise-6-percent-q3#.Wjqagd-nHDd

 

B)   “New” IUL

A few agents have said to me that “X” co. has or is coming out with a new IUL.  The co. given was usually wrong, so just so you are aware the correct co. is Ameritas and it won’t be out until after the 1st quarter of 2018.

 

Articles

 Critics say (AG 49) regulation hasn’t curbed overly rosy projections for IUL

In the two-plus years since the rule’s adoption, insurers are still using what some observers call unrealistic return illustrations that could misrepresent the product to consumers.

In August 2015, when the National Association of Insurance Commissioners adopted the guideline, insurers were using an average rate of return of 7.3% when they illustrated indexed universal life policies; the rate in August this year was 6.35%, a drop of less than 1 percentage point.

… The product has experienced 10 consecutive years of sales growth, hitting $2.3 billion in annualized premiums last year, up from $300 million in 2006, according to Limra.  Indexed universal life insurance represented 21% of annualized premium among all life insurance products in 2016, up from 3% a decade earlier.

www.investmentnews.com/article/20171213/FREE/171219958/critics-say-regulation-hasnt-curbed-overly-rosy-projections-for?utm_source=Morning-20171214&utm_medium=email&utm_campaign=investmentnews&utm_visit=549148&itx=ad9d334e5068d9c05d204176071afa83744f4071fb3e42564f5c3835b4279e90%40investmentnews

Japanese doctor and longevity expert who lived until 105: Don’t retire

Today, people are living much longer: Japanese women, on average, live to 87, and men live to 80. Plus, “in 20 years we will have about 50,000 people over the age of 100,”

www.cnbc.com/2017/12/07/japanese-doctor-and-longevity-expert-who-lived-until-105-dont-retire.html

 

The maximum Social Security retirement benefit payable in 2018

The maximum primary insurance amount, or the benefit a retiree could receive at full retirement age, would be $2,788 per month, or $33,456 per year.  However, keep in mind that this assumes that the beneficiary claimed at full retirement age. To maximize your Social Security benefit, you’ll need to wait until age 70 to claim. For an individual reaching this age in 2018, this would translate to a 32% increase in their monthly benefit, which translates to a maximum possible monthly Social Security retirement benefit of $3,680, or $44,162 per year.

www.usatoday.com/story/money/personalfinance/retirement/2017/12/04/this-is-the-maximum-social-security-retirement-benefit-payable-in-2018/108185942/

 

Tax bill kills this key strategy for how you save for retirement

  • Current tax rules allow you to reverse your decision when you convert a traditional pretax IRA to a post-tax Roth IRA.
  • The latest version of the tax bill released last week would end your ability to undo that conversion.
  • Savers who have made IRA conversions this year should decide whether they want to undo those transactions before the new year.
www.cnbc.com/2017/12/19/roth-ira-conversions-cant-be-undone-under-gop-tax-reform.html

 

Why aren’t single’s saving for retirement?

The “Singles & Money” survey found that only 44% of single Americans are saving for retirement, compared to 63% of their married counterparts.

http://theweek.com/articles/743670/why-arent-single-americans-saving-retirement

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