Tag Archives: Indexed Universal Life

EXCITING NEWS!!! The North American Guarantee Builder IUL is now even more competitive!

The North American GIUL was already an industry leader,
but the carrier thought they could do even better.

North American has recently repriced and retooled their Guaranteed Indexed Universal Life policy to reduce the cost of the guaranteed death benefit option. In addition to their repricing, the carrier has also expanded their Accelerated Benefit Rider to now include both Chronic (LTC expense advancement) and Critical Care (acceleration of death benefit with qualifying major medical events) benefits. Please see the below highlights and click the button at the bottom to see a video highlighting the NEW & IMPROVED GIUL from North American. Please contact the TFS Home Office with any questions and let us quote the North American GIUL for your next case.

Continue reading

How well do you know North American’s Guarantee Builder IUL?

Have you ever taken a moment to compare North American’s Custom Guarantee product to the Guarantee Builder IUL product?  If not, now is the time to start looking at the Guarantee Builder IUL!

Did you know, the Guarantee Builder could mean more cash value or an increased death benefit for the insured in later years & a higher target that pays 5% more commission to the agent?

To help break this down I have provided a chart below that corresponds with 6 real life illustrations that are attached.  The differences in premium are minimal when you compare how much they get in return for those few extra dollars a month!

Custom Guarantee Guarantee Builder IUL
41 Male
$150k DB
  • $96.43/Month (only $9.31/Month more)
  • Target $1146 ($99 more + commission is 5% higher)
  • CV @ 65= $24K (5.5% assumption) 33k (7.5% assumption)
  • DB begins increasing at age 84 under the 7.5% assumption
  • click here for the full illustration
47 Female
$50k DB
  • $49.56/m ($3.25/m LESS)
  • Target $667 ($80 more + commission payout is 5% higher)
  • CV @ 65 = $3500 (5.5% assumption) $4500 (7.5% assumption)
  • DB remains level
  • click here for the full illustration
47 Female
NT Table 3
$150k DB
  • $171.67/m ($10.21/m more)
  • Target $2061 ($45 more + commission payout is 5% higher)
  • CV @ 65 = $28k (5.5% assumption) $35k (7.5% assumption)
  • DB begins increasing at age 81 under the 7.5% assumption & at age 93 under the 5.5% assumption
  • click here for the full illustration

In many situations the Custom Guarantee can be the product of choice; however it is not designed to build cash value and therefore does not provide clients with any flexibility or control for their future.

With the Custom Guarantee:

      • Clients continue to pay the premium to keep the policy inforce so a death benefit can be paid upon their death.
      • Or, they can exercise the Guaranteed Exchange Provision, which allows them to exchange it for another North American policy (with the exception of Term or Survivorship), where they retain their rate class from the original policy and do not have to go through UW for the new policy.  The new policy will use their current attained age.
      • Clients stop paying the premiums and cancel the policy, at which time they get nothing in return for the premiums they have paid into the policy
      • Or, they surrender the policy for the surrender value, where the surrender value is minimal or most likely zero. 

With the Guarantee Builder:

      • The client may pay a slightly higher premium to have a guaranteed death benefit just like the Custom Guarantee, but they have the added potential for cash value accumulation
      • In addition to having the guaranteed DB, the cash value in of the policy can provide added benefits:
        • May provide flexibility to skip premiums based on index performance & cash value build up
        • May provide the option to withdraw or loan the cash value based on the index performance
        • May increase the DB in later years based on the cash value growth as a result of the index performance
        • Surrender value may be available based on the index performance if they want to move to another life insurance product (via 1035) in the future.

When an client asks for a Universal Life or Permanent illustration make sure you send them a Guarantee Builder IUL illustration as well!  By taking a few extra minutes to run a Guarantee Builder IUL illustration you are providing the client an option they may not have been aware of!  I like to call the Guarantee Builder IUL ‘the best of both worlds product’ because clients get the guaranteed death benefit they need plus cash accumulation they desire!

If you are not sending out a Guarantee Builder IUL quote when a client is looking for a guaranteed death benefit – you should be!

Contact Steven Hipsher @ 732-758-9300×165 or shipsher@tfsweb.com for more information today!