Pinney Insurance Center, Inc. has partnered with North American to provide a five-part webinar series on IUL. Each session lasts 30 minutes; the first 20 minutes will be information provided by North American’s Chris Korfe and the final 10 minutes will be made up of Q&A.
Here's the complete list of webinar topics:
- Part 1: IUL Mechanics (you're here now)
- Part II: How Insurance Companies Cover Indexed Credits
- Part III: Compelling Features
- Part IV: Illustration Tips
- Part V: How to Sell IUL
Our first session, “IUL Mechanics,” discussed crediting strategies, index segments, annual resets, participations rates & caps, and minimum account values. Here is a quick rundown of takeaways from this presentation:
- Four Crediting Strategies:
- Annual point-to-point—the safest of the indexing options. 0% floor and no charge for negatives. No worries about market volatility. Client will always see a positive and only the starting and ending points of the year are looked at.
- Monthly point-to-point—calculation is the same formula as Annual PTP, used for each month instead. This is a good option for a true bull market.
- Daily Averaging—not as popular as first two but good for client who wants something linear. This strategy helps smooth out the highs and raise up the lows.
- Multi-Index Annual Point-to-Point—combines indexes by giving the client 50% of his/her best performing index, 30% of the second-best performer, and 20% of the lowest performer (toward the amount to be credited).
- Index Segments (Buckets): Buckets accumulate credits that are added into the account value of the client’s IUL policy after a duration. Buckets are based on how the client pays their policy premiums, e.g. a client that pays their premium on a monthly basis will have 12 index buckets which allow better diversification on a dollar coast averaging method.
- Annual Reset and 0% Floor: There will never be a negative number involved in calculating credits. Annual reset allows for the client to start from the current market value of the index.
- Participation Rates & Caps: Because there are different index options, participation rates and caps vary from strategy to strategy.
- Minimum Account Value: this North American feature guarantees your client a positive return.
Feel free to give us a call at (800) 823-4852 if you’d like to discuss IUL in more detail immediately.