Month: May 2019
James Christie | The Policy Purpose Statement
[et_pb_section admin_label="section"] [et_pb_row admin_label="row"] [et_pb_column type="4_4"][et_pb_text admin_label="Text"] One of the most difficult things in our business is setting proper expectations. The illustrations we use make this increasingly more difficult. A big reason for this is the illustration was never meant…
#166 | Securian ValueProtection IUL
At first blush, Securian’s new Value Protection IUL (VP IUL) looks like a simple, straightforward and fairly competitive product with a limited guarantee. It doesn’t look like it will upend the segment or push any design boundaries, particularly not when…
James Christie | Flip the Script – Solve for the Rate
The IUL marketplace is backwards, matter of fact, it is upside down. Frankly, the way products are being sold right now feels like we are a bunch of mouth-breathers. As I spoke about in the first post of this series,…
#165 | Indexed UL Class Action Lawsuit Investigation
In the last few days, a link to a posting on topclassactions.com has been blazing through the industry like wildfire. The headline specifically references a class action lawsuit investigation trying to find (and presumably sign up) Pacific Life PDX and…
James Christie | It’s a simple collar expansion conversation.
I have been asked countless times in the last 12 months to explain what is going on in the IUL space. Specifically, how to describe what is being referred to as “leveraged IUL” products being sold in the marketplace. “If…
#164 | Permanent Life Insurance and Future Capital
If liquid capital is cash sitting in your account ready to deploy at your discretion, then contingent capital is cash that arrives because of a specific triggering event. Borrowing liquid capital has a discrete cost in the form of an…
James Christie | Don’t “Default” On Your Obligations
Input premium. Input pay duration. Solve for minimum non-MEC death benefit. Solve for most efficient year for the switch from Option 2 to Option 1 death benefit. Solve for loans (usually participating) from age 66-84. Take that number and sell…
#163 | IBTs and Corporate Division Laws
In the wake of GE’s massive $15B hit from its legacy Long-Term Care insurance block and continued struggles in the broader LTCi market, the NAIC has taken up the charge in 2019 to examine a national framework for insurance business…
#162 | Visualizing the Indexed UL Product Landscape
This article uses analysis from the Dynamic Illustration Tool, our proprietary software system for comparing products. We attempt to keep all rates and products up-to-date, but that is sometimes not possible because products have been taken off the market and…
#161 | PacLife Reduces Surplus Premium Load
A couple of weeks ago, PacLife reduced the Surplus Premium Load on its Indexed UL products from 13% to 6%. This might seem like something of an innocuous change, but it’s not. The Surplus Premium Load (SPL, let’s say) was…
