Unrealistic IUL Illustrations Are Unnecessary
May 25, 2019 by Bruce Carlton, CLU
Many agents are motivated to show IUL illustrations that have the highest cash value and income compared to other carriers. Typically, with very little in the sales funnel the agent is anxious to make a sale and is naive in thinking the numbers are real. Carriers also anxious to increase sales make it easy for unsuspecting agents by providing products and illustrations that have a very low probability of success but look exceptionally good.
Enter AG49; The intent of AG49 was to apply parity and maximum illustrated rates to make it better for the consumer. Since AG49, carriers started adding bonus multipliers and account value charges. Pre AG49, only 1 of the top 10 IUL carriers had a bonus multiplier. Now, 9 out of the top 10 carriers have bonus multipliers.