On our webinar last Friday, we showed you a powerful sales idea for indexed universal life insurance that you may not have ever seen before. In case you missed it, or want some more details, be sure to watch the full webinar replay by clicking here.
Here’s a quick recap of this innovative sales idea that can offer liquidity AND principal protection!
North American’s Rapid Builder IUL product is designed to accumulate cash value quickly in the beginning years of the policy. The idea is to take a lump sum of money (in our example it was $100,000) and dump it all into this product in one year. We purchased the waiver of surrender charge rider so that there would be no surrender charges and the money would be completely liquid after the first year, drove the Death Benefit down as much as possible to increase the cash value and watched the money grow. The policy is designed to earn 1.5% in the first 10 policy years, while always being completely liquid and 2.1% after year 10. Essentially, this is a possible CD alternative that also has a decent death benefit attached to it.
Keep in mind that this is just a hypothetical example and that the appropriateness of this strategy will vary from client to client. However, this could be a good strategy for a client who’s looking to potentially grow their assets while still maintaining protection of their principal. Remember that all guarantees are backed solely by the claims-paying ability of the issuing insurer.
Call our life department for more details, or to discuss your next case with us! We’re always here to help!